value chain and baseline analysis

8/10/2019 Value Chain and Baseline Analysis

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Sri Sharada Institute Of Indian Management -Research

Approved by AICTE

Plot No. 7, Phase-II, Institutional Area, Behind the Grand Hotel, asant!un",Ne# $elhi % &&''7' (ebsite) ###.srisii*.or+

Project Reportn

Value Chan Analysis

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Declaration

(e hereby delare that the ollo#in+ pro"et report o

/VA9/6 C3A AA90SIS is an authenti #or0 done by us.

This is to delare that all #or0 indul+ed in the o*pletion o this

#or0 suh as researh, analysis o ativities o an or+ani1ation

is a proound and honest #or0 o ours.

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ACKNOWLEDGEMENT

(e #ould li0e to e3press *y hearty +ratitude to *y aulty

+uide, Prof, S andi or +ivin+ us the opportunity to prepare a

pro"et report on /Value Chan Analysis4 and or his valuable

+uidane #hih helped us in o*pletin+ this pro"et.

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INTRODUCTION

Value Chain AnalysisAchie;ing 6


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3o= to /se the 7ool#

alue Chain Analysis is a three-step proess)

&. Ativity Analysis) ?irst, you identiy the ativities you underta0e to deliver

your produt or servie@2. alue Analysis) Acti;ity Analysis

The irst step to ta0e is to brainstor* the ativities that you, your tea* or

your o*pany underta0es that in so*e #ay ontribute to#ards your

usto*er6s e3periene. At an or+ani1ational level, this #ill inlude the step-

by-step business proesses that you use to serve the usto*er. These #ill

inlude *ar0etin+ o your produts or servies@ sales and order-ta0in+@operational proesses@ delivery@ support@ and so on 8this *ay also involve

*any other steps or proesses speii to your industry9.At a personal or tea*

level, it #ill involve the step-by-step lo# o #or0 that you arry out. But this

#ill also involve other thin+s as #ell.

+or e


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7ip# I you arry out the brainstor*in+ behind the Ativity Analysis andalue Analysis #ith your tea*, you6ll al*ost ertainly +et a riher ans#er

than i you do it on your o#n. ;ou *ay also ind that your tea* is *ore

li0ely to buy into any onlusions you dra# ro* the e3erise. Ater all, the

onlusions #ill be as *uh theirs as yours.ne you6ve brainstor*ed the ativities #hih add value or your o*pany,

list the*. A useul #ay o doin+ this is to lay the* out as a si*pliied lo#

hart runnin+ do#n the pa+e % this +ives a +ood visual representation o yourvalue hain.

Step $ > Value Analysis

No#, or eah ativity you6ve identiied, list the alue ?ators % the thin+s

that your usto*ers6 value in the #ay that eah ativity is onduted. ?or

e3a*ple, i you6re thin0in+ about a telephone order-ta0in+ proess, your

usto*er #ill value a :ui0 ans#er to his or her all@ a polite *anner@eiient ta0in+ o order details@ ast and 0no#led+eable ans#erin+ o

:uestions@ and an eiient and :ui0 resolution to any proble*s that arise.I you6re thin0in+ about delivery o a proessional servie, your usto*er #ill

*ost li0ely value an aurate and orret solution@ a solution based on

o*pletely up-to-date inor*ation@ a solution that is learly e3pressed and

easily ationable@ and so on.Ne3t to eah ativity you6ve identiied, #rite do#n these alue ?ators. And

ne3t to these, #rite do#n #hat needs to be done or han+ed to provide +reat

value or eah alue ?ator.


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Tip) I you have a stron+ enou+h relationship #ith one or *ore o your

usto*ers, it *ay be #orth presentin+ your onlusions to the* and +ettin+

their eedba0 % this is a +ood #ay o either onir*in+ that you6re ri+ht or o

+ettin+ a better understandin+ o #hat they really #ant.

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level o business unit or proess "ust lar+e enou+h to be *ana+ed as a

separate business ativity.

b. Identify the Cost "ri;er1s2 at 6ach Value Acti;ity.A ost driveris any ator that han+es the level o total ost. The ob"etive o this step is

to identiy ativities or #hih the ir* has a urrent or potential ostadvanta+e.

. "e;elop a Competiti;e Ad;antage )y Reducing Cost or

Adding Value,In this step, the ir* deter*ines the nature o its urrent and

potential o*petitive advanta+es by studyin+ the value ativities and ostdrivers identiies earlier. In doin+ so, the ir* *ust onsider the

follo=ing#

Identiy o*petitive advanta+e 8ost leadership or dierentiation9. The

analysis o value ativities an help better understand the ir*s strate+i

o*petitive advanta+e and its proper positionin+ in the overall industry valuehain.

Identiy opportunities or added value. The analysis o value ativities anhelp identiy ativities in #hih the ir* an add si+niiant value or the

usto*er.

Identiy opportunities or redued ost. A study o its value ativities and ost

drivers an help a ir* deter*ine those parts o the value hain or #hih it is

not o*petitive.

