Question

Conduct a value chain analysis of Diageo, focusing on ways in which Diageo differs from competitors. (please write in your own word, not from other website)

Answer 1

The appropriate level for building a value chain analysis of Diageo is a business unit, not a division or a corporate level. Products cross the chain of action in order and with each activity the product receives a certain value. The chain of action gives the product more value than the sum of the added value of all the activities.

The diamond cutting action can show the difference between price and value chain. The cut action may be low cost, but the added value of the final product is because the rough diamond costs less than the cut diamond. Typically, the value chain described and the documentation of the process, evaluation and audit of the implementation of the procedure are the basis of the business quality specification, for example ISO 9001.

The company's value chain of Diageo is part of a greater flow of activity, which Porter calls the value system. An industry value system or value chain includes suppliers that provide the necessary resources to companies along with their value chain. When a company makes a product, these products go through the distribution chain (which also has its own value chain) to all customers. All parts of these chains are included in the value system. To gain and maintain competitive advantage and support this advantage with information technology, companies need to understand each component of this value system.