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Value Chains
In this intensely competitive world of changing
markets and technologies, businesses are faced with
new demands, making it difficult for some to remain
competitive. A value chain approach is an alternative
business strategy used by some businesses to adapt
to these changes.
What is a value chain?
A value chain is an alliance
of enterprises collaborating vertically to achieve a
more rewarding position in the market.
The basic characteristics of a value chain is a
market-focused collaboration; different business
enterprises working together to produce and market
products and services in an effective and efficient
manner. Value chains allow businesses to respond to
the marketplace by linking production, processing
and marketing activities to market demands.
While companies in a value chain are legally
independent operations, they become interdependent
because they have common goals and work
collaboratively to achieve them. They work over the
long term discussing issues and troubleshooting
problems together. It is more than just long term
contracting.
For further information contact:
Agriculture and Food Council
www.agfoodcouncil.com
Alberta Agriculture and Rural Development
www.agriculture.alberta.ca
Working Closely with
Professionals
Are you aware of the many decisions to be made,
even before you start out, involving legal issues,
taxation, insurance, finance, bookkeeping and
accounting, hiring employees, etc.? These are often
complicated and difficult to address without
specialized expertise. Lawyers, accountants, bankers
and insurance agents can offer assistance and advice
that will help you avoid mistakes. They can save you
time and money by addressing pitfalls before they
occur. With time, the up-front costs associated with
professional help is absorbed if your business goes
as planned.
Accounting Advice
You may want to consult with an accountant to help
you set up your business records. He or she can help
you choose your annual accounting period, your
accounting method and your inventory method. An
accountant can also help you with strategic planning,
cash management, compensation strategies, cost
control and management information systems. There
are many computerized accounting programs
available. Choose the one that works for your
situation.
Insurance
Most businesses need several kinds of insurance.
Workers compensation and automobile insurance are
required by law. Product liability insurance is not
required by law; but in the specialty food business it
is highly recommended. In practice, many
distributors and retail locations require proof of such
insurance before doing business with you. Other
kinds of insurance, like liability, fire, business
interruption, life, disability and key person are not
required. These too may be desirable for your
particular business.
Find an insurance agent whose advice you trust and
discuss all of these types of insurance. Insurance
agents will usually meet with you and make
recommendations free of charge.
Taxation
All businesses operating in Alberta are subject to
three levels of taxation: local, provincial and federal.