E3ploit lin0a+es a*on+ ativities in the value hain. The deision to provide

an ativity internally or to outsoure it is so*eti*es inluened by the #ay

that ativity is aeted by another ativity in the hain. alue-hain analysis

supports the ir*s strate+i o*petitive advanta+e by ailitatin+ thedisovery o opportunities or addin+ value or the usto*er andFor by

reduin+ the ost to provide the produt or servie.


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Value Chan Analysis of +ood And Agriculture of 6


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$, Project *acground

A. Project *acground#

Project ame#Transor*in+ Eastern Indias Eono*ies throu+h InnovativeKural Business Hubs

7imeline) Nove*ber &, 2'&2 to tober 5&, 2'&>"e;elopment Partners) CII ?ACE and J


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i*pat. KBHs *ay *aniest as physial, bri0 and *ortar establish*ents in

their deploy*ent or virtual a++re+ation points, usin+ Inor*ation

Co**uniation Tehnolo+ies 8ICT9. (hile KBH *odels e3ist in various

or*s, o**on *issin+ ele*ents in all o the* are value hain +aps li0e

proure*ent lin0a+es. Althou+h KBH *odels inrease *ar0et aess to:uality-assured a+ri-inputs and ontribute to *ar0et transpareny, they all

short o proitability and thereore are unsustainable unless ne#, innovative

business *odels are developed to better harness ra+*ented resoures andaddress supply and de*and issues aross 0ey value hains.

CII ?ACE #ill stren+then the private setor role in ataly1in+ a+riulture

produtivity #hile inte+ratin+ broader partiipation in selet a+riulture value

hains in order to inrease ar* ino*es throu+h inlusive eono*i +ro#th.

Jnder this ativity CII ?ACE #ill help i*prove produtivity o s*all and *ediu*

landholders and inrease ino*e levels throu+h inlusive +ro#th by ta0in+

suessul *ar0et-driven KBH *odels and innovations to sale. CII ?ACE #ill

build upon the KBH invest*ents established throu+h the Consultative Group or

International A+riulture Kesearh 8CGIAK9 Collaborative Kesearh


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hain. This #ill inlude supply o a+riultural inputs li0e seed, ertili1er, pest

*ana+e*ent and *ehani1ation, *ehani1ation servies, e3tension servies,

inane and *ar0etin+ servies, a+ro-proessin+, and *ar0etin+ and

proure*ent syste*s

CII ?ACE KBH #ill develop business *odels to address +aps in the

a+riulture value hain #ithin the onte3t o i**ature, developin+ and

*ature *ar0ets.

', O;erall Conte


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ar*ers ino*es. ?or e3a*ple, use o tehnolo+y or prie disovery,

#eather inor*ation and other si*ilar suh servies. These servies

ould inlude settin+ up o ICT solutions, *onitorin+ reation o de*o

ar*s, on ar* produtivity aross the value hain, produtivity

trainin+s and trainin+s to hub entres.

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8, Scope of 4or and "eli;era)les > *AS69I6 S7/"0 A" S/PP90

C3AI ASS6SSM67

A, Scope of 4or#

Acti;ity# Value Chain Analysis

O)jecti;e# Conduct ;alue chain analysis for *anana and Vegeta)les ;alue

chain in 4est *engalB and *ihar respecti;ely,

7imeline) (ithin t#o *onths ro* the ti*e o a+ree*ent.

Area#North Eastern Ke+ion - (est Ben+al, and Bihar

Profile of OrganiEations) Kesearh or+ani1ation, eduational institutions

Commodity# Bein+ identiied in eah state throu+h parallel proess

Value Chain acti;ities) The alue Chain analysis loo0s at the #hole proess

o eetive utili1ation o resoures to reate a o*petitive advanta+e that

#ould provide a lo#er ost and better i*proved proit *ar+in. alue addition

tends to reate the ollo#in+)

Identiyin+ the speii o**odities or value hain Eono*ies o sale

Capaity utili1ation

Din0a+es a*on+ ativities inludin+ vertial inte+ration

Dearnin+ proess

Interrelationships a*on+ business units

ar0etin+ outlets

alue hains eno*pass the ull ran+e o ativities and servies re:uired to

brin+ a produt or servie ro* its oneption to sale in its inal *ar0etsL#hether loal, national, re+ional or +lobal. alue hains inlude input

suppliers, produers, proessors and buyers atively supported by a ran+e o

tehnial, business and inanial servie providers.

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The *ain purpose o this intervention is to arry out an analysis and

assess*ent o potential value hains and lin0a+es in the a+riultural and a+ro-

based setor. This #ould reate a plator* or develop*ent o a blue-print or

stren+thenin+ o value hain ro* ar* to or0 ativities.

