The Rationale for Making Strategy-Critical Value Chain Activities the Primary

question 58

Multiple Choice

The rationale for making strategy-critical value chain activities the primary building blocks in a company's organizational scheme is based on:

• A) the much shorter time it takes to build core competencies and competitive capabilities.
• B) the benefit such an organizational scheme has in reducing costs.
• C) the benefit such an organizational scheme has in improving the productivity of geographically scattered organizational units.
• D) the thesis that if activities crucial to strategic success are to have the resources,decision-making influence,and organizational impact they need,they have to be centerpieces in the organizational scheme.
• E) the benefit such an organizational scheme has in making the empowerment of employees more effective.

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Definitions:

Income Rises

An increase in the amount of money earned by an individual or household, which can affect consumption patterns and demand for goods and services.

Engel Curve

An Engel curve depicts the relationship between an individual's income and the quantity of a good purchased, illustrating how spending on the good varies with changes in income.

Demand Curve

graphically represents the relationship between the price of a good and the quantity of that good that buyers are willing to purchase at various prices.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, defined as the percentage change in quantity demanded divided by the percentage change in price.