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Explain the Requirements for Value Chain Management. - Entrepreneurship

Answer in Brief

Explain the requirements for value chain management.

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Solution

 Following are the six requirements for value chain management:

  1. Coordination and collaboration:
    It is essential to increase efficiency within an organization. Care should be taken that efforts are not duplicated. Firm is greater than the sum of its parts for achieving a common goal of the firm.
  2. Technology investment: With outdated technology, like old computers or machinery, an organization’s competitiveness is weakened due to a loss in productivity. This devoids the firm from gaining advantage.
  3. Organisational process: Improvement in processes through better technology and greater procedural knowledge is essential for the present and future success of a company. Continuity is to be maintained for the improvement and is to be made an integral part of the system.
  4. Leadership: Strong leaders adds to the successions value chain management. Good leaders earn the respect of their employees through neutral, effective and sound management practices. Conflict management, motivation and direction are the essential requirements of strong leaders.
  5. Employee/human resources: Without a knowledgeable and active human resources department, employees may feel they don’t have a voice within the company and this may lead to lack in belongingness from the employees. Also, an employee hesitant to go directly to the ultimate superiors with issues act as a hurdle in many situations.
  6. Organisational culture and attitudes: Organisations that foster strong cultural identity with positive attitudes tend to attract and retain top employees. Regular sponsored activities are suggested to help build cultural unity and keep attitudes positive while boosting productivity of the firm.
Concept: Six Requirements for Value Chain Management
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APPEARS IN

CBSE Class 12 Entrepreneurship Textbook
Chapter 4 Enterprise Growth Strategies
Very long answer (exceed 250 words) | Q 6 | Page 172
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