Scribd Logo
Upload

Welcome to Scribd!

  • 157 views

    Akuntansi Manajemen Bab 7

    Uploaded by

    Dik Habib
    Value chain analysis is a tool developed by Michael Porter to help businesses analyze their cost structures and identify competitive strategies. It involves examining all activities within a business, from procurement of raw materials to delivery of the final product, and identifying which activities add value for customers. Porter proposed that a firm's value chain is composed of primary activities like operations, logistics, marketing, and service, as well as support activities like procurement, HR, technology development, and infrastructure. A corporate value chain differs from an individual product chain in that it examines synergies across different product lines and business units. Management accounting needs to evolve from traditional cost analysis to a forward-looking strategy cost analysis to provide information on non-financial and external factors crucial for long

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Akuntansi Manajemen Bab 7

    Uploaded by

    Dik Habib
    157 views3 pages
    Value chain analysis is a tool developed by Michael Porter to help businesses analyze their cost structures and identify competitive strategies. It involves examining all activities within a business, from procurement of raw materials to delivery of the final product, and identifying which activities add value for customers. Porter proposed that a firm's value chain is composed of primary activities like operations, logistics, marketing, and service, as well as support activities like procurement, HR, technology development, and infrastructure. A corporate value chain differs from an individual product chain in that it examines synergies across different product lines and business units. Management accounting needs to evolve from traditional cost analysis to a forward-looking strategy cost analysis to provide information on non-financial and external factors crucial for long

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Value chain analysis is a tool developed by Michael Porter to help businesses analyze their cost structures and identify competitive strategies. It involves examining all activities within a business, from procurement of raw materials to delivery of the final product, and identifying which activities add value for customers. Porter proposed that a firm's value chain is composed of primary activities like operations, logistics, marketing, and service, as well as support activities like procurement, HR, technology development, and infrastructure. A corporate value chain differs from an individual product chain in that it examines synergies across different product lines and business units. Management accounting needs to evolve from traditional cost analysis to a forward-looking strategy cost analysis to provide information on non-financial and external factors crucial for long

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    157 views3 pages

    Akuntansi Manajemen Bab 7

    Uploaded by

    Dik Habib
    Value chain analysis is a tool developed by Michael Porter to help businesses analyze their cost structures and identify competitive strategies. It involves examining all activities within a business, from procurement of raw materials to delivery of the final product, and identifying which activities add value for customers. Porter proposed that a firm's value chain is composed of primary activities like operations, logistics, marketing, and service, as well as support activities like procurement, HR, technology development, and infrastructure. A corporate value chain differs from an individual product chain in that it examines synergies across different product lines and business units. Management accounting needs to evolve from traditional cost analysis to a forward-looking strategy cost analysis to provide information on non-financial and external factors crucial for long

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    VALUE-CHAIN ANALYSYIS AND ACCOUNTING

    Value-chain concept: What Is it and what does it offer?


    Michael porte 91980, 1985) has develop this value-chain concept as a tool to help business analyse their
    cost structures and identify competitive strategies.
    Value added analysis and value-chain analysis: how do they differ.
    Value added analysis involves classifying activities as value added or non-value added. This concept is
    adopted to identify which activities to keep and which to eliminate. The following activities in
    organizations and not to add value to the core activities: preparation time; waiting time; unnecessary
    process steps; overproduction; rejects; set-up times; transportation/distribution; process waste;
    material waste; communications; administration/decision-making untidiness; bottlenecks; and timing
    (Morgan and Murgatroyd, 1994).
    Porters value-chain framework: applying it to the business for excellence
    Porter proposes to extend value-chain analysis beyond the value chain of the business to consider a
    linkage with suppliers and customers, as well the value chain of competitors. Porter proposes that firms
    value chain is composed of nine categories of interrelated activities. These activities are in part as
    following
    1. Primary Activities, includes:
    a. Inbound logistics activities
    Involve managing inbound items such as raw materials handling and warehousing
    b. Operations activities
    Involve the information of inbound items into products suitable for resale.
    c. Outbound logistics activities
    Involve carrying the product from the point of manufacturing to the buyer as warehousing
    and distribution.
    d. Marketing and sales activities
    Involve in informing buyers about products and services with a reason to purchase, such as
    distribution strategy and promotional activities, including advertising.
    e. Service includes all activities
    Required to keep the product or service working effectively for the buyer, after it is sold and
    delivered.

    2. Support Activities
    In Support of the above primary activity of the value chain, porter proposes for support
    activities:
    a. Procurement (Purchasing)
    b. Human resource management (HRM)
    c. Technology development (R&D)
    d. The firms infrastructure (accounting, finance, strategic planning, etc)

    Corporate value chain: what is it and how does it differ from an individual products value chain?
    Wheelen and Hunger (1998) propose the following steps in a corporate value-chain analysis:
    1. Examine each product lines value chain and consider its strengths and weaknesses.
    2. Examine the linkage within each product lines value chain. Linkages are connections between
    the way one value added activity.
    3. Examine the potential synergies among the value chains of different product lines or business
    units. Each value element has an inherent economy of scale in which activities are conducted at
    the lowest possible cost per unit of output.
    MANAGEMENT ACCOUNTING SYSTEMS IN THE VALUE-CHAIN FRAMEWORK
    Traditional management accounting systems have been critised for a greater internal focus within which
    a key theme is to maximise the defference between purchase and sales. There is the view tthat
    traditional management accounting does not give adequate information on non financial and external
    factors crucial to the long term survival of the firm. The challenge, therefore, involves management
    accounting moving way from a traditional managerial cost analysis to a forward thinking strategy
    cost analysis or strategy management accounting (shank and Govindarajan, 1992a, 1992b, 1993,
    hoque, 2001).
    According to porter (19850, a value-chain cost management methodology involves the following steps:
    1. Identify the value chain, then assign cost, revenues and assets to value activities
    2. Diagnose that cost drivers regulating each activity
    3. Develop sustainable competitive advantage, either trough controlling cost drivers betters that
    competitors, or by reconfiguring the value chain.



    Five strategy choice that a firm must make about its underlying economic structure:
    1. Scale
    The size of the investment in manufacturing, R&D and marketin resource
    2. Scope the degree of vertical integration
    3. Experience
    How many item in the past has the firm already created and what is it doing again?
    4. Technology
    What process technologies are used in each step of the firms value chain?
    5. Complexity
    How wide a line of products or service is being offered to customers?


    The cost drivers may includes:
    1. Workforce involvement
    2. Total quality management
    3. Capacity utilization
    4. Plant layout efficiency
    5. Product configuration
    6. Linkage with suppliers and customers

    You might also like