During Which Step of Value Chain Analysis Will the Company

question 24

Multiple Choice

During which step of value chain analysis will the company discover whether or not it has a cost advantage, and why?

• A)During the first step, when the value-chain activities are identified.
• B)During the first step, when the cost driver(s) are identified.
• C)During the second step, when the firm develops a competitive advantage by either reducing cost or adding value.
• D)The entire purpose of value chain analysis is to determine if the company has a cost advantage; therefore, it occurs in all steps.
• E)In the third step, when the company adopts and implements the balanced scorecard

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Definitions:

Internal Tariffs

Taxes imposed by a government on goods and services traded within the same country.

Opportunity Cost

The value of the best alternative forgone in making any decision, a concept central in economics for understanding resource allocation.

WTO

The World Trade Organization (WTO) is an international organization that regulates international trade between nations.

International Trade

The exchange of goods, services, and capital between countries or territories, enhancing global economic growth, extending markets, and driving competition.