Another method of diagnosing an organization

Learning Topic
Porter’s Value Chain
Another method of diagnosing an organization is to analyze its value
chain. The term value chain was introduced by Michael Porter to
refer to the activities that are performed within and surrounding the
organization that add value to its products or services. Organizations
should perform these activities effectively for competitive advantage.
Value chain analysis identifies five primary areas within the value
chain, as shown in the figure Porter’s Value Chain:
• inbound logistics
• operations
• outbound logistics
• marketing and sales
• service
Additionally, four secondary areas are identified as follows:
• infrastructure
• human resources management
• technology development
• procurement
Porter argued that an organization should seek to provide unique
value for its customers by finding what it does best (which will result
in competitive success), rather than entering into too many markets,
striving to please everyone, or trying to provide the lowest cost.
Organizations will be successful when they focus on creating a
unique value for the customer, determine who their customer base is,
negotiate the best distribution channels, and manage their
production and pricing strategies. Organizations will always face
challenges from changes in the environment. To remain effective,
organizations will need to focus on continual innovation and on
increasing their value to the customer.
The learning resource(s) listed below will help you learn about
organizational assessments and organizational diagnosis. You must
click on each resource separately to access it. This information will be
used to complete your deliverable for this project.
The value‐added chain is the process by which technology is
combined with material and labor inputs, and then processed inputs
are assembled, marketed, and distributed. The value chain shows the
links, or chain, of the distinct activities and processes that a company
performs to create, manufacture, market, sell, and distribute its
product or service. The focus is on the activities that create value for
Value‐chain activities can be segregated to provide a detailed
identification of a company’s activities and the capabilities that
correspond to each activity. The value‐added chain is best defined in
terms of each link’s contribution to total cost. By comparing the costs
incurred by each link and against competitors, the company can
locate the critical success factors that must be addressed.
The importance of value‐chain analysis is that it helps portray the
costs in a company’s operations that might be impacted by a change
in one of the chain’s processes. By comparing a company’s value
chain to its competitors’, you can identify areas for improvement.
It is important to note that the value chain is influenced by the type
of strategy the company and its competitors follow. If the company is
a high‐value, high‐quality market leader, its chain will be different
from the low‐cost, high‐volume competitor. These differences
influence value‐chain analysis. Companies must make sure that their
business strategy is in tune with their strategic objectives.
The airline industry represents a good example of differentiation.
Many airlines operate under similar circumstances and share similar
cost structures and routes. Methods of differentiation can include
lowest‐price or on‐time record, and areas such as boarding
procedures, carry‐on policies, airline miles, and social media can drive
customer loyalty. The example of Southwest Airlines illustrates how
putting people first creates a solid marketing position. It is important
to identify the opportunities that increase a product or service’s
perceived value to the customer (Smartsheet, n.d.).
Another example is the American steel industry, which consists of
large, vertically integrated carbon steel makers. Some of the steel
companies are integrated from ore mining to finished products. Their
profitability has been threatened by mini steel mills and imports.
Steel producers must choose either to reduce crude steel production
and focus on flat and specialty steel products, or cut costs. The
value‐added chain is useful in identifying links that are not cost
For strategies driven by product differentiation, the value‐added
chain is best defined in terms of the contribution of each link to
market value. This method helps identify the product attributes
preferred by consumers and links them to the value‐added activities
in the chain that generate this attribute.
However, assets that underlie the production of these attributes
cannot be easily redeployed along the value‐added chain. There is
also the risk of product or process imitation by competitors.
Companies, therefore, often pursue different strategies. Analysis of
value chains shows that strategy is not just about the selection of
profitable product markets. It is also about investing in the links that
generate the product attribute desired by consumers and which
correspond to the firm’s distinctive competence relative to its
Depending upon the customer preferences and competitors’
strengths, the company can decide to redeploy its assets, pursue its
traditional business, withdraw from the business, or make an
acquisition of the critical assets.
The value‐chain concept is thus useful in isolating the critical success
factors of a strategy. For strategies in competitive industries, the
chain isolates those links that are not currently viable relative to
competition. For strategies of product differentiation, the chain
indicates those links that generate downstream economic rents.
In the global context, the chain of comparative advantage for
countries must be explored.
Smartsheet. (n.d.). The art of value chain analysis: From defining
activities to identifying areas for improvement. Retrieved
Porter, M. E. (1985). The competitive advantage: Creating and
sustaining superior performance. NY: Free Press.
© 2022 University of Maryland Global Campus
All links to external sites were verified at the time of publication. UMGC is not responsible
for the validity or integrity of information located at external sites.

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper