Organisational structure and value chain evolution: impacts of information technology on the insurance industry in the USA and Europe

2006 ◽  
Vol 1 (2) ◽  
pp. 171
Author(s):  
Vandana Mangal ◽  
Paolo Neirotti
Author(s):  
Zhu Zhu ◽  
Hang Zheng ◽  
Zhu Zhu

AbstractBased on the theory of trade added value, this paper discusses the potential actual trade scale and benefit damage degree of the two countries under the background of big country game by measuring the real trade scale of China and the USA, simulating the economic impact of tariffs imposed by China and the USA and utilizing Wang–Wei–Zhu (WWZ) method to decompose the potential changes in Sino-US trade. The results show that: firstly, the size of China-US trade in terms of total value is significantly overestimated and China's overall trade with the USA in 2001–2014 was overestimated by an average of 3.06 percent, of which goods trade was overestimated by 8.06 percent. Secondly, although tariff increases can reduce the degree of trade imbalance between China and the USA to some extent, the adverse effects are mutual and global, and the European Union, the Association of Southeast Asian Nations (ASEAN), Japan and Canada become the main transfer countries of Sino-US trade. Thirdly, the pattern of China's final exports and the US' intermediate exports determines that China's trade interests are more damaged than those of the USA. It is proved that there is a big gap between China and the USA in the depth and breadth of China's participation in the value chain division of labor and the trade scale measured by Gross Domestic Product is more instructive than the total value.


2017 ◽  
Vol 2 (1) ◽  
Author(s):  
António R. Graça ◽  
Luís Simões ◽  
Rui Freitas ◽  
Miguel Pessanha ◽  
George Sandeman

AbstractSustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs (WCED, 1987). For the business community, sustainability is more than mere window-dressing. By adopting sustainable practices, companies can gain a competitive edge, increase their market share, and boost shareholder value (IISD, 2013). The wine industry has incorporated sustainability into its business strategy for a long time. In the USA, several industry organizations promoted its adoption by both grape growers and winemakers. In mountain wine regions, sustainability becomes more important as these regions generally struggle with reduced competitiveness due to inherent difficulties such as accessibility, remoteness, sparseness of business and population, topography and pedoclimatology (EUROMONTANA 2005). Therefore, any improvement in sustainability is a key factor for the viability of mountain wine producers. Sogrape Vinhos farms 480 ha of mountain vineyards in DWR securing the quality base of grapes for its SANDEMAN Port and CASA FERREIRINHA Douro wines. The company continuously adopted sustainable practices across the whole value chain, from grape to glass. This paper illustrates how a simple, but comprehensive, sustainability assessment, as proposed by a US-based award, can be used to monitor and improve sustainable development practices for a wine business set in an adverse environment, while raising awareness in a key market for wines produced in a mountain vineyard area such as the DWR.


2016 ◽  
Vol 9 (3) ◽  
pp. 651-666 ◽  
Author(s):  
Johannes Van der Merwe ◽  
Philippus Cloete ◽  
Herman Van Schalkwyk

This article investigates the competitiveness of the South African wheat industry and compares it to its major trade partners. Since 1997, the wheat-to-bread value chain has been characterised by concentration of ownership and regulation. This led to concerns that the local wheat market is losing international competitiveness. The competitive status of the wheat industry, and its sub-sectors, is determined through the estimation of the relative trade advantage (RTA). The results revealed declining competitiveness of local wheat producers. Compared to the major global wheat producers, such as Argentina, Australia, Brazil, Canada, Germany and the USA, South Africa’s unprocessed wheat industry is uncompetitive. At the same time, South Africa has a competitive advantage in semi-processed wheat, especially wheat flour. The institutional environment enables the importation of raw wheat at lower prices and exports processed wheat flour competitively to the rest of Africa.


