It’s essential for any successful organization to monitor its corporate performance in order to manage the health of an organization and help it scale.
The foremost objectives of corporate governance are to make efficient management as well as inspire and strengthen the trust and confidence of the people by ensuring business’s commitment to higher growth and development.
The value chain is a powerful tool for disaggregating a company into its strategically relevant activities in order to focus on the sources of competitive advantage, that is, the specific activities that result in higher prices or lower costs.
A company’s value chain is typically part of a larger value system that includes companies either upstream (suppliers) or downstream (distribution channels), or both. This perspective about how value is created forces managers to consider and see each activity not just as a cost, but as a step that has to add some increment of value to the finished product or service.