1. Smart Chip Company; Value Chain
Victoria Rock
Unit 5DB
The six requirements for Value Chain Management can be used to help this company remain
competitive. There are specific benefits that effective value chain management which can bring
improved procurement, improved logistics, enhanced customer order management, and improved
product development.(netMBA, 2010) By using the six requirements of value chain management, Smart
Chips Company can benefit.
The first step is coordination and collaboration. (Robbins, S., Coulter, M., 2011) Smart Chips
Company should have close coordination and collaboration with its suppliers, dealers, and customers.
With close coordination and collaboration with suppliers, they will be able to get supplies at the lower
price and more appropriate time. Having this same close coordination with their dealers and customers,
they will be able to manufacture chips which are required to make timely and accurate deliveries. The
second step, investment in information technology will allow Smart Chips Company to remain in close
coordination with its suppliers and customers. By allowing closer coordination and collaboration, it will
enable them to match customer needs more closely. (Robbins, S., Coulter, M., 2011)
Another step would be in the organizational processes. These processes should be supported by
cross functional teams that will enable the streamline of processes allowing them to be more flexible
and responsive to the customers’ needs. An important component is a committed leadership which
should provide direct support to the process and insure that it is continually improved. (Robbins, S.,
Coulter, M., 2011) After this they should adapt flexible and adaptable jobs, and capable employees.
Flexible jobs allow the employees to be responsive to the needs of the market and changes in
competition. In order to have capable employees, they need to make sure their recruitment, training,
development, and promotion policies are geared towards developing high quality employees. Finally
they should develop a supportive organizational culture that not only supports its employees, but also
the policies and strategies of the company. The employee’s attitudes towards the market place should
be that of supporting the company’s products and developing collaboration with dealers and customers.
(Robbins, S., Coulter, M., 2011)
In the long run by using the components of value chain management, the Smart Chips Company will
be able to compete with clone chips and manage to earn attractive profits, increase the length of time
between its launch and the appearance of clone chips, erect barriers with information technology,
reduce cost, and use its flexible employees and responsiveness

2. Reference
Robbins, S., Coulter, M.,(2011)Managing Operations. Management. Chapter 18, (p 424-444). Pearson
Prentice Hall. Retrieved; October 31, 2011 from; https://mycampus.aiu-
online.com/pages/MainFrame.aspx?ContentFrame=/Home/Pages/Default.aspx