Porter's Value Chain

question 25

Multiple Choice

Porter's value chain

• A)can only be used to analyse cost leadership strategies.
• B)can be used to look at the current and additional costs of changes in a differentiation strategy.
• C)can be used to examine the current and additional service levels offered to customers in a differentiation strategy.
• D)b and c.

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Definitions:

Counterproductive Activities

Actions or behaviors that hinder the achievement of a goal or the functioning of a process, often resulting in the opposite of the desired outcome.

Democratic Political Process

A system of government in which power is vested in the people, who rule either directly or through freely elected representatives.

Rent-Seeking Activity

Behavior by individuals or firms to increase their share of existing wealth without creating new wealth, often through lobbying for favorable regulations or policies.

Economic Efficiency

A state in which resources are allocated in the most beneficial way, maximizing the production of goods and services.