Value chain and globalization Essay

IntroductionThe process of corporate life is al slipway a ocean change and some clips there ar high tides and some propagation are quiet times. Day to daytime companies are faced with new ch totallyenges, whether it be a consolidated cheek or a microscopical logical argument just starting, always emerging issues that affect their behavior and their performance. Owing to the consequences of an impressive development of engineering science and globalisation that we are living in this age. Nowadays are faster changes, new challenges threaten poorly survival of organizations, new foreign competitors, mobilization of capitals, difficulties in retaining human capital and changing technologies are elements that require managers to be prepared for change and have major power to spark off employees in order to have uninterrupted renewal. Micro and small enterprise dominated industries have been some(prenominal) threatened and provided with advantages as a outcome of dynamic trend s related to globalization (Kula et al., 2006). Value range of mountains is not only to implement new circumspection models that ultimately prove to be only uncertain.However, management of change consists of lay claim advantage of changes in business environment for the inte take a breath of the organization. That is why companies should not only be flexible, but also managers should develop a keen sense to anticipate change therefore companies will be able to get hold of to be at the forefront. According to Porter (1998) Activities provide the bridge between strategy and implementation. When strategy was defined in terms of broad positioning concepts, a clear separation between strategy and structure was purposeful and useful. Innovation is everywhere and organizations that are not renewed will hardly be able to survive. Firstly, it should be noted that the purpose of this essay is that I want to explain what is the foster chain, its rival to the companies and the impact of globalization to the value chain. Afterwards, I will explain the following s even out major issues have had signifi abidet impact of globalization on the value chain.History of the value chain and consistingFirst of all, the value chain is a theoretical model to describe the development of the activities of a business generating value to the final customer. The value chain was described by Michael Porter. He defines thevalue as the sum of the perceived benefits customer receives of low be to acquire and use product or service Value is the amount buyers are willing to pass for what a firm provides them. Value is measured by total revenue, a reflection of the price a firms product commands exceed the cost involved in creating the product. (Porter 1998). At the same time value chain is essentially a form of analysis of business through which a caller-out is split up into their constituent lead offs, and we can seeking to identify sources of advantage. Simultaneously, it is creatin g the competitive advantage that is achieved when fellowship develops and integrates activities of its value chain less expensive and better variousiated than their competitors.Therefore value chain of a company is formed by all its added value generating activities and the margins they contribute Competitive advantage in regard to products and service takes two possible forms. The commencement ceremony is an offering or differentiation advantage. I f customers perceive a product or service as superior, they become more willing to pay a subsidy price relative to the price they will pay for competing offerings. The second is a relative low-cost advantage, which customers ingest when companys total costs undercut those of its average competitor (San Miguel, 1996). Sometimes change times in business can generate fear, but beyond fear, managers must generate within their companies the ability to bring about change. When it comes to making changes to the companies and this usually means the introduction of new procedures, staff or ways of working that directly affect those around the organization employees, shareholders, suppliers, customers.Therefore managers have two options to deal with the changes. The first option is intimidated by the changes and remaining still or the second option is to understand what is leaving on, develop strategies and implementation to deal with change. Competitive Advantage provides the architecture for describing and assessing strategy, linking it to company behavior, and understanding the sources of competitive advantage. It provides the introduction needed to go deeper. (Porter 1998)According to Kula (2006), Globalization is a process by which people, companies, goods and services, capital and education and ideas are exchanged across international boundaries, is shaping opportunities for growth and poverty reduction in developing countries. In the current contextof globalization, the trend toward merging business grows inc reasingly harder. Therefore, it is very important to cooperation of all employees of organization in a chain and they sharing common vision for business quickly translate into triumph factors. Where employees are involved to this vision therefore they will be more productive and more collaborative mechanisms bind them to other actors in the chain, the greater the chance of survival and progress towards economic development processes.Moreover, companies be to fence with other companies in the same country and in the same way, companies of the same country move to compete with companies in other countries a cause of globalization. Therefore, competition among global companies are strongly and should sustain highest level of professional competence and for this reason heads of companies should pick out as renew companies every day to kindle high return. A good example about this information is the competence between Procter and Gamble and Unilever both are global companies and bo th offer similar products. In the case of my country In Mexico are both companies all(prenominal) one have both have braggart(a) factories and corporate offices the number of employees is large and both have many processes to manufacture both products, as well as quality and administrative. chief executive officers of each company must be updated on how to improve processes in each part of the business, the should evaluate the process and trying to reduce as many errors and waste in order to offer the best products and the best price cheaper for the end customer.So also promote more featuring your product compared with the rest of their competition, as to promote values, social responsibility, brand linkage and sometimes prizes and raffles. Another key point, managers of big companies kip down that linking brand starts when people are young children and this is why, one of their main sector of society are children. Because marketers know that if a child comes to impregnate a bra nd in in their childhood, they will take for all their life and therefore they will transmit to their offspring in the future. I see this reflected in my case, since I always prefer to drink Coke when I am eating and I never care Pepsi since my childhood, this is because since my childhood always drank Coca-Cola by the influence of my mother.To date I still drink coke, this is an example of how a global company that has implemented the value chain in their structural processes relevant their product has do in my life. For a firm to achieve superiordifferentiation, it must utilize the best mix of resources in creating value for its customers. In order to prioritize its processes as sources of differentiation, a company must determine what attributes of each process enhance customer value (San Miguel 1996).ConclusionIn addition, to doing this research, I could find relevant information about the significant role that is playing the value chain into companies. The purpose of the essa y is to provide sound judgment the role that could be obtained in business when is used the value chain process in the different departments of a company. The administration of change is of great importance, since it allows control of the transformation process. but in most organizations even greater challenge is managing change so that through leadership can attack low productivity, motivate the actions needed to alter behavior in a meaningful way and make the change take root in infusing culture and values of the business. It is of primary importance that business leaders must be updated and catch up on new models and theories about management, change and value chain.To be able to compete with the variety of existing competitors in business territory. In Conclusion, there is no possibility that organizations can achieve competitive goals, if the people who are not found suitable from the point of view of training and attitudes, to acquit on. In essence, organizations today empha size the ability of leaders to manage their staff. Therefore, people will go to those who can prove they have the will and capacity to meet their needs, enhancing their strengths and improving their skills. Thus man becomes the protagonist of the supremacy of any business strategy.ReferencesSan Miguel, J, 1996, Value chain analysis for assessing competitive Advantage. Institute of Management Accountants. Canada. Staying competitive in the global economy (2008) Secretary-General of the OECD