Learning Outcomes covered in this Assessment:
Learning Outcome LO 4 undertake advanced autonomous professional activities reflecting value chain analysis.
Assessment Criteria 1. Provide a suitable definition of value chain analysis.
2. Explain how Porter's value chain is used to analyze a firm's value chain.
3. Identify various components of value chain analysis.
4. Apply and reflect value chain analysis to a real case firm.
LO 7 demonstrate an awareness
1. Financial regulation
of current research and literature in the theoretical background of service costing.
2. Measuring cost behavior of service firms.
3. Calculations in terms of cost, volume, and profit components.
Case Scenario: You are planning to open a new business in Oman. The proposed business could be a sole trade or partnership form of business. The firm should be based in a service industry. The proposed business requires key aspects, like capital, human resources, cost planning, risk management, etc. The proposed business will be based on a forecasted cost behavior of 5 years from now. Key cost components could include variable cost, fixed cost, mixed cost, etc.
Introduction requirement of the assignment: Provide a suitable name for your proposed business. Mention clearly the capital required (debt/equity) for the proposed business. Also, clearly state the type of industry targeted in your business plan.
Task 1: What do you understand by value chain analysis? Provide a suitable example to support your definition. (LO 4.1)
Task 2: What are the implications of Porter's value chain analysis on your chosen industry type? (LO 4.2)
Task 3: Critically examine various components of Porter's value chain for your proposed business. Use in-text referencing to support your arguments. (LO 4.3)
Task 4: In terms of the current economic and industrial scenario, analyze the firm's value chain and environmental variables influencing the same. (LO 4.4)
Task 5: Briefly discuss the financial regulations applicable to a service industry. (LO 7.1)
Task 6: With reference to your service firm, identify various cost parameters influencing the chosen organization. (LO 7.2)
Task 7: Calculate and project various cost components, reflecting cost, volume, and profit components of your chosen firm. (LO 7.3)