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Ho# *uh inrease in ino*e is e3peted to result ro* the CII

?ACE intervention 8tar+et and attribution esti*ation9=

Ho# *uh inrease in produtivity is e3peted to result ro* the

CII ?ACE intervention

Ho# *uh derease in post harvest loses is e3peted to resultro* CII ?ACE interventions

(hat are the 0ind o inanial instru*ents and ris0 *ana+e*ent

strate+ies are re:uired to ensure stren+thenin+ o value hain

(hat are opportunities or syner+ies due to inte+rated

approahFallianes #ith other or+anisations atively supportin+that value hain=

Kis0 analysis

Baseline study results #ith su++ested indiators or *easurin+the outo*e ater t#o years o the pro"et

Responsi)ilities of the *idder

The hosen ontrator #ill be responsible or or+ani1in+ and *ana+in+ the

lo+istis o ondutin+ the ield#or0, inludin+ the provisionin+ o a tea* o

intervie#ers apable o ad*inisterin+ the :uestionnaires in loal lan+ua+e@

the provision o transport and lod+in+ o the tea*s o intervie#ers durin+ theield #or0@ proessin+, ondutin+ basi analysis and presentin+ in a

pa0a+ed report to CII ?ACE or urther analysis and reportin+. Theintervie#ers and their supervisors should be able to o**uniate luently in

8loal lan+ua+e9. All intervie#ers need to be able to read and #rite in loal

lan+ua+e as #ell.

The bidder need to speiy survey *ethods alon+ #ith details o the sa*ple

or eah survey instru*ent #hih they usually onsider appropriate.

Responsi)ilities of CII +AC6#

&. CII ?ACE #ill provide overall *ana+e*ent, tehnial inputs as and #hen

re:uired, partiularly in the areas o inali1in+ the study instru*ent, and

+uidin+ the analysis and baseline study at several points.

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2. Provide a list o and a *ap o pro"et sites in three re+ions

5. Provide introdution o ield investi+ators to the sites, and on-site support

to the* throu+h CII ?ACE ield oies.

V, CostsProvide ite*i1ed osts or the total sope o this pro"et, based on the sope

o #or0 and deliverables outlined in


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Proposals #ill irst be evaluated ro* a tehnial standpoint. Those

proposals that are onsidered to be tehnially aeptable shall then be

evaluated in ter*s o ost. Eah tehnial proposal #ill be evaluated based on

evidene o the ollo#in+ ite*s)

Note) CII reserves the ri+ht to inlude additional riteria.

2'

CRI76RIA Scores

76C3ICA9 CRI76RIA 1'( points2

Proposals relets understandin+ o pro"et and the sope o #or0 in the K?P

Proposal illustrates 0no#led+e o value hain analysis and baseline survey *ethods

alon+ #ith details o the sa*ple or eah survey instru*ent #hih is usually onsidered

appropriate

Clearly de*onstrates 0no#led+e and understandin+ o the value hain analysis and

baseline :uestions and ob"etives aross the value hain and an "ustiy the seleted

*ethodolo+y or *eetin+ the stated ob"etive8s9 as outlined in the


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VIII, Instructions for Responding

A, CII contacts#

Proure*ent Contat) Tarun Tandon 8tarun.tandonQii.in9

TehnialFPro+ra* Contat) eetu !apur 8*eetu.0apurQii.in9

", Proposals due# May &HB $%&'

Co*pleted proposals in the or*at belo# should be sub*itted by e*ail to the

ontats listed above. The sub"et line o the e*ail should read)

7ransforming 6astern India@s 6conomies 7hrough Inno;ati;e Rural

*usiness 3u)s

r+ani1ation $esription

Period o Peror*ane

ethodolo+y o ontribution to the ob"etives as outlines in setion I

(or0 plan and deliverables

anpo#er re:uired to ondut the value hain analysis and baseline

study

Bud+et inludin+ ontributions 8in ash or 0ind9

6, Selection of short-list

CII reserves the ri+ht to selet a short list ro* the bids reeived. CII has the

option to intervie# and disuss speii details #ith those a+enies #ho areon the short-list.

+, Conclusion of process

Appliants #ill be notiied o CIIs deision in May $%&'. ?inal a#ard issub"et to the ter*s and onditions inluded in this soliitation, as #ell as

suessul inal ne+otiations o all appliable ter*s and onditions aetin+

this #or0.

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ID, 7erms and Conditions of the Solicitation

A, otice of non-)inding solicitation

CII reserves the ri+ht to re"et any and all bids reeived in response to this

soliitation, and is in no #ay bound to aept any proposal. All the #or0produed under this K?P #ill be sole property o CII ?ACE.

*, "ata

All the ra# and inal data olleted by the or+ani1ation #ill be handed over to

CII ?ACE in sot and hard opies.

C, Confidentiality

All inor*ation provided by CII as part o this soliitation *ust be treated as

onidential.Proposals, disussions, and all inor*ation reeived in response to this

soliitation #ill be held as stritly onidential, e3ept as other#ise noted.

", Communication

All o**uniations re+ardin+ this soliitation shall be direted to

appropriate parties at CII indiated in


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CII does not represent, #arrant, or at as an a+ent or any third party as a

result o this soliitation. This soliitation does not authori1e any third party

to bind or o**it CII in any #ay #ithout our e3press #ritten onsent.

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value chain and baseline analysis

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