IntroductionThe objective of this essay is to explain the various functions and strategies of value chain management and discuss how to implement them in a flat panel display company, so as to improve the performance of the operating system which will ultimately increase production efficiency and quality, thus helping them gain a competitive advantage over their competitors. This will result in increased profits for the company.Value Chain Management: Development of a set of functional-level strategies that increase the performance of the operating system a company uses to transform inputs into finished goods and services. (George and Jones, 2006:267)Operating System: The different functional activities of an organization combines and uses to acquire inputs, convert inputs into outputs and dispose of outputs. (Answers, 2006:1) Value Chain Refers to the idea that a business is a chain of functional activities that transform inputs into outputs of goods and services of value to the customer. Production function Responsible for creating a good or service Marketing and Sales function Increase the value that the customer perceives to be contained in a product Service function Provide after-sales assistance and support Materials management function Control the movement of physical materials through value chain Function of information systems Controls the electronic system for inventory management, sales tracking, product pricing, etc. (Michael E. Porter, 1985: 37-43)) Therefore it is necessary to divide the business into the above-mentioned functions, namely: to create an efficient and productive process through which to produce the flat screen displays. Design and devise a competitive and engaging marketing campaign that promotes the quality of the product and its value for money in order to increase customers' perceived opinion of the product. Establish an after-sales service department within the company to offer consumers after-sales service and support for any issues that may arise with the product. Develop an efficient and simple method in which the physical materials needed to produce flat panel displays move along the value chain so as to reduce costs and increase overall efficiency, and ultimately establish and maintain an electronic system thanks to which you can efficiently manage flat panel displays screen inventory, screen sales tracking and progress, and inventory pricing. Improve responsiveness to customers Customers usually prefer: A lower price to a higher price. High quality products to low quality products. From fast service to slow service (I also prefer good post support -selling) Many features versus few features. Products that are; customized or tailored to their specific needs. (George and Jones, 2006: 271) Therefore, to improve responsiveness towards customers, the company must evaluate the needs and wants of consumers, this can be done by conducting market research and surveys.