Value chain analysis

Value chain analysis is used to examine the firm’s major activities in order understand the behavior of costs, the associated value added, and the existing and sources of differentiation in order again a Competitive advantage by performing some activities at a lower cost or with greater levels of differentiation than competitors.

Values

The guiding principles on how the organisation should act when carrying out the plan.

Variable Cost

A cost that changes with the production quantity or the performance of services.

Variances

The differences between what has been budgeted and actual income or expenditure.

Venture capital

Venture capital refers to equity investment in an unlisted business offered free of collateral to an entrepreneurial enterprise having potential for high returns over the medium to long term (two to seven years).

Vision

What the organization hopes to achieve – what the ‘world’ being targeted by the organization will look like when the mission has been achieved.