Value chain management examines every activity that contributes to designing, producing, marketing, delivering and supporting a product or service. It helps an organisation understand where value is created, where cost or delay accumulates and which capabilities provide a competitive advantage.
A value chain analysis begins by mapping the important stages, participants, assets, risks, information flows and performance measures across the business. Management can then identify duplication, bottlenecks, weak controls and improvement opportunities. The resulting programme may reduce cost, improve productivity, strengthen customer outcomes and support long-term profitability.
For multinational enterprises, the analysis can also connect the operating model with tax, transfer-pricing and legal considerations. Any proposed structure should reflect commercial substance, applicable law and the actual functions, assets and risks of each entity.

