In case of mergers and acquisitions the primary aspect with regards to value chain management involves an integration of two different value chains i.e., one of the acquirer and the other of the acquired company. There needs to be certain changes in the value chain that could help in undertaking an overall improvement in the value chain of the organization (Ray, 2010, p.46). In case of Bramble the primary motive behind the acquisition of CAPS is to undertake and utilise the primary and secondary aspects of CAPS’s value chain elements to generate an overall improvement in the value chain of Brambles that would enable it to move up in the value chain. This strategy of the firm is in tune with the popular theoretical belief that every organization has its own sets of key elements that includes internal as well as external factors. In the case of Bramble the company wants to acquire the knowledge and expertise of the primary and secondary elements of the value chain that includes its human resources, fixed assets as well as intellectual property that can help in improving the value proposition of the organization by helping its move up in the value chain (Bertoncelj, 2008, p.3). Figure 1: Value Chain in Mergers and Acquisitions for CGI (Source: CGI, 2009, p.2) The figure above shows how to improve the value chain by undertaking a merger and acquisition strategy. The figure above shows how a procurement based value chain can be used to generate an improvement in the entire value chain of the organization by using the expertise in the primary and secondary activities of the acquired organization. Brambles hope to leverage upon the existing expertise as well as client base of CAPS to generate long term profitability for the organization. Brambles hopes that with the acquisition of a company engaged in downstream activities it would be able to undertake a vertical integration of its business process. This would help in opening up business opportunities of the organization considering the vast and immense potential of the downstream activities. The company believes that with the acquisition of CAPS and the good client base of the organization the company would be able to provide better and augmented facilities both in terms of number as well as quality as the customers would find more facilities under a single roof. This would save the customers time as well as monetary resources that would have otherwise being incurred by taking the services of a different vendor for pellets and container services. This would motivate them to choose Brambles over its competitors as it would be offering greater value proposition to the customers. This would help in generating long term sustainable competitive advantage for the organization in the long run. The vertical integration would also help in generating more value in the value chain (Slide 31-35, Planning and performance in Value chain networks). The acquisition of CAPS would also boost the levels of customer service that would help in enhancing the value proposition in accordance with Holden’s value proposition theory that states customer service as one of the key areas that can be used by organizations to enhance their value propositions. Brambles
VALUE CHAIN MANAGEMENT EXAM PAPER - 4 OUT OF 8 MINI CASE QUESTIONS Table of Contents VALUE CHAIN MANAGEMENT EXAM PAPER - 4 OUT OF 8 MINI CASE QUESTIONS 1 Table of Contents 2 Question1 3 Question 2 5 Question 3 9 Question 4 11 Implications for Value Chain Management Networks 11 Protection of IP 12 Benefits 13 References 15 Question1 Question: Within the context of value chain network theory what is it that Brambles are attempting to achieve?…
Question: Within the context of value chain network theory what is it that Brambles are attempting to achieve? What are the net benefits for Brambles’ customers? The acquisition of CAPS by Bramble represents an attempt by Bramble to move up the value chain by undertaking a company that is engaged in downstream activities.
While forming the strategies, they consider the geographical aspects and cultural peculiarities of the market segment. After the phase of information collection and strategy development, they apply the proposed changes to their five sections of products such as men’s, women’s, kid’s, goods and innerwear.
Various academic theories will be used to underpin the analysis and the findings will be summarised in a brief conclusion. Strategic Planning Issues Strategic planning involves considering the macro and operating environments within which the organisation operates.
Based on this a list can be shortlisted for the most probable suplikers to the bank paper needs. Thirdly, the project manager is required to collect all the data about the inventories and logistics of paper for the bank requirements. Assessing the past performance and requirements, he is required to use to techniques to improve the inventories and logistics of this particular resource required After this, the negotiation and the final selection of the paper supplier can be done in unison with the management meetings and discussions based on supplier past performances.
Nissan, in pursuit of strategy, identified 8 key areas (Appendix 1) one of which was the value chain (Nissan, 2011). The CSR Scorecard (Nissan, 2011) (Appendix 2) helps the company balance its short term goals with long term (CSR) goals which has led to the company’s adoption of Kaizen (continuous improvement) and Kanban (used to gain efficiency in terms of short lead time, hence, prompt delivery to customers in ‘real’ time).
This process should be proactive and responsive to business needs because the business cannot add resources after a capacity problem has happened without impacting performance.
The capacity of a production unit is defined by Tutor2u (2005) as its ability to produce or do that what the customer requires.
Thus, environmental analysis helps managers come up with strategic moves in response to the trends and changes in the current environment.
The degree of rivalry in an industry is usually measured by exit barriers, industry concentration, fixed cost, value added, industry growth, intermittent overcapacity, product differences, switching costs, brand identity, and diversity of rivals.
Assessing the past performance and requirements, he is required to use to techniques to improve the inventories and logistics of this particular resource required
After this, the negotiation and the final