Value chain

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Valuechain

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Valuechain

Globaland domestic value chain managers are faced with different challengesprimarily because of the areas they cover. Ford Motors Company andAmerica’s Car-mart Inc. are examples of multinational and localentities respectively. Though they operate in the same industry,supply chain managers are faced with the following challenges.Firstly, at Ford Motors, the leadership has to ensure that theoperational risk is kept at its lowest while considering thechallenges emerging from the different areas where the company isbased (Ross, 2013). On the other hand, at America’s Car-mart,managers have to ensure that the entity complies with all theregulations affecting the business even when they are unfavourable tooperations. These challenges can be addressed by making sure thatentities comply with the regulations set in all areas where theyoperate. Additionally, managers need to make sure that there is adetailed analysis of the risk associated with each market beforeventuring in such areas.

Thevalue chains for the two entities can be evaluated using the generalmanagement process. For instance, in pre-production stage, Ford hasto ensure that it lays down a framework to ensure products from allplants are of high quality. This is done through contract negotiationand training services (Ross, 2013). At the post-production servicestage, the entity ensures that customers’ queries are addressedaccurately and promptly. This is achieved through areas likeefficient warranty and transportation services.

Unlikemultinational entities which offset weaknesses in one area with thestrength of the other, local organizations have a harder timeimplementing the general management process (Ross, 2013). ForAmerica’s Car-mart, the pre-production stage will involve ensuringthat the product meets the specific need of the market. For instance,ensuring that vehicles have safety inputs required by law. Withregards to post-production services, the entity has to make sure thatcustomer services are competitive with others offered in the market.This may entail ensuring that warranty claims are addressedefficiently, or maintenance services are availed at areas convenientfor clients.

Reference

Ross,D. F. (2013). Competing through supply chain management: creatingmarket-winning strategies through supply chain partnerships. SpringerScience &amp Business Media.

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