The Goal of Value Chain Analysis Is to Identify Processes

question 102

Multiple Choice

The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself,with a ________ or ________________.

• A) focused strategy, product differentiation
• B) focused strategy, cost advantage
• C) cost advantage, primary value activities
• D) cost advantage, product differentiation

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Definitions:

Investment Centre Performance

An evaluation of a business unit's profitability and efficiency in managing its assets to generate profits.

Organisation's Minimum Required Rate Of Return

The lowest acceptable return on investment that an organization deems necessary, reflecting its risk tolerance and financial objectives.

Capital Invested

The total amount of money that has been put into a company's projects, assets, or business endeavors to generate growth or profits.

Total Sales

The complete sum of all sales transactions made by a business within a specified period.