Value chain management

The second assessment of the course is about practical aspects of value chain management. Interaction and integration of customer value with operational capabilities is the focus point of this coursework. 

Students are required to prepare a portfolio which will examine a value chain management area of their choice. In order to demonstrate understanding of customer expectations and operational issues, students will be expected to compile a portfolio of evidence. To compile this evidence, students will have to broadly follow this approach:- Establish focus, Plan scope and content, Data collection/acquisition; Data Analysis/Synthesis; Portfolio Preparation. The specific activities required of students as detailed in the brief that follows, and the pro-forma sheets that have been prepared to assist with the collection and analysis of evidence are all available electronically from Moodle.

Students must identify a product and/or service which is actively in the market currently or in recent months. Any product or service chosen however must be one which is distributed (though not necessarily exclusively) through physical retail channels (i.e. shops, service providers etc.). Although it is anticipated that most students will concentrate on products/ services within the commercial arena, non-commercial activities (for instance charitable fund raising) where these are associated with a ‘high street’ presence may also be studied.

It is expected, particularly because of the numbers of students taking this course, that some students may choose the same products or services. Where this is the case, students will be expected to produce individual portfolios containing their own, individual, work (data collection, analysis, etc.).

Purpose of Portfolio

Students will be required to explain the customer value for the selected product/organisation, and the way in which that value is delivered to the customer. They will be asked to look critically at the value from the consumer, product/service provider, and value chain points of view. They will be expected (it is a requirement) to undertake primary research of consumers/potential consumers.  Please make sure to read section 5.2.3, 5.2.4, and the Appendix 1 below regarding the University ethics regulations and requirements.  Material that is collected must be relevant to, and referenced within the analysis contained in the portfolio. Material can be either integrated within the main report or placed separately (but referenced) in an appendix (details like research questionnaires, sample sizes & locations etc. can be provided in appendices).

Students should not include any material which has been physically removed from journals or magazines found in university libraries, nor should any material be removed in the first place.

Portfolio style

Students are required either (and preferably) to use the electronic proforma supplied for the main body of the portfolio, expanding the ‘boxes’ as necessary so that the response fits and adding any additional material if necessary as appendices, or to use a business report style (with headings etc.) which picks up on all the elements contained in the proforma. The guidance notes on the pro-forma should be omitted when submitting the work.

An essay-style response is not appropriate to this coursework. Students may use a ‘bullet’ style for their responses in some boxes, but must write in full and grammatical sentences.

Portfolio length

Students should plan to write no more than 4,000 words for this coursework, and may find they can deliver the necessary information in less.

Taking into account appendices the total word-count should be no more than 4500 words.

There are three specific activities you must undertake in order to complete your portfolio:

I. Understanding the value of the product/service for the customer (Pro-forma A): Students will be required to describe the product/service and its value(s) for the customer. The value for the customer can be found (but not limited to) customer expectations and requirements.

Overall information about product/service value for the customer may be found in consumer survey reports, market analyses, or market experts’ keynotes published in specialist magazines or journals. However, apart from that, students are required to collect first-hand data by conducting primary research in marketplace. The research should be focused on customer. Using different methods of research and different instruments in data collection (e.g. interview, questionnaire, etc.) students need to find what the real value of the product/service is for the customer. Quality, availability, delivery time, reliability, flexibility are just few typical values expected by customers. Students can find more values, more details of them, and the importance of each through their primary study.

II. Analysing how the customer value is understood and met by product/service provider (Pro-forma B):

On the basis of the recognised customer value(s) in proforma A, in second part students need to analyse how good the product/service provider is aware and meet those values (expectations, requirements, etc.)

This analysis should be done based on students’ observations, interpretation of product/service provider’s activities, or customer feedback.

Conducting a primary research in this art is NOT compulsory. However, students are not limited to collect the information they need directly from customers of product/service provider.

III. The impact on value chain activities (Pro-forma C):

Based on their understanding of the value of the product/service for the customer, students how providing that value affect the product/service value chain. A list of value chain activities are listed in proforma C. Students are required to discuss how those operations across the value chain is related to the customer value.

Proforma A, B and C are provided in following pages.

The following criteria are considered in marking portfolio coursework:

- Good understanding and description of the customer value.

- Use of appropriate research techniques and evaluation of customer value.

- Analysis of the impact of the customer value on value chain operations.

- Provides own interpretations of the value chain management concepts.

- Provide a concise descriptive commentary and achieves clarity of discussion for each activity 

- Preparation, structure and organisation of the portfolio

- Ability to use good business English.

Pro-forma A

Value of the product/service for the customer

Notes. 

Type of research – i.e. quantitative (sample based); qualitative – in-depth interviews/ focus groups; observational. Include research ‘metadata’ – i.e. sample size, where and when undertaken, criteria for choice of sample etc.

Purpose of research:- what was being tested – i.e. any of – customer requirements, customer expectations, basic customer values, un-recognised customer values, etc.

Conclusions drawn from research: - what do the results mean? What conclusions might be drawn (recognising that research would only be indicative and that far more work would need to be done for a ‘real’ commercial research study)

Post Research review – an opportunity to critique the research purpose – were the right questions asked to  deliver a useful answer, could the research have been undertaken in a different way (using different techniques) – were the right sort of people involved in the research?

Pro-forma B

How customer value is understood and met by product/service provider

Pro-forma C

The impact on value chain activities

Notes – Depending on the objectives, not all processes listed may be impacted. For each process listed you should describe the level of impact on that operations and associated resources (For instance the need to employ large numbers of temporary workers to deliver the product on-time, or the need to redesign existing distribution processes).

In most cases you will have to provide a rationale for the point you are making, and should be prepared to offer evidence in support of this, drawn if necessary from published works (i.e. text books) which should be referenced.

Sales Activities – e.g. changes to sales force type, training, motivation/ remuneration etc.

Accounts, billing and receivables – e.g. changes to accounting software; accounting and billing systems; available payment methods etc., Would include additional product codes, the inputting of revised prices etc.

Customer/ materials/ information – e.g. building and changing databases, data interrogation and analysis suites, MiS etc.

Procurement and distribution – e.g. supply chain management activities, sourcing, etc.

Retail Stock and stores – e.g. activities to support own or third party retail operations

Recruitment – e.g. of specialist staff, of part-time/full-time or relief staff etc.

Design – e.g. the creation/ customisation/ re-design of existing products/ services or internal operations processes or customer support functions etc.

Order fulfilment – e.g. changes to the process by which a customer (or third party retailer) order is handled through to delivery.

Customer service support – e.g. changes to customer service, including operator training, new methods of contact, increased contact etc.