How Do You Use Value Chain Analysis To Maximize Profits?
Whether your business develops a product or delivers a service, it should never stop considering how to create more value. In the end, maximized value translates into maximized profit and that benefits both the consumer and the business. Follow these steps to begin maximizing profit through value chain analysis. Plan a meeting of senior level management. Tell the managers that the meeting will address the subject of creating more value in the company’s product or service. Each manager must bring a written analysis of his department’s specific contribution to that product or service. Introduce the subject of value chain analysis at the meeting. Solicit input from each manager and write these on a presentation slide or white board for all the attendees to view. Do not limit managers to analyzing their own departments. Invite them to brainstorm ideas on how other departments might increase the company’s product or service. Create a value chain analysis. Identify the main components of the
