3 Analysis: Data Base and Analytical
Procedures
Specific analyzes were carried out on the income statement
of the top three US companies. Data were obtained from
the respective 10-K forms, financial statements published
by law. The selected companies represent only a nonexhaustive sample, but only an example of the application of
the new approach suggested by this research paper (see
Tables 1, 2, 3 and 4).
The value chain is represented in Table 1. The data
analysis was conducted to conform with this Responsible
Value-Added Analysis framework creating consistent points
of comparison across firms in each industry. Without
attempting to determine any amount of financial capital
remuneration as unfair, this process will analyze if: (a) there
is a balance in the chain and (b) which part of the chain
offers greater compensation for work.
Therefore, certain activities create more value and greater
equity and wealth can be created for people who contribute
in these ways. This would occur through the creation of jobs,
increase in gross national product, and a reduction in
unemployment.
Many classifications of the VAS were developed by the
researchers (Mandal and Goswami 2008). The one referred
to in this research paper is represented in Fig. 1.
In this RVAA analysis, the first margin, value-added,
represents the gross production side. These are considered as
a set of inanimate inputs and outputs.
The subsequent margin allows researchers to highlight
the participation of all stakeholders in contributing to the
added value. The composition can therefore be observed and
in what proportion the added value has been distributed
among all the direct stakeholders as shown in Fig. 2.
Considering the distribution of added value not only for a
single company, but for the whole industry, through the
supply chain, we obtain a combined configuration of tools
that are useful to add vertical and horizontal returns (Mandal
and Goswami 2008; Hannan et al. 2017; Afzal Hossain
2017; Haller and Van Staden 2014; Cox 1979; Moreley
1979; Mondol and Goswami 2008; Rao 2000; The Future of
Company Report 1977). The added value, as already mentioned above, from the production side, can be considered as
the difference between inanimate inputs and outputs. Analyzing in detail the added value on the distribution side, in
this paper the focus is not on a single company. Instead this
framework provides a broad view of the whole industry and
enhances the ability of decision-makers to understand the
value chain throughout the supply chain.
The new approach consists of following the following
procedure (see Fig. 3).
This procedure consists of the following steps:
1. Decomposition and analysis of the distribution of added
value for each individual company (or business cluster)
that make up the supply chain (in this case: lithium
producers, wholesalers, and retailers);
2. Re-composition and horizontal sum of the returns of the
entire supply chain divided by recipient (specific stakeholder) of the return;
3. Analysis of the distribution of added value of the supply
chain when considered as a whole.
The combination of these analyzes produced by the
supply chain and the VAS leads to the creation of an
instrument of extraordinary value and utility. This innovative approach makes it possible to provide valuable information not only for the stakeholders themselves but also for
those who indirectly can influence their returns. Government
agencies and regulators are one example. Two of the natural
targets of the RVAA are to reduce the unemployment rate
and increase revenues to business that add real value. If the
policy-maker only focuses on a single link in the chain,
without considering the upstream and downstream consequences, a policy change could get unintended or unwanted
results. The decision to allow a facility zone, licensing, tax
abatement, or other advantages to an industry must consider
the return of all links in the chain, not just one of them. For
example, it could be discovered that a higher level of
employment can be achieved in one industry rather than
another and thus warrant greater supports (Van Staden 2000;
Ianniello 2010; Catturi 1994; Freeman 1984; Maddison
2005; Evraert and Riahi-Belkaoui 1998; Reichmann and
Lange 1981; Morley 1978; Jain et al. 2010; Burgess and
Singh 2006).
4 Findings: Results and Related
Considerations
The analysis of the consumable batteries sector, divided
between producers of lithium, wholesalers, and retailers,
following the steps indicated in the previous paragraph, has
allowed us to provide a good example of the concrete
applicability of the new analysis approach. The top three
companies were selected for each ring of the supply chain
(lithium producers, wholesalers, and retailers), the income
statements of each link in the chain were analyzed in an
aggregate way and the sum of returns was reported in a final
aggregate for the whole industry (see Tables 2, 3, 4, 5 and 6).
