Question

“Value Profit Chain is based on value equations for customers, employees, partners and investors”. Discuss the statement.

Answer 1

This is one of the strategies for gaining competitive advantage over the rivals which is related to gaining effeciencies through customers, employees, investors and the like. The framework stresses the interrelationships between these group of people. The Five value chain virtues are : Leverage, Fit , Focus, Adaptibility and Trust. The customers being satisfied with the concerned organisation will help reduce the turnover ratio. If the company achieve desired level of behaviours with customers and employees, the investors would stay in the company.Thus this approach will helf organisation increase efficiency, effectiveness of activities and profitability.