McCormick+Schmitz Handbook for value chain research on - PACA

8.2 Initial and final map
Mapping a <strong>value</strong> <strong>chain</strong> can be divided into two stages. First, drawing an initial map
which gives the contours of the <strong>chain</strong>: the main activities carried out locally, their
connections to activities elsewhere, the connections to the final market, some initial
indications of size and importance. Second, elaborating the final map: quantification of
key variables, identification of strategic and non-strategic activities, showing the gender
and skill composition in these activities, identifying leverage points <strong>for</strong> action. 8
Perhaps it is misleading to speak of one final map. In most cases you will have several
maps, <strong>for</strong> example one map showing the number of enterprises in each stage and another
map giving the average earnings in various parts of the <strong>chain</strong>. Indeed, it is important to
avoid in<strong>for</strong>mation overload. Do not show everything at once. Figure 8.1 is an example of
a final map showing the number of workers in each stage of the <strong>chain</strong>.
You can start reading the map from the top or bottom. It tells us that local producers feed
into three different <strong>chain</strong>s. In <strong>chain</strong> 1, different enterprises occupy the different stages of
the <strong>chain</strong>. Local producers sell via wholesalers to retailers. In <strong>chain</strong> 2, they sell directly
to the retailers who drive <strong>chain</strong>. And <strong>chain</strong> 3 is characterised by vertical integration from
retailing back to production. The four line connection means the relationship is between
parent company and subsidiary. The more lines (four is the maximum) connect the
various stages, the closer the relationship between the enterprises involved. Where there
is just one line, as in <strong>chain</strong> 1, it means that the relationship is ‘arms-length’. These
differences in relationships are explained more fully later.
The map also shows - at a glance - that homeworkers are used in <strong>chain</strong> 1 and 2 but play
no role in <strong>chain</strong> 3. And it suggests that homeworkers make up 15 per cent of total
employment of 40,000 in garment production. The same basic construct can be used to
show <strong>for</strong> example number of enterprises, wage levels and many other variables. Different
8
Chapters 8 and 9 have benefited greatly from the GEMINI subsector approach to small enterprise
development. See in particular the overview article by Boomgard et al. (1992) and the field manual <strong>for</strong>
subsector practitioners by Haggblade and Gamser (1991).
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