Value Chain Analysis reviews all the activities that an organization performs to deliver its products or services to determine the value that each adds to the ultimate product or service. Value Chain Analysis provides a mechanism by which organizations can evaluate core and non-core activities, and help to expose and prioritize transformation possibilities. This study focused on Asella Malt Factory as it is one of the production corporations operating in the country. Although the scope of value chain is broad, this paper investigated the role of operation within the value chain of malt production in Asella Malt Factory. One of the specific objectives of this research was to evaluate the factory’s operational performance within the value chain.Asella Malt Factory was selected purposively for this study. Asella Malt Factory was established in 1984 and situated 167 km southeast of Addis Ababa.The study collected data from 20 per cent of the total population (248) which was high sample size determination. Accordingly, the sample size was determined as 50. It was proportionately allocated as follows: managing directors (5), supply and production workers (18), quality controlling workers (5), commercial workers (18), planning workers (2) and finance management workers (2). The research employed both primary and secondary sources of data. The researcher gathered primary data through questionnaire to assess the role of the operation in malt production value chain. The data gathered were organized, tabulated, presented, analyzed and interpreted by using descriptive statistical analysis such as mean, frequency and percentages. Concerning to the factory’s operational performance within value chain, the research result has found a gap regarding the understanding of core and non-core value chain activities, performing of activities in operating within value chain, understanding linkages among the company’s individual activities as well as meeting the customer requirements and expectations. The factory did not understand value chain activities and linkages among them; this results the factory unable to meet consumers demand. However, Asella malt factory has performed well relating to focus on improving the regularity and consistency of production, improving the safety of products and reducing the time needed to reach the customer, and improving the capacity of chain actors to follow and take in technology and market development.
