I am responsible for transfer pricing for a multinational group. Following the changes to transfer pricing arising from BEPS I am hearing a lot about the need for ‘value chain analysis’. What is a value chain analysis do I need to undertake one and how do I go about doing it?
Answer
First things first what is a value chain?
A ‘value chain’ as a concept was first formulated by Michael Porter in Competitive advantage in 1985. In simple terms it is a systematic way of examining all of the activities performed by a business to determine the sources of competitive advantage and how these translate into profit.
It is really an answer to the question ‘how does...
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I am responsible for transfer pricing for a multinational group. Following the changes to transfer pricing arising from BEPS I am hearing a lot about the need for ‘value chain analysis’. What is a value chain analysis do I need to undertake one and how do I go about doing it?
Answer
First things first what is a value chain?
A ‘value chain’ as a concept was first formulated by Michael Porter in Competitive advantage in 1985. In simple terms it is a systematic way of examining all of the activities performed by a business to determine the sources of competitive advantage and how these translate into profit.
It is really an answer to the question ‘how does...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
