Question on PORTER'S CHAIN VALUE

[umerhusayn]

Dear friends,
I am a student of mechanical engineering. I have 1 course of Industrial MBA in my master's degree. I am stuck in one of the questions in my assignment. I hope someone on forum having MBA background will give me some sort of answers. Response will be appreciated.Here is the question;

QUESTION: Porter’s Value Chain sets out a checklist of key activities carried out by any organisation. It can be used to identify how these activities produce value for the organisation’s customer and how they generate cost for the organisation. Evaluate the role of the value chain in developing and managing strategy.

thankx.

---

Members don't see this ad.

 

[Leviathanius]

Though I'm not familiar with Porter's Value Chain (I'm only in the 1st Year of my MD/MBA), the microeconomics perspective on a situation is likely to be to increase value for the customer until the marginal revenue of the added value equals the marginal cost of providing that value. Question: is this "Value Chain" some sort of sequential order of events or is the 'chain' merely a causal relationship between certain activities and the direct value that they produce?