An Example of How Companies Can Revamp Their Value Chain

question 58

Multiple Choice

An example of how companies can revamp their value chain to reduce costs is:

• A) to increase service availability while reducing staffing requirements.
• B) to continue to utilize traditional methods of distribution and sales.
• C) to not make any changes in product manufacturing but change end distribution methods.
• D) to increase extra services to increase staffing requirements.
• E) to facilitate the learning curve by providing superior training to new employees.

Understand the limitations of job-analysis methods and the impacts on organizational strategy.

Understand the principle of diminishing marginal utility and its application to consumer choices.

Grasp how consumers maximize utility given their budget constraints.

Recognize the equal marginal utility per dollar spent rule in utility maximization.

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Definitions:

Confounding Variable

An external variable that influences both the dependent and independent variables in a study, potentially skewing the results.

Observational Study

A study in which the researcher observes and records behavior or outcomes without manipulating variables.

Traditional Experiment

A research methodology involving the manipulation of variables to determine their effect on a particular outcome, usually featuring a control and experimental group.

Control Group

In an experiment, the group that is not exposed to the treatment and is used as a benchmark to measure how the other tested subjects do.