The Value Chain Model

question 54

Multiple Choice

The value chain model:

• A)categorizes five related advantages for adding value to a firm's products or services.
• B)sees the supply chain as the primary activity for adding value.
• C)categorizes four basic strategies a firm can use to enhance its value chain.
• D)highlights specific activities in the business where competitive strategies can best be applied.
• E)enables more effective product differentiation.

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Definitions:

Trade Discounts

Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers.

Operating Expenses

Costs associated with a company's main operational activities, excluding the cost of goods sold.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the financial performance over a specific period.

Service Businesses

Businesses that primarily offer intangible products or services to consumers or other businesses.