Value chain and globalization Essay

IntroductionThe march of incorporated life is al dashs a sea transport and some propagation there ar high tides and sometimes are quiet times. Day to day companies are faced with crude challenges, whether it be a consolidated organization or a petite task just starting, always emerging issues that affect their behavior and their performance. owe to the consequences of an impressive t severallying of technology and globalization that we are living in this age. Nowadays are faster removes, new challenges threaten seriously natural selection of organizations, new foreign competitors, mobilization of capitals, difficulties in retaining human capital and ever-changing technologies are elements that require have sexrs to be prepared for change and have faculty to be active employees in order to have continuous renewal. Micro and low enterprise dominated industries have been two threatened and provided with advantages as a result of dynamic trends related to globalization (Ku la et al., 2006). Value chain is non only to implement new management models that ultimately prove to be only uncertain.However, management of change consists of take advantage of changes in business environment for the inte alight of the organization. That is why companies should not only be flexible, unless also managers should develop a keen sense to anticipate change therefore companies pull up stakes be adequate to achieve to be at the forefront. According to Porter (1998) Activities provide the bridge between system and carrying into action. When strategy was defined in terms of broad positioning concepts, a understandably separation between strategy and structure was meaningful and useful. Innovation is e realplace and organizations that are not renewed result hardly be able to survive. commencement exercisely, it should be noted that the purpose of this essay is that I want to inform what is the hold dear chain, its come to to the companies and the impact of glob alization to the value chain. Afterwards, I pass on explain the following seven major issues have had significant impact of globalization on the value chain.History of the value chain and consistingFirst of all, the value chain is a theoretical model to describe the development of the activities of a business generating value to the final customer. The value chain was expound by Michael Porter. He defines thevalue as the sum of the perceived benefits customer receives of low costs to acquire and use product or service Value is the amount buyers are willing to pay for what a libertine provides them. Value is measured by inwardness revenue, a reflection of the bell a firms product commands exceed the cost tangled in creating the product. (Porter 1998). At the same time value chain is essentially a form of analysis of business through which a attach to is split up into their constituent parts, and we can seeking to identify sources of advantage. Simultaneously, it is creating the hawkish advantage that is achieved when company develops and integrates activities of its value chain less expensive and damp differentiated than their competitors.Therefore value chain of a company is organize by all its added value generating activities and the margins they contribute Competitive advantage in regard to products and services takes ii possible forms. The first is an provideing or differentiation advantage. I f customers perceive a product or service as superior, they become more willing to pay a premium worth relative to the price they will pay for competing offerings. The moment is a relative low-cost advantage, which customers gain when companys total costs undercut those of its average competitor (San Miguel, 1996). Sometimes change times in business can generate fear, but beyond fear, managers moldiness generate within their companies the ability to bring about change. When it comes to making changes to the companies and this unremarkably means the introduction of new procedures, staff or ways of working that directly affect those around the organization employees, shareholders, suppliers, customers.Therefore managers have two options to deal with the changes. The first option is intimidated by the changes and remaining unruffled or the second option is to understand what is going on, develop strategies and implementation to deal with change. Competitive Advantage provides the architecture for describing and assessing strategy, linking it to company behavior, and understanding the sources of matched advantage. It provides the foundation needed to go deeper. (Porter 1998)According to Kula (2006), Globalization is a dish out by which plenty, companies, goods and services, capital and information and ideas are exchanged across internationalistic boundaries, is shaping opportunities for growth and poverty reduction in developing countries. In the current contextof globalization, the trend toward merging business grows increa singly harder. Therefore, it is very important to cooperation of all employees of organization in a chain and they manduction common vision for business quickly translate into mastery factors. Where employees are involved to this vision therefore they will be more successful and more collaborative mechanisms bind them to other(a) actors in the chain, the greater the play of survival and progress towards economic development processes.Moreover, companies tend to compete with other companies in the same agricultural and in the same way, companies of the same country tend to compete with companies in other countries a cause of globalization. Therefore, arguing among global companies are strongly and should possess highest level of professional competency and for this reason heads of companies should know as renew companies every day to expose high return. A good example about this information is the competence between Procter and Gamble and Unilever both are global companies a nd both offer similar products. In the case of my country In Mexico are both companies separately one have both have large factories and corporate offices the number of employees is large and both have many processes to manufacture both products, as well as quality and administrative. CEOs of each company must be updated on how to improve processes in each part of the business, the should evaluate the process and trying to reduce as many errors and waste in order to offer the best products and the best price cheaper for the end customer.So also promote more featuring your product compared with the rest of their competition, as to promote set, social responsibility, brand linkage and sometimes prizes and raffles. other key point, managers of big companies know that linking brand starts when people are vernal children and this is why, one of their main sector of society are children. Because marketers know that if a child comes to impregnate a brand in in their childhood, they wil l take for all their life and therefore they will transmit to their issuing in the future. I see this reflected in my case, since I always take to drink Coke when I am eating and I neer liked Pepsi since my childhood, this is because since my childhood always drank Coca-Cola by the influence of my mother.To date I still drink coke, this is an example of how a global company that has utilise the value chain in their structural processes relevant their product has do in my life. For a firm to achieve superiordifferentiation, it must hire the best mix of resources in creating value for its customers. In order to prioritize its processes as sources of differentiation, a company must determine what attributes of each process enhance customer value (San Miguel 1996).ConclusionIn addition, to doing this research, I could stupefy relevant information about the significant role that is playing the value chain into companies. The purpose of the essay is to provide assessment the role that could be obtained in business when is used the value chain process in the different departments of a company. The administration of change is of great importance, since it allows control of the variety process. but in most organizations even greater challenge is managing change so that through leadership can attack low productivity, motivate the actions needed to alter behavior in a meaningful way and make the change take root in infusing culture and values of the business. It is of primary importance that business leaders must be updated and project up on new models and theories about management, change and value chain.To be able to compete with the variety of existing competitors in business territory. In Conclusion, there is no possibility that organizations can achieve competitive goals, if the people who are not found suitable from the point of view of homework and attitudes, to carry on. In essence, organizations today emphasize the ability of leaders to manage their st aff. Therefore, people will go to those who can prove they have the will and capacity to meet their needs, enhancing their strengths and improving their skills. Thus man becomes the protagonist of the success of any business strategy.ReferencesSan Miguel, J, 1996, Value chain analysis for assessing competitive Advantage. bring of Management Accountants. Canada. Staying competitive in the global economy (2008) Secretary-General of the OECD