Value Chain Term Paper Example | Topics and Well Written Essays - 1500 words

Value Chain - Term Paper Example The company aims to achieve its mission and vision by fulfilling the needs of varied customers spread at different locations globally. The company ensures that it provides the best quality products at the best and affordable prices which are further accompanied with best services within the industry (Ashley Furniture Industries Inc, â€Å"A Proud History and Poised for a Formidable Future†). Thesis Statement The paper critically identifies the value chain activities practiced by Ashley Furniture Industries, Inc and briefly recommends on various core areas of the company in relation to value chain. Value Chain and Ashley Furniture The term ‘Value Chain’ was first coined by Michel Porter in his famous book ‘Competitive Advantage’ in 1985. The analysis of value chain identifies the activities performed by an organization and further relates them with the organization’s competitive strengths. Porter identifies primary and secondary activities as th e two major activities essential for value chain analysis. He further grouped the primary activities into five sub-heads including inbound logistics, operations, outbound logistics, marketing and sales and services which are concerned with the value creation as well as delivery of products. Similarly, secondary activities are also grouped into four sub-heads namely, human resource management, technology development, infrastructure and procurement. The secondary activities help organizations to enhance the efficiency and the effectiveness of the overall organizational operations (Food and Agriculture organization of the United Nations, â€Å"The Value Chain†). The basic model of value chain is being represented below: Source: (Food and Agriculture organization of the United Nations, â€Å"The Value Chain†) Primary Activities Inbound Logistics Ashley Furniture aims to produce world class durable furniture in attractive designs and affordable prices. Furthermore, the comp any ensures that by no means are its product qualities compromised; and customers receive value for their investment made in terms of durable and finished products. The company has partnered with best class suppliers for the supply of a variety of components required for the manufacturing of the furniture products. In addition to this, the company has the largest air-ride truck fleet in the industry which can be evident on the highways of Wisconsin (Wisconsin Manufactures and Commerce, â€Å"BPES-Ashley Furniture†). The tractors involved in the transportation of required components for the manufacturing process are equipped with auxiliary power units that result in less consumption of fuel almost by 10 percent. Additionally, the company is also striving to procure materials locally in order to reduce the cost of transportation and thereby offer its products at affordable prices to its discriminating customers (Ashley Furniture Industries, Inc, â€Å"Ashley World Class Furnit ure Company†). Operations Ashley Furniture has more than 250 acres operating space for manufacturing and distribution throughout the world. It has the biggest casegoods production related plant in the United States. The company sells furniture in more than 123 countries around the globe. The major regional manufacturing and