Define: Value Chain

UK Accounting Glossary

Definition: Value Chain


Quick Summary of Value Chain


The value chain is the chain of activities by which a good or service is produced, distributed, and marketed.



What is the dictionary definition of Value Chain?

Dictionary Definition


The value chain is the chain of activities by which a good or service is produced, distributed, and marketed.

 


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Full Definition of Value Chain


Each step of the chain creates different amounts of value for the consumer.

There are 5 value-creating activities:

  • Inbound Distribution
  • Operations
  • Outbound Distribution
  • Marketing
  • After Sales Support

Alongside 4 supporting activities:

  • Buying
  • Research & Development (R&D)
  • Human Resource Management (HRM)
  • Infrastructure of the organisation

For management, the primary application of the value-chain concept is that a company should critically examine it’s costs and performance at each stage, and decide, amongst other things, whether it ‘s best to carry out a particular stage in-house or externally.

The value chain can provide the basis for a strategic analysis in terms of the identification of an competitive advantage.


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https://payrollheaven.com/define/value-chain/
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Value Chain. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 20, 2019 https://payrollheaven.com/define/value-chain/.
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Value Chain. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/value-chain/ (accessed: September 20, 2019).
American Psychological Association (APA):
Value Chain. PayrollHeaven.com. Retrieved September 20, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/value-chain/

Definition Sources


Definitions for Value Chain are sourced/syndicated from:


This glossary post was last updated: 4th May 2019.