A Business Flow Chart

Note by James R. Martin

MAAW's Chapter 8 | Value Chain Main Page

The business flow chart illustrated below is similar to the value chain concept discussed in the accounting literature since Porter used the term in 1985. However, in the business flow chart the emphasis is on the value increasing processes inside the business rather than on the entire value chain, i.e., including outside stakeholders and functions such as suppliers, distribution channels and customer service. See the following article for a discussion of the chart. Schonfeld, H. and H. P. Holzer. 1962. A "business" flow chart and its use as a teaching aid. The Accounting Review (January): 118-120. (JSTOR link).