What is Value Chain Analysis

This chapter examines two approaches to the concept of management and the planning process: firstly the approach proposed by Bailey and Peak and secondly by Sorensen. Bailey and Peak present a review of all business functions to determine the competency of each function and then suggest a number of research and analysis techniques for reviewing the finances and the various external interactions with the organisation from competitors. Sorensen proposes using the resource-based view to analyse the competitive situation, followed by creating the business model and then developing the planning documents for business development. Sorensen asserts that ‘what the customer values' is a focal point of the approach to business development. The internal strength and weakness analysis investigates the value chain, processes, resources, and capabilities, and the external opportunities and threat analysis review customers, market, and competitors.