Author(s):  
Jon Manhire

High-value consumer markets are demanding a continuously higher quality of products and enhanced food safety. In association with this, the increasingly competitive global market place and developments in information technology have catalysed the establishment of closer relationships and co-operation between participants in high-value supply chains. These closer relationships enhance the flow of information between participants and their ability to introduce strategies to improve efficiencies in supply as well as to decrease risks to consumers and others in the supply chain. These trends have significant implications to New Zealand farmers who will need to adopt systems to more effectively monitor and record their use of inputs and subsequent farm and stock management and make this information available to those further down the value chain. An inability to respond to these trends may result in farmers as well as processors, limited to servicing only relatively lower value markets. Keywords: agricultural sector, information technology, New Zealand, supply chain integration, supply chain management


Author(s):  
Fernando José Barbin Laurindo

Information technology (IT) has assumed an important position in the strategic function of the leading companies in the competitive markets (Porter, 2001). Particularly, ecommerce and e-business have been highlighted among IT applications (Porter, 2001). Two basic points of view can be used for understanding IT’s role: the acquisition of a competitive advantage at the value chain, and the creation and enhancement of core competencies (Porter & Millar, 1985; Duhan, Levy, & Powell, 2001). Several problems have been discussed concerned with IT project results in effectiveness of their management. Effectiveness, in the context of this article, is the measurement of the capacity of the outputs of an information system or of an IT application to fulfill the requirements of the company and to achieve its goals, making this company more competitive (Shimizu, Carvalho, & Laurindo, 2006). There is a general consensus about the difficulty of finding evidence of returns over the investments in IT (the “productivity paradox”), even though this problem can be satisfactorily explained (Farrell, 2003). Carr (2005) defends the idea that IT in itself has no more strategic value, since it is so widely disseminated that it could not be a source of strategic differentiation anymore. In order to better use these investments, organizations should evaluate IT effectiveness, which allows the strategic alignment of objectives of implemented IT applications and their results with the company business vision (Shpilberg, Berez, Puryear, & Shah, 2007; Laurindo & Moraes, 2006). Besides, it must be highlighted that if IT applications are associated with changes in business processes, it is possible to notice greater impacts in business performance (Farrell, 2003). According to Benko and McFarlan (2003), three aspects must be taken into account about IT strategic alignment: IT projects portfolio, business objectives, and the constantly changing situation of business environment. Thus, the comparison and evaluation of business and IT strategies and between business and IT structures must be a continuous process, since the company situation is constantly changing to meet market realities and dynamics.


Author(s):  
Howard S. Rasheed ◽  
Hassan Rasheed

Internet-based information technology (I-IT) has become an integral part of the value chain for many firms, increasing the efficiency of existing activities and enabling new modes of doing business. Despite a significant amount of research on I-IT, however, its exact impact on firm performance has yet to be resolved. This study examines multiple issues regarding the relationship between I-IT investment made in support of value chain management and organizational performance as judged by profit and productivity. Conclusions are offered regarding the strength of this type of investment as a performance predictor, the types of firms for which it does improve performance and what modes of I-IT investment produce the greatest results. Data from 165 firms indicate that investment in I-IT can positively impact performance depending on the type of industry and the type of supply chain function being supported. In particular, results indicate that firms in industries such as banking and insurance stand to benefit most from the use of I-IT. This study also provides useful recommendations for how firms should design and deploy their I-IT resources for value chain management that maximizes their return on investment. Due to the importance of the internet in global economic development, the implications of this study are significant.


Author(s):  
David L. Bahn

The strategic benefit of IT (information technology) in supporting business functions is often seen as the basis for competitive advantage that is sustainable. The value chain concept has been a handy tool widely utilized in business strategy analysis to match firm competency in performing business activities with the achievement of sustainable marketplace advantage. When it comes to the assessment of the competitive value of information technology, the value chain concept seems to either categorize IT as a support activity or to overly narrow the scope of IT’s role in achieving sustainable competitive advantage. This chapter reviews the concepts of the value chain and sustainable competitive advantage. Short case studies from a number of industries are presented in order to illustrate the limitations of using the value chain to describe information technology’s role in achieving sustainable competitive advantage. These examples demonstrate the subtle and often complex relationship between information technology and competitive advantage.


Author(s):  
Mark R. Nelson

The strategic benefit of IT (information technology) in supporting business functions is often seen as the basis for competitive advantage that is sustainable. The value chain concept has been a handy tool widely utilized in business strategy analysis to match firm competency in performing business activities with the achievement of sustainable marketplace advantage. When it comes to the assessment of the competitive value of information technology, the value chain concept seems to either categorize IT as a support activity or to overly narrow the scope of ITs role in achieving sustainable competitive advantage. This chapter reviews the concepts of the value chain and sustainable competitive advantage. Short case studies from a number of industries are presented in order to illustrate the limitations of using the value chain to describe information technologys role in achieving sustainable competitive advantage. These examples demonstrate the subtle and often complex relationship between information technology and competitive advantage.


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