4 What is a value chain analysis How important do you think

4. What is a value chain analysis? How important do you think value chain analysis is for Synlait Milk?

we cover this topic in strategic management

Solution

Value Chain analysis is studying the inbound logistics, operations, outbound logistics, sales & marketing, and customer service functions of a company and see how these activities are adding value to the company. Value chain analysis is important for any and every company as it gives an idea of where the company stands. The same applies to Synlait Milk as well. Synlait being a dairy processing company has to deal with a lot of suppliers and transportation people on a daily basis. So it is important for them to maintain a healthy relationship with them and keep the process under control keeping a long-term business in mind. The operations is also very important as the business happens on a daily basis and the company needs to be on its feet all the time to keep the production going and maintain the required quality standards. Once the product is ready, the company needs to market and sell it to the target customers and also provide the required customer service by answering the questions of the customers. Keeping the customers educated is very important in the FMCG dairy industry as it can help them in gaining the trust of the customers.

So studying value chain analysis and understanding the above-mentioned functions is very important to grow the business and also to maintain the required quality standards and meet the set benchmarks.