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Purpose

The purpose of this paper is to increase the student's knowledge of the value chain and its importance in managing costs.

Design/methodology/approach

The approach takes the form of a teaching case with practical implications, which also includes teaching notes.

Findings

It is important to effectively manage a company's value chain. A clear understanding of the value chain, combined with effective management of all aspects of the value chain can often lead to a competitive advantage in today's business environment.

Practical implications

A company can improve decision making with a clear understanding of the value chain.

Originality/value

This case presents a practical and straightforward approach for instructors to explain the value chain concept and how important managing the value chain can be to the company's overall success.

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