Identifying the Primary and Secondary Activities That Comprise a Company's

question 58

Multiple Choice

Identifying the primary and secondary activities that comprise a company's value chain

• A)indicates whether a company's resource strengths will ultimately translate into greater value for shareholders.
• B)reveals whether a company's resource strengths are well-matched to the industry's key success factors.
• C)is the first step in understanding a company's cost structure (since each activity in the value chain gives rise to costs).
• D)is called benchmarking.
• E)is called resource value analysis.

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Definitions:

Bargaining Power

The ability of one party to negotiate favorable terms in a deal because of its leverage or strategic advantage over another party.

Collective Bargaining

The process where union representatives negotiate labor contracts with employers concerning wages, working conditions, and other employment terms.

Unions

Organizations that represent the collective interests of workers in negotiations with employers regarding pay, working conditions, benefits, and other labor issues.

Company Profits

The financial gains made by a company after all expenses have been paid.