Starbucks Value Chain

Source: Anandajayasekeram and Berhanu (2009).

In their handbook for value chain research Kaplinsky and Morris, (2001) define a value chain as the full range of activities required to channel a product from conception, through the different phases of production and transformation. A typical value chain consists of a series of actors (players) from input suppliers, producers and processors, to exporters and buyers engaged in the activities required to bring agricultural product from its conception to its end use on the other hand Bammann (2007) defined value chains by identifying three vital of value chain. He mentions value chain actors, this are actors who directly deal with the products. Value chain supporters are providers of services

The aim of value chains in business is optimizing the performance of the business as it weighs the competencies on the basis of achieving laid own objectives and goals of the business. It determines it by measuring the various economic aspects and helps the researcher to draw a conclusion on the ways in which the chain can be enriched. Successful chains rely on integration, coordination, communication and cooperation between the respective partners with the traditional measure of success being the return on investment (Dunne, 2001).

2.1 Basic Concepts guiding value chain analysis

For value chains to work effectively various concepts acts as the pillars of forming successful chains. Anandajayasekeram and Berhanu, (2009); Kaplinsky and Morris, (2000) stated that productive chains are on the basis of effective demand, production, value chain governance, Measuring value chains and upgrading.

2.1.2 Effective

If this is done effectively, then a better relationship among the chain actors is built. The aim of value chain analysis is to increase the quantity of production. Thus a depth Understanding the mechanisms of the production more so in agriculture can greatly help to design appropriate policy that brings more gain to farmers and the whole society at large. For a long time, sector analyses have been used to measure the different economic aspects of production. However, sector analyses were no without