Global value chain

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A Handbook For Value Chain Research

Joaquin Alejandro Gutierrez Carrisoza

Strategic Environment of Government
Edward G. Lewis
October 8, 2011

The purpose of this handbook is to assist researchers in the formulation and implementation of value chain research, especially with a view to developing a policy framework to help producers and poor countries to participate effectively in theeconomy global as well as also try to resolve questions about how we can lessen the disparity between the economies, can also support in trying to cover all the points listed in the value chain.
For example, in timber production should be noted that for the realization of furniture is needed from the inputs of seed, chemicals, equipment, sawn timber, etc (Figure 1).

Figure 1: The forestry,timber and furniture value chain

What is the value chain?
It is that which supports us in describing the full spectrum of activities required to implement a product or service from conception through the various stages of production (involving a combination of physical transformation and the input the producer of several services), delivery to final consumers and final disposal after use.That gives us an analysis of the value chain?

1 .- Dynamic analysis of the relations of the productive sector

2 .- analysis that goes beyond a particular sector, whether by intersectoral or between formal and informal.

3 .- support in environmental policy analysis that helps us to the efficient allocation of resources in the national economy.

Within the document mentions 3 main reasonsfor having a deeper analysis and detail about the value chain, but I believe there are more, that will be detailed throughout the document.

Start with the first reason:
1 .- increasing division of labor and the global dispersion of production of components, systemic competitiveness has become increasingly important. In essence this leads to the ideas of Adam Smith, in which event thatsmall-scale markets allow little specialization in workers, but as that market was expanding the profitability of employing workers and allow each they specialize in specific skills. Paving the way for the introduction of mechanized methods that could be rather simple tasks difficult task, thus ensuring ease of conducting them.

FW Taylor stalls also a theory of "scientific management procedures," it wasgood and we dominated in the 1890s to the 1970s, with the first examples of electronically automated processes, where machines were viewed as "islands of automation. "But like all good things, also has its down side, this theory began to have problems when companies began to pull over for a more systematic thinking and the application of the "just in time" that the road to "islands of efficiency"often brought bottlenecks and systematic inefficiency. So it was important that sometimes arises tolerate the "inefficiency" in a particular point in the production line rather than keep pushing to the next level and have a backlog.

A clear example was in the early 1970 with Toyota, with the development of "just in time", total quality management and continuous improvement in its processes.Another clear example was in the U.S., who developed the core of thinking about the competition, which was based on firms should concentrate on those resources they possessed and which were relatively unique, giving the customer a valuable service and difficult to copy

2 .- The second reason for analyzing the value chain is to understand the advantages and disadvantages of companies andcountries that specialize in production rather than services and as producers who are connected to final markets can influence participation in global markets.

And as in the last two decades of the twentieth century, production was increasingly led by foreign-owned corporations, as was the case in particular Mexico, Brazil, Hong Kong, Malaysia, Singapore and Thailand due to low cost of power...
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