Value Chain Analysis in Garment Manufacturing

MANAGEMENT ACCOUNTING

INTRODUCTION
In order to run a business with immense efficiency, a business organization has to follow certain
principles and ethics. There are various business processes that are adopted by the business
organization, one of which is value chain analysis (Atkinson, 2012). The company chosen by me
is a manufacturer of garments and is based in India known as Raymond Limited. As we know,
India is one of the fourth largest manufacturers of garments. Value chain analysis is considered
to be a significant business process in the line of manufacturing of garments and products. In the
initiation stage of any business, it is a difficult task to understand about the business completely
and therefore, the company is not able to reduce the cost optimally. So, it can be said to be a
slow and a time consuming business process. In the later stage of the business cycle, the
workings of the business become more clear and it becomes convenient to classify and analyze
the different cost that are related to the products manufactured.