Globalization and the value chain

This paper discusses elements of the contemporary value chain and their effect in the development of the best value possible by combining every phase of the value chain. The analysis is done by studying the 21 elements of the contemporary value chain and how companies can recognize the impact of the efforts of globalization on one's value chain. Each element plays a role that helps to achieve success. Budgeting, Competitive Advantage & Corporate Social Responsibilities Budgeting is viewed as a key area of effective management in the global value chain, that must be managed effectively it serves as a framework for how businesses invest on their international operations. This is important to a firm in decision making. External resource. The competitiveness of an organization is dependent upon the performance of its external resources such as customers, technology and environment which is based on exporting, supply chaining and insourcing.

Firms must understand the importance of external resources of the value chain of a business which are key elements for its suppliers , Finance, Goals & Idea Generation In the current value chains paradigm, finance serves as a real driver for competitive advantage throughout the entire value chain. A business can make decisions and assess strategies, among other factors, by using activity-based, objective costs and life-cycle costing. Goals are important elements which are built on which tasks are most beneficial to the organization and which can be improved to offer it a competitive advantage. People are a significant source of value. Shareholders Organizational value is created when the vision, strategies and goals of the management are achieved. Customers. Have more purchasing power due to availability of products all over the world.

Customer value has due to lower prices, more options to buy from availability of the products and improvement in the quality of products due to competition. This need to be in cooperated to ensure that the product meets the customers value by quality. Supplier chain management is an important element built on structure. For a firm to compete in a Global value chain it must clearly include a separate supply chain component. An effective supply chain should offer the company a competitive advantage because competition no longer lies between companies but between supply chains of these companies’. Technological considerations is important as companies have improved their operations and managers can easily collect data which allows managers to prepare, execute and implement decisions faster.