On a Value-Chain Analysis Using an SPA,a Firm Determines That

question 12

Multiple Choice

On a value-chain analysis using an SPA,a firm determines that its performance is low in the area of operations.Operations is an area of low importance to the firm.Which of the following would be the best recommendation for the firm?

• A) Do not focus additional effort on operations.
• B) Focus more effort and resources on operations.
• C) Modify the value chain to emphasize operations.
• D) Re-evaluate how the firm handles current operations.

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Definitions:

Tradable Emissions Permits

A market-based environmental policy instrument that allows companies to buy or sell government-granted allotments of pollution, encouraging the reduction of emissions in a cost-effective manner.

Licenses

Official permits or authorizations granted by a governing body, allowing an individual or company to carry out a particular activity or use a particular product.

Polluters

Entities, often companies or individuals, that release pollutants into the environment, causing harm or potential harm.

External Benefits

Benefits of a good or service that are enjoyed by people other than the ones who originally purchase or consume the good.