How do you manage the value chain?


In this section, I will illustrate the principles introduced in this chapter with three kinds of decisions related to the management of the value chain. These decisions consist in deciding the activities the companies decide to do or not to do:

  • Make or buy a component;
  • Sell or process further a product;
  • Keep or drop a segment.

These decisions are to some extent long-term decisions. Nevertheless, under the circumstances in which we will address them, differential analysis provides an appropriate guidance.