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Accounting data for value chain analysis
Author(s) -
Hergert Michael,
Morris Deigan
Publication year - 1989
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250100207
Subject(s) - competitive advantage , value chain , strategic planning , value (mathematics) , business , resource (disambiguation) , chain (unit) , strategic management , computer science , industrial organization , process management , accounting , supply chain , marketing , computer network , physics , astronomy , machine learning
Strategic planning frameworks provide a means of combining internal data about the firm's capabilities with external information about the competitive environment in a manner designed to guide resource allocation. The value chain approach to strategic planning, as described by Michael Porter in his book Competitive Advantage (1985), is a recent addition to this family of planning frameworks. In this article, we address some of the difficulties in using accounting data for value chain analysis. These difficulties are divided into those that are inherent, because of differences in methods of data accumulation, and those that are avoidable.