AFM333 Chapter Notes - Chapter 9: Global Value Chain, Value Chain, Human Resources

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM333
• Professor: Seth Brouwers

Document Summary

Value chain: one page framework depicting the operating model of a company: primary and support activities to deliver its product or service to market and generate value. Value chain components: primary activities: key activities that bring a company"s product or service to market, r&d, supplier sourcing, production, distribution, logistics, marketing, sales and service, need to be determined for each industry or company within an industry. Support activities: vital to the successful execution of a business, but don"t contribute directly to bringing the product or service to market: finance, hr, it, admin. Impact of global value chains: production process crosses more than one country, two thirds of trade, hours worked per high skilled persons decreasing. Skilled labour wages increasing: skill biased technical change, downward pressure on jobs and wages for low skilled, multinational companies and skilled workers are the winners, redistribution policies needed.