Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 59

Follow-up to 2-57; Value Chain for Financing Auto Purchases

Required Consider the comprehensive value chain in Problem 2-57 and complete a value chain for the financing portion of the value chain only. Use a value chain with four to six steps, beginning with the application for a loan by the car buyer and ending with the car buyer completing the loan and purchase.

Step 1 of 2

Value chain analysis is a detailed strategic analysis tool. It helps to recognize the firm’s competitive benefits. It helps to do a detailed analysis of the places where customers can increase or scope of cost reduction. It gives a better understanding of the linkage with suppliers, customers, and similar firms in the industry. There are three main phases of the value chain are upstream, operations, and downstream.