Maryland International College

Project Logistics and Contract Administration

Submitted By: Habtu Deldil,

ID: MPM/028/14

Submitted To: Tarekegn (PHD)

Submitted Date: January 27, 2024

Summary

The purpose of this paper is to identify factors that influence the performance of value
chains and suggest areas for future research mainly focusing on a selective set of earlier
works within the value chain model as conceptualized by porter..

The researcher begins with the development of value chain concept which its main intent
is increasing the value of a product of service through a collaborative players who work
together to satisfy market demand for specific product or service.

The writer explains further the concept of value chain touches that it has been employed to
examine and evaluate entire industries and examining whether economic upgrading at global
level which necessarily leads to social upgrading defined as the “improvement of worker”

Review/Critique

To evaluate how much value your company is creating, it’s critical to understand its value chain.
On the framework of the value chain analysis it discusses the classification of value chain in
terms of who drives the chain as buyer driven chain versus which are labor intensive and capital
intensive respectively. Whether it is buyer driven or producer driven value should be added every
step of the way.

Every chain performance depends on the position along the industry chain and how much
valuecan able to create and capture. Value chain activities should be performed based on the need
of the customer that exceed the cost of doing in order to be competitive

In the article it addresses the limitation of earlier management literature with regard to its scope
and value creation when compared to recent development.Identifying contribution of each actors
and understanding of the interaction within the supply chain is required in order to create
enabling environment although there are factors beyond the control of the value chain members.
It is suggested in the article that consideration of value chain analysis in developing countries in
assessing their industry has high importance specifically for small enterprises. The researcher
used both qualitative and quantitative research approach and observation, semi-structured
interviews, focus group meeting and questionnaire as its data collection tool.

It explains that to add value on a product or service suggest a value configuration analysis focus
on identifying factors that make firms distinctive in the market place and for better understanding
of each components impact on cost and value. Beside to value chain two other value
configuration the value shop and value network introducedand all of the activities that make up a
firm's value chain split into two categories that contribute to its margin: primary activities and
support activities according to Porter’s definition.

As we all understand that every time a new concept developed it comes with its own advantage
and shortcoming and sometime it may be difficult to observe the full picture. In this particular
article the value concept was designed mainly for manufacturing firms in mind but it provides
partial understanding of value creation in supply chain relationship and accordingly an alternative
view proposed on how value creation happens in concerning understanding of the collective
business reasoning of supply chain system. It suggest that collective business reasoning, focusing
in single and interlinked chains in the supply chain literature needs to be complemented with an
understanding of co-producing , layered and interconnected supply chain structure.

Value chain shouldn’t be limited to inside the firm rather it has to harmonize multiple firms in
order to become stronger and result greater benefit the customer. It is advisable that taking into
consideration of many factors instead of regarding customers as homogenous groups while
analyzing a value chain what is called scope of value considered.

Due to the limitation of earlier studies regarding flow within and along a chain six dimension of
value chain suggested namely processes, product flow, financial flow, information flow ,incentive
system and governance. According to the article to have a significant impact on power and
control in a value chain the smooth flow finance, the strength and accuracy of information, the
commitment existed in sharing risks and coordination system within the value chain is very
important.
Suggestions

 To aware the people the method transmitted corona virus.

 Based on outcome; - to increase level of awareness of the pandemic.
 To understand precaution of transmission of pandemic how many people implement to
understand the level of pre request.
 Based on time: - corona virus pandemic is recently must aware all people in the world
aspect.