Value Chains: A flighty topic…


Norman Sheehan has developed an award winning exercise to teach value chain analysis (see the JME paper). Here are excepts from the abstract: Despite its ubiquity, many students struggle to understand and apply value chain concepts. JetFighter uses a complex manufacturing process (intricate paper planes) to enhance students’ value chain competencies. Teams are use value chain concepts to develop innovative strategies to fulfill customer requirements and outperform rivals. The exercise involves two production periods with a brief value chain lecture occurring after the first period. Given that teams typically lose money in the first round, their motivation to learn is enhanced as they are immediately provided an opportunity to apply this knowledge in the second period. Here are materials for the exercise:

Contributed by Norman Sheehan

2 thoughts on “Value Chains: A flighty topic…

  1. This was super fun to do in class. In addition to value chain, I modified the game to add vertical integration. Some teams were vertically integrated and some were not. I had supplier firms who sells partially folded papers, and we got some good lessons in on the benefits and dangers of outsourcing. Thank you!

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