VALUE CHAIN MANAGEMENT EXAM PAPER - 4 OUT OF 8 MINI CASE QUESTIONS Essay

VALUE CHAIN MANAGEMENT EXAM PAPER - 4 OUT OF 8 MINI CASE QUESTIONS - Essay Example In case of mergers and acquisitions the primary aspect with regards to value chain management involves an integration of two different value chains i.e., one of the acquirer and the other of the acquired company. There needs to be certain changes in the value chain that could help in undertaking an overall improvement in the value chain of the organization (Ray, 2010, p.46). In case of Bramble the primary motive behind the acquisition of CAPS is to undertake and utilise the primary and secondary aspects of CAPS’s value chain elements to generate an overall improvement in the value chain of Brambles that would enable it to move up in the value chain. This strategy of the firm is in tune with the popular theoretical belief that every organization has its own sets of key elements that includes internal as well as external factors. In the case of Bramble the company wants to acquire the knowledge and expertise of the primary and secondary elements of the value chain that includes its human resources, fixed assets as well as intellectual property that can help in improving the value proposition of the organization by helping its move up in the value chain (Bertoncelj, 2008, p.3). Figure 1: Value Chain in Mergers and Acquisitions for CGI (Source: CGI, 2009, p.2) The figure above shows how to improve the value chain by undertaking a merger and acquisition strategy. The figure above shows how a procurement based value chain can be used to generate an improvement in the entire value chain of the organization by using the expertise in the primary and secondary activities of the acquired organization. Brambles hope to leverage upon the existing expertise as well as client base of CAPS to generate long term profitability for the organization. Brambles hopes that with the acquisition of a company engaged in downstream activities it would be able to undertake a vertical integration of its business process. This would help in opening up business opportunities of the or ganization considering the vast and immense potential of the downstream activities. The company believes that with the acquisition of CAPS and the good client base of the organization the company would be able to provide better and augmented facilities both in terms of number as well as quality as the customers would find more facilities under a single roof. This would save the customers time as well as monetary resources that would have otherwise being incurred by taking the services of a different vendor for pellets and container services. This would motivate them to choose Brambles over its competitors as it would be offering greater value proposition to the customers. This would help in generating long term sustainable competitive advantage for the organization in the long run. The vertical integration would also help in generating more value in the value chain (Slide 31-35, Planning and performance in Value chain networks). The acquisition of CAPS would also boost the levels of customer service that would help in enhancing the value proposition in accordance with Holden’s value proposition theory that states customer service as one of the key areas that can be used by organizations to enhance their value propositions. Brambles