Write a 10 page essay on Strategic Accounting Master.Download file to see previous pages... The objective of developing a value chain is to break down the business system in to a series of value gener

Write a 10 page essay on Strategic Accounting Master.

The objective of developing a value chain is to break down the business system in to a series of value generating activities and study them individually to gain more knowledge on the strengths and weaknesses of the existing business systems, so that corrective action may be taken wherever there are weaknesses and there is scope for improvement (Quick MBA). The value chain for High Tech Limited - Corporate Level may take the following form.

On an observation of the value chain both at the corporate level and at the plant level appear to be more or less similar to each other. The infrastructure development function appearing in the value chain at the corporate level does not find a place in the plant level value chain, as it would be ideal to centralize the infrastructure development for both Yorkshire and Essonnes plants. The individual functions of the value chain are explained in detail in the following section:

The primary activities in the value chain both at the corporate level and Yorkshire plant level are the same with no distinctions. Hence the discussion on the primary activities of value chain covers both the entities.

distribution to manufacturing as and when they are required by the production processes. In the case of Yorkshire plant the major issue identified with the inbound logistics is the identification of the procurement cost of the part much after accounting. This affects the pricing of the products and this area needs improvement and attention for the proper pricing of the products

Operations

This function in the value chain involves the processes of transforming the inputs into finished products and services. The strategy here is to reduce the overall product costs by reducing the throughput times. Although the time period between the parts procurement and completing the assembly takes only 3 weeks, the product lies with the dealers for another 3 weeks before it reaches the end user. Moreover the dealers are billed at approximate values for the products at the time of placing the goods with them, as the company is unable to arrive at the actual cost till one month after the goods are delivered to the dealers. There can be considerable improvement planned in this part of the value chain for improving the total product cycle time. This would greatly help the reduction of overall inventory costs.

Outbound Logistics

This function includes the warehousing and distribution of goods. In the case of High Tech Limited the disadvantage the company is facing is that it distributes the products through the dealers. The strongest competitors of High Tech have reduced the throughput time by eliminating the dealers and distributing the products directly to the end customers.