CASE STUDY IN VALUE CHAIN MANAGEMNET

Case study in Value Chain Management



Value Chain Management

Introduction

A value chain is the set of procedures to determine the ability of an organization to obtain a competitive advantage. These steps correspond to the services of the company or arbitrarily complex nested activities that constitute the organization. Value chain management synchronizes the functions of a company and its suppliers with the material flow, the services and customer needs. Efficient value chain work better in the demand forecasting and product or service is stable. Examples of competitive priorities are low cost, quality, on time delivery.

Value chain management process tackles the basic business problems of supplying the product to assemble demand in an uncertain and complex world, from the point of vision of the whole value chain. Smaller product cycles and greater product diversity increased value-chain costs as well as complexity. The new concept of globalization and outsourcing of business and fragmentation has made it vital that this matter be considered from the perspective of the whole supply chain, rather than the limited view of individual companies. Advances in information technology contributed to a real-time exchange, coordination and decision-making company (Ramsay 2005, 549).

The value chain is a term used in the field of business management. Value chain is a series of activities that contribute to the value of the product more than its cost. Usually, all products pass through the value chain that begins research and development and engineering cycle are moved to manufacturing cycle and then on to the customer or disposed of Post-Sale Services and Disposal Cycle. The passage of products in this series created so-called Total-Life-Cycle Costing is the process of managing all costs related among the series value.

Background

Tata Motors acquired the Jaguar Land Rover business from Ford Motor Company in June 2008. Jaguar Land Rover is a global premium automotive business, which designs, manufactures, and sells Jaguar luxury performance cars and Land Rover premium all-terrain vehicles. As part of the acquisition, Tata Motors acquired the global businesses relating to Jaguar Land Rover including three major manufacturing facilities and two advanced design and engineering facilities in the UK and 26 national sales companies spread across the world. Jaguar's principal products are the X-Type, XF, XJ, and XK. Land Rover's principal products are the Defender, Freelander 2 (LR2), Discovery (LR3), Range Rover Sport, and Range Rover.

The buyers (car dealerships) are in a strong position in the sense that they are the intermediaries between the manufacturer and the end-user (consumer) as therefore, fulfil a crucial role, however, they are dependent on the manufacturer to provide the product to be sold - as production numbers have fallen in recent years, dealer insolvencies have increased. This dependence weakens buyer power. Key inputs include commodities, e.g. steel, the price of which may be difficult for manufacturers to control; other inputs include as fabricated components, labour, etc (Dinh 2010, 99).

The car manufacturers market will be analyzed taking manufacturers as players and car dealerships as ...