Value chain

A value chain is a progression of activities that a business or firm performs in order to deliver goods and services of value to an end customer. The concept comes from the field of business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.^[1]

The idea of [Porter's Value Chain] is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.
— Institute for Manufacturing (IfM), Cambridge.^[2]

According to the OECD Secretary-General (Gurría 2012),^[3] the emergence of global value chains (GVCs) in the late 1990s provided a catalyst for accelerated change in the landscape of international investment and trade, with major, far-reaching consequences on governments as well as enterprises (Gurría 2012).^[3]

^ Porter, Michael E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York.: Simon and Schuster. ISBN 9781416595847. Retrieved 9 September 2013.
^ "Decision Support Tools: Porter's Value Chain". Cambridge University: Institute for Manufacturing (IfM). Archived from the original on 29 October 2013. Retrieved 9 September 2013.
^ ^a ^b Angel Gurría (5 November 2012). The Emergence of Global Value Chains: What Do They Mean for Business. G20 Trade and Investment Promotion Summit. Mexico City: OECD. Retrieved 7 September 2013.

[Porter1996-1] Porter, Michael E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York.: Simon and Schuster. ISBN 9781416595847. Retrieved 9 September 2013.

[IfM-2] "Decision Support Tools: Porter's Value Chain". Cambridge University: Institute for Manufacturing (IfM). Archived from the original on 29 October 2013. Retrieved 9 September 2013.

[OECD5nov2012-3] Angel Gurría (5 November 2012). The Emergence of Global Value Chains: What Do They Mean for Business. G20 Trade and Investment Promotion Summit. Mexico City: OECD. Retrieved 7 September 2013.

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