Value to the goods, they nonetheless understand that this is what happens, that is, that firms process goods to be sold to the customers (Folsom, 2005). For instance, it is not hard for an average person to understand that steel firms are involved in the processing of steel. However, seeing this process as a value addition, or figuring out that the steel manufacturing firms are actually adding value to the iron ore, can be hard.Value chain and value addition go together. In the text, these two phrases are used constantly. The author assumes that every person reading the text is familiar with the concept of value addition, and therefore, the concept of a value chain. Again here, the term of conflict would be the word chain. An individual who is not aware of the concept of value chain can get the wrong idea of what a value chain is. He can see the value chain from his understanding of what a chain is. If such a person understands the meaning of the word chain based on other context, this concept will not have any rational meaning to him, given the context of business and production in particular. Instead of talking about the value chain, the author could have talked about the stages of production. From there he could have explained and about how manufacturing or production of goods or even services is not done in one step, but rather a series of steps. He could have then explained that these steps do not have to be done by one organization at once but that this can be done by several organizations who do part of the production and then pass on the unfinished product to another firm that then does the next step of processing until the product is finally finished. This way, he could have managed to make it very clear that the process of production is a chain of process that can either be done within one organization or shared among many organizations that work together towards the end of the finished product. By giving this kind of explanation, the author could have made it clear about what value chain means, even without having to use the term value chain. The term value chain and value addition are just concepts or ideas that are used to describe the activities that go on in the production and processing of goods. To explain this may not need one to necessarily talk about value chain or value addition. There is a better way for doing this even without talking about these terms or phrases.Competitive arena is also another concept that is discussed
Cinnamon, R. (2010). How to Understand Business Finance. New York, NY: Kogan Page Publishers.
Folsom, D. (2005). Understanding American Business Jargon: A Dictionary. New Yrok, NY: Greenwood Publishing Group.
Kasperson, R., & Stallen, P. (1991). Communicating Risks to the Public: International Perspectives. New York, NY: Springer Science & Business Media.
Richard, D. (2013). How To Start a Creative Business: The Jargon-free Guide for Creative Entrepreneurs. New York, NY: David & Charles.
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