The Analysis of the Activity Map of a Successful Company

question 1

Multiple Choice

The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how

• A) the organizational culture of Southwest Airlines is the key to the success of the organization.
• B) understanding of the profit pool in an industry indicates to companies where above-average returns can be earned.
• C) it is hard for rivals to match an array of interlocked activities.
• D) the primary and support activities of a successful company capture value all along the value chain.

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Definitions:

Average Variable Costs

The total variable costs (costs that vary with the level of output) divided by the quantity of output produced.

Average Costs

The total cost of production divided by the number of goods produced, representing the per-unit cost of production.

Shut-Down

Shut-down refers to the temporary or permanent cessation of operations, usually in the context of businesses or machinery.

Relationship-Specific Investments

See Specific investments.