Part 1

A value chain is a strategic alliance of enterprises in order to achieve a better position in the market for a product or service. Value chains add maximum value at minimal costs. All participants in the chain must deliver value and strive for a common goal.

The chain is connected to suppliers, supply chains and distribution networks. Delivering a combination of products and services to the end customer will create different opportunities that create more chains that can result in global chains.

Value chain analysis can help a business determine which type of competitive advantage to pursue and how to pursue it. Many enterprises will collaborate vertically to get a better position in the marketplace. Through working together, food producers and processors for example, invest in the relationship with a food service or retail customer to better understand the consumers needs.

A successful value chain strengthens the strategic relationship of chain participants and becomes an asset. The asset provides a competitive advantage that is difficult for competitors to copy or substitute.

In the marketplace we usually see 3 different styles of management when it comes to supplying products/services to the consumer.

1. Value chain – members earn a place in the chain by adding value to products. Members are compensated by the level of value added to the product.
2. Supply chain – This tries to find the most efficient method of delivering goods/services to the customer.
3. Demand chain – This is really a reversed look at a chain. It delivers products/services to a market ensuring demand for that product or service. Instead of pushing the product in the marketplace, it pulls the product through the chain. For example, gasoline.

Next week
Part 2 - The first steps to establishing a value chain

Business owners and managers alike find one of the most important daily activities is delegation. As a manager, your job is to get work done through others.

To effectively delegate your marketing and promotions is to increase productivity and efficient operation of your business and allow for growth. Certain tasks may be able to be handled internally by key players. Larger projects or writing a marketing strategy should be overseen by an outside company. Edge works hand in hand with many internal company marketing departments.

1. In order to delegate, you need to manage your own attitude.
Do not judge what another person is capable of accomplishing. Share your plan to delegate work. Ask the delagatee to keep a prioritized list of work. Check back every week to find what is complete, incomplete and planned to be completed. If important taks are not being completed, coach delagatee on productivity, or move the task to someone else.

These additional tasks help people to learn and grow in their job.

2. Plan with the delagatee.
Sit down and plan the task. Questions can be answered and expectations established. Without this, delegation would be unclear.

3. Write it out.
Identify and write the tasks and answers to the items with the delegatee such as:
- detailed task description
- benefits
- training required
- method of tracking task progress
- progress reporting schedule
- authority and responsibility designated to task

4. Follow-up.
Set a schedule for reporting that builds confidence. Delegate right the first time. Delegating wrong gives you undesired results and unacceptable work. This is waste a waste of everyone's time.

If it's time to work with an outside company to allow you to focus on you day-to-day responsibilities, give us a call.