Operational Models for Value Chain Optimization PPT


This PPT slide, part of the 148-slide Strategic Review Approach PowerPoint presentation, titled "Value Chain Options" presents an overview of 3 operational models derived from an analysis of value chain complexity. It outlines a systematic approach to evaluating different strategies based on capital intensity and the potential for simplification within various segments of the value chain.

The slide is structured into distinct sections. The upper part illustrates the value chain stages: Source, Make, Move, and Sell, with specific activities like refining, finishing, and distribution highlighted. This visual representation indicates the flow of goods from raw materials to the final consumer, emphasizing critical points where operational decisions can be made.

Beneath this visual, a table categorizes different operational scenarios: the Base Case and 3 options (Option V1, V2, and V4). Each option is marked with checkboxes, indicating which value chain activities they encompass. The Base Case appears to cover all areas, while Options V1 and V2 introduce additional volume in refining and selling, suggesting a strategy focused on increasing capacity utilization. Option V4 indicates a more drastic measure—exiting the business—highlighting a potential pivot in strategy.

The rationale section elaborates on the criteria for assessing these options. It emphasizes the importance of understanding capital intensity and the complexity of operations, suggesting that simplifying certain areas could yield significant benefits. The selected value chain options aim to refine operations and enhance capacity, which could lead to improved efficiency and reduced costs.

This slide serves as a foundational tool for decision-makers, providing a clear framework for evaluating operational strategies that align with business objectives.




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Strategy Development Example Restaurant Industry Value Chain

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