LV EN RU DE FR

Value Chain Economics

Course developer

Prior knowledge

Ekon1012, Microeconomics

Ekon2100, Bioeconomics I

Ekon2109, Macroeconomics

Ekon3095, Bioeconomics II

Course abstract

The course provides knowledge of value chain economics in the context of the global and national markets. The course focuses on value chain research issues such as basic elements and models of the value chain, planning and analysis methods to increase the added value, the value chain role in business and sustainable consumption, the value chain territorial and spatial dimension, as well as topical global processes and their impact. The course analyses value chain examples in different Latvian agricultural sectors.

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of
• basic elements of a value chain and the role of a value chain under globalisation and sustainability conditions. Test and examination
• methods for analysing value chains, the dimensions and factors of a value chain. Test and examination
• specifics of a value chain in the bioeconomy in Latvia. Test and independent work.
SKILLS to
• Identify value chain elements and links among them
• Identify and describe flows of goods and services for certain value chains. Test, independent work.
• Analyse value chains and find solutions to increasing the added value. Independent work.
• Responsibly plan the completion of the assignments given. Independent work.
• Select information and present the calculations performed and proposals made. Independent work.
COMPETENCE to
• Comprehend the roles and liability of various stakeholders involved as well as the effects of macroeconomic factors (national and global socio-economic, political, technological etc.) on product value creation. Independent work, tests, an examination.
• Make well-thought-out and reasoned decisions as well as assess the resources needed for their implementation and the processes and consequences involved in order to optimise the gains of value chain participants. Independent work.

Course Content(Calendar)

Lectures (32 hours)
1. Substance and components of value chain economics (2h).
2. Kinds and elements of a value chain (2h).
3. Value chains and globalisation (2h).
4. Value chains in entrepreneurship (2h).
5. Value chains and marketing (2h).
6. Spatial and territorial dimensions of a value chain (2h).
7. Role of urban and rural areas in a value chain (2h).
8. Acquisition and processing of data for value chain representation and analysis (2h).
9. Value chain analysis: M.Porter’s model (2h).
10. Five-step value chain analysis (2h).
11. Increasing value chain efficiency (2h).
12. Specifics of a value chain in agriculture (2h).
13. Value added generation in agriculture in Latvia compared with the other EU member States (2h).
14. Value added generation in the livestock (milk, meat) and grain (cereals, rapeseed) industries (2h).
15. Value chains in the food sector (2h).
16. Value added generation in forestry and tourism (2h).
Practicals (32 hours)
1. Basic concepts of value chain economics and their application (1 hour).
2. Examples of basic elements of a value chain in various industries (1 hour).
3. Comparison and characteristics of a value chain and a supply chain (1 hour).
4. Identification of the participants involved in a value chain, the characteristics of their interaction for a specific product (2 hours).
5. Characteristics of the interaction of links and elements of a value chain for a certain product (2 hours).
6. Test (1 hour).
7. Concept of sustainable consumption and the application (1 hour).
8. Global consumption chains – an analysis of the examples (2 hours).
9. Territorial (local and global) constraints for a value chain (1 hour).
10. Cross-border movement of goods and services - success stories for products manufactured in Latvia (2 hours).
11. Concentration and availability of products in urban and rural areas – an analysis of the situation in Latvia (1 hour).
12. Analysis of the place and role of enterprise in the total value chain in various industries of the economy (1 hour).
13. Analysis of economic indicators of a value chain (2 hours).
14. Electronic tools for value chain creation.
15. Opportunities and proposals for increasing the value of a specific product at a certain stage of the value chain (2 hours).
16. Test (1 hour).
17. Analysis and specifics of a value chain in livestock industries - dairy farming, grazing livestock farming (1 hour).
18. Value chain analysis for crop industries - grain, rapeseed production (1 hour).
19. Value chain analysis for food production and home production (1 hour).
20. Analysis of the situation with value creation in the forest industries - forestry and wood processing (1 hour).
21. Analysis of the situation with value creation in tourism, including rural tourism (1 hour).
22. Analysis of the situation with value creation in energy production (1 hour).
23. Test (1 hour).

24. Presentations of students’ practical assignments (2 hours).

Requirements for awarding credit points

1. 3 tests
2. Individual work

3. Examination

Description of the organization and tasks of students’ independent work

Independent work - Formation and analysis of a product value chain in the agricultural sector.

Criteria for Evaluating Learning Outcomes

The final mark consists of the following pieces of assessment:
1. 3 tests 45%
2. Individual work 15%

3. Examination 40%

Compulsory reading

1. McGuffog T. (2016) Building Effective Value Chains: Value and Its Management. Croydon: Kogan Page Limited, 230 p.
2. Measuring and Analyzing the Impact of GVCs on Economic Development: lobal value chaindevelopment report (2017). Foreword by Michael Spence; World Bank Group, DE-JETRO, OECD, UIBE, World Trade Organization. Washington, DC, USA:World Bank Group.189 lpp
3. Kaplinsky R., Morris M. (2003) A Handbook for Value Chain Research. International Development Research Center, 113.p.

4. Baldwin, C., Clark, K., Magretta, J. and Dyer, J., (2000). Harvard Business Review on Managing the Value Chain, Harvard Business School Press, 283 p.

Further reading

1. Popescu, M, Dascălu, A. (2011) Value chain analysis in quality management context. Bulletin of the Transilvania University of Brasov. Series V : Economic Sciences, 01 January 2011, Vol.4(2), pp.121-128
2. Tunkele S., Mārciņš J. (2010) Value added chain assessment of forest industry in Latvia. Trends in Agricultural Engineering 2010 : 4th International conference : collection of abstracts, Prague, Czech Republic, 7 – 10 September 2010 / Czech University of Life Sciences Prague. Faculty of Engineering. Prague, 2010. 143.lpp.
3. The Cambridge Natural Capital Programme (2011) Building resilient value chains. Cambridge Programme for Sustainability Leadership, 14.p.

4. Gereffi G., Humphrey J., Sturgeon T. (2005) The Governance of Global Value Chains, In: Review of International Political Economy, vol. 12, no.1 pp. 78–104.

Periodicals and other sources

1. Consumer Goods Forum, Future Value Chain 2020. Pieejams: www.futurevaluechain.com
2. CSR Europe, Managing Sustainable Supply Chains. Pieejams: www.csr-supplychain.org
3. European Commission- Joint Research Centre, Institute for the Environment and Sustainability, Life Cycle Thinking and Assessment. Pieejams: http://lct.jrc.ec.europa.eu

4. Government of South Australia, PIRSA Value Chains, Value Chain Toolkit. Pieejams: www.pir.sa.gov.au/valuechains/ value_chain_toolkit

Notes

Restricted elective course for the ESAF academic bachelor programme Economics, specialisation Agricultural and Environmental Economics.