VALUE CHAIN CONCEPT Sample Clauses

VALUE CHAIN CONCEPT. The value chain concept was first used by Xxxxxxx Xxxxxx in the 1980‟s. He defined the value chain as the various activities which were performed in particular links in the chain. In the mid-1990s Xxxxxxx introduced the concept of Global Commodity Chains (GCC) (Melle, Xxxxxxxxx and Hell, 2007). The concept of a value chain has been seen as a development tool that helps in identification of policies that can be implemented for individual producers and countries to increase their share of the gains (The International Trade Centre (ITC), 2003). It also gives a better understanding of how the sector is performing and contributing to national socioeconomic development. The value chain involves the whole process of a product from its conception, through the different phases of production, to its end use and beyond (Pietrobelli and Saliola, 2008). This includes activities such as design, production, marketing, distribution and support to the final consumer (Xxxxxxxxxx, 2001). The International Trade Centre (ITC) sees it as the chain of activities from the time when the product or service is only an idea to the time when it is disposed of after use. A value chain for any product or service extends from research and development, through raw materials supply and production, through delivery to international buyers, and beyond that to disposal and recycling. Through the chain of activities, processes can be mapped to help determine better strategies to capture greater value within the national component of the global value chain. The value chain approach helps strategy makers gain a better understanding of how sectors can contribute to national socioeconomic development by using exports as a tool for development. It gives an overview of how the sector is addressing the issues of employment creation, skills development, geographic diversification of industries and other development issues. This can feed into the strategy design process, helping the strategy team determine priorities, both in terms of action for the sector under review and for the sector‟s relevance to the national export strategy. By helping to explain the distribution of benefits, particularly income, to those participating in the global economy, value chain analysis makes it easier to identify the policies that can be implemented for individual producers and countries to increase their share of these gains. The value chain in this study is used to promote the performance of smallholder farmers in th...
Sample 1
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VALUE CHAIN CONCEPT. Pietrobelli and Saliola in 2008 define value chain as a full range of activities that firms and workers do to bring a product from its conception to its end use and beyond. This includes activities such as design, production, marketing, distribution and support to the final consumer (Xxxxxxxxxx, 2001). The activities that comprise a value chain can be contained within a single firm or divided among different firms. Value chain activities can produce goods or services, and can be contained within a single geographical location or spread over wider areas. The concept of value chain has been seen as a development tool that helps in identification of the policies that can be implemented for individual producers and countries to increase their share of the gains (The International Trade Centre (ITC), 2003). It also gives a better understanding of how the sector is performing and contributing to national socioeconomic development. By definition, value chain analysis examines the full range of activities required to bring a product or service from its conception to its end use, the firms that perform those activities in a vertically coordinated chain and the final consumers of the product or service (Xxxxxxxxx and Xxxxxx, 2000). The terms value chain analysis and subsector analysis are sometimes used interchangeably. In case a subsector analysis is envisaged as examining all the firms, channels and markets related to a specific product or service a value chain analysis focusing on a single vertical chain of firms leading to a particular consumer market could be considered complementary to the subsector approach. Value chain analysis often includes additional analytical elements beyond subsector analysis such as inter-firm cooperation governance, and geographic coverage that extends to global markets. Some analysts also make useful distinctions between supply chains and value chains (Xxxxxxxx, et al., 2007). Supply chain management (SCM) is a method for integrating a manufacturer‟s operations with those of all of its suppliers and customers and their intermediaries (Tilanus, 1997), where no binding market relationship exists between players (Xxxxxxxx, et al., 2007). It covers the flow of goods from suppliers through manufacturing and distribution chains to the end consumer. SCM seeks to integrate the relationships and operations of several tier suppliers in meeting requirements such as quantity, delivery and the timely exchange of information. Xxxxxxxxxxx (1992) h...
Sample 1

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