STRATEGIC MANAGEMENT ASPECTS 4
Avalue chain in an organization is the sequence of activities anorganization has to undertake so as to add value to its products. These activities exist as either primary or support activities.According to Grant(2010),these are the activities that add value to an organization’s finalproducts to make them deliverable to the market. The primaryactivities are those that add value to the product directly. Thismeans that the value they add to the products of a firm can beidentified with the product. Examples include the activities ofdirect production, packaging and other activities of direct labor. Onthe other hand, support activities are those that indirectly addvalue to the product by facilitating its production and delivery. Forinstance, research and development and procurement activities aresupport activities.
Thescorecard concept is a system of strategic planning and managementthat aids in aligning the activities of a firm to its strategy,vision and mission. The balanced scorecard is aimed at monitoring theperformance of an organization against its goals. According toKaplan and Norton (2013), a balancedscorecard is also aimed at improving internal and external process ofan organization towards achieving its goals.
Themain advantage of the balanced scorecard is to enhance thecontrolling function of the management by providing a structures wayof evaluating the performance of a firm. In addition, the balancedscorecard helps in the identification of flaws in an organization byevaluating the processes of a firm against the predetermined goals(Kaplan &Norton, 2013).Moreover, the balanced scorecard helps organizations to retain itsfinancial and operational measures as a way of promotingeffectiveness in a firm.
Grant,R.M. (2010). ContemporaryStrategy Analysis. 7th ed.New York: John Wiley & Sons
Kaplan,R., & Norton, D.P. (2013). Alignment:Using the Balanced Scorecard to Create Corporate Synergies. Harvard:Harvard Business Press