Value Chain Term Paper Example | Topics and Well Written Essays - 1500 words

Value Chain - Term Paper Example The company aims to achieve its mission and vision by fulfilling the needs of varied customers spread at different locations globally. The company ensures that it provides the best quality products at the best and affordable prices which are further accompanied with best services within the industry (Ashley Furniture Industries Inc, â€Å"A Proud History and Poised for a Formidable Future†). Thesis Statement The paper critically identifies the value chain activities practiced by Ashley Furniture Industries, Inc and briefly recommends on various core areas of the company in relation to value chain. Value Chain and Ashley Furniture The term ‘Value Chain’ was first coined by Michel Porter in his famous book ‘Competitive Advantage’ in 1985. The analysis of value chain identifies the activities performed by an organization and further relates them with the organization’s competitive strengths. Porter identifies primary and secondary activities as th e two major activities essential for value chain analysis. He further grouped the primary activities into five sub-heads including inbound logistics, operations, outbound logistics, marketing and sales and services which are concerned with the value creation as well as delivery of products. Similarly, secondary activities are also grouped into four sub-heads namely, human resource management, technology development, infrastructure and procurement. The secondary activities help organizations to enhance the efficiency and the effectiveness of the overall organizational operations (Food and Agriculture organization of the United Nations, â€Å"The Value Chain†). The basic model of value chain is being represented below: Source: (Food and Agriculture organization of the United Nations, â€Å"The Value Chain†) Primary Activities Inbound Logistics Ashley Furniture aims to produce world class durable furniture in attractive designs and affordable prices. Furthermore, the comp any ensures that by no means are its product qualities compromised; and customers receive value for their investment made in terms of durable and finished products. The company has partnered with best class suppliers for the supply of a variety of components required for the manufacturing of the furniture products. In addition to this, the company has the largest air-ride truck fleet in the industry which can be evident on the highways of Wisconsin (Wisconsin Manufactures and Commerce, â€Å"BPES-Ashley Furniture†). The tractors involved in the transportation of required components for the manufacturing process are equipped with auxiliary power units that result in less consumption of fuel almost by 10 percent. Additionally, the company is also striving to procure materials locally in order to reduce the cost of transportation and thereby offer its products at affordable prices to its discriminating customers (Ashley Furniture Industries, Inc, â€Å"Ashley World Class Furnit ure Company†). Operations Ashley Furniture has more than 250 acres operating space for manufacturing and distribution throughout the world. It has the biggest casegoods production related plant in the United States. The company sells furniture in more than 123 countries around the globe. The major regional manufacturing and

Response to Coments on DQ1 Smith and DQ2 Smith,WK2 Essay

Response to Coments on DQ1 Smith and DQ2 Smith,WK2 - Essay Example A way to determine whether the debt balance of a company is bad is by calculating the debt ratio and the current ratio. The debt ratio shows the ability of a company to pay off its long term debt, while the current ratio demonstrates the ability of a firm to pay off its short term debt. DQ2 The use of cash based accounting is more suitable for small operations that are highly dependent on the short term income to stay in business. An example would be a hot dog vendor. The hot dog vender uses the weekly sales to purchase more material to operate the next week. The hot dog vendor collects all his sales in cash. The majority of public corporations use accrued based accounting because they deal with large sums of money and numerous transactions. The existence of credit does not work in accounting unless the firm used an accrued based accounting system. In cash based accounting credit is not existent. Despite the differences between cash based accounting and accrued based accounting the a pplication of both systems will lead to the same accounting results. For example if the net income of a company is $10,000 under cash based accounting the use of accrued based accounting will also give a net profit of $10,000.