The composition of yields in the three different
macro-aggregates was very different, but in any case, in line
26
J. Darville and A. Faccia
Procedures
Specific analyzes were carried out on the income statement
of the top three US companies. Data were obtained from
the respective 10-K forms, financial statements published
by law. The selected companies represent only a nonexhaustive sample, but only an example of the application of
the new approach suggested by this research paper (see
Tables 1, 2, 3 and 4).
The value chain is represented in Table 1. The data
analysis was conducted to conform with this Responsible
Value-Added Analysis framework creating consistent points
of comparison across firms in each industry. Without
attempting to determine any amount of financial capital
remuneration as unfair, this process will analyze if: (a) there
is a balance in the chain and (b) which part of the chain
offers greater compensation for work.
Therefore, certain activities create more value and greater
equity and wealth can be created for people who contribute
in these ways. This would occur through the creation of jobs,
increase in gross national product, and a reduction in
unemployment.
Many classifications of the VAS were developed by the
researchers (Mandal and Goswami 2008). The one referred
to in this research paper is represented in Fig. 1.
In this RVAA analysis, the first margin, value-added,
represents the gross production side. These are considered as
a set of inanimate inputs and outputs.
The subsequent margin allows researchers to highlight
the participation of all stakeholders in contributing to the
added value. The composition can therefore be observed and
in what proportion the added value has been distributed
among all the direct stakeholders as shown in Fig. 2.
Considering the distribution of added value not only for a
single company, but for the whole industry, through the
supply chain, we obtain a combined configuration of tools
that are useful to add vertical and horizontal returns (Mandal
and Goswami 2008; Hannan et al. 2017; Afzal Hossain
2017; Haller and Van Staden 2014; Cox 1979; Moreley
1979; Mondol and Goswami 2008; Rao 2000; The Future of
Company Report 1977). The added value, as already mentioned above, from the production side, can be considered as
the difference between inanimate inputs and outputs. Analyzing in detail the added value on the distribution side, in
this paper the focus is not on a single company. Instead this
framework provides a broad view of the whole industry and
enhances the ability of decision-makers to understand the
value chain throughout the supply chain.
The new approach consists of following the following
procedure (see Fig. 3).
This procedure consists of the following steps:
1. Decomposition and analysis of the distribution of added
value for each individual company (or business cluster)
that make up the supply chain (in this case: lithium
producers, wholesalers, and retailers);
2. Re-composition and horizontal sum of the returns of the
entire supply chain divided by recipient (specific stakeholder) of the return;
3. Analysis of the distribution of added value of the supply
chain when considered as a whole.
The combination of these analyzes produced by the
supply chain and the VAS leads to the creation of an
instrument of extraordinary value and utility. This innovative approach makes it possible to provide valuable information not only for the stakeholders themselves but also for
those who indirectly can influence their returns. Government
agencies and regulators are one example. Two of the natural
targets of the RVAA are to reduce the unemployment rate
and increase revenues to business that add real value. If the
policy-maker only focuses on a single link in the chain,
without considering the upstream and downstream consequences, a policy change could get unintended or unwanted
results. The decision to allow a facility zone, licensing, tax
abatement, or other advantages to an industry must consider
the return of all links in the chain, not just one of them. For
example, it could be discovered that a higher level of
employment can be achieved in one industry rather than
another and thus warrant greater supports (Van Staden 2000;
Ianniello 2010; Catturi 1994; Freeman 1984; Maddison
2005; Evraert and Riahi-Belkaoui 1998; Reichmann and
Lange 1981; Morley 1978; Jain et al. 2010; Burgess and
Singh 2006).
4 Findings: Results and Related
Considerations
The analysis of the consumable batteries sector, divided
between producers of lithium, wholesalers, and retailers,
following the steps indicated in the previous paragraph, has
allowed us to provide a good example of the concrete
applicability of the new analysis approach. The top three
companies were selected for each ring of the supply chain
(lithium producers, wholesalers, and retailers), the income
statements of each link in the chain were analyzed in an
aggregate way and the sum of returns was reported in a final
aggregate for the whole industry (see Tables 2, 3, 4, 5 and 6).
The composition of yields in the three different
macro-aggregates was very different, but in any case, in line
26
J. Darville and A. Faccia