Which of the Following Is Not One of the Ways

question 50

Multiple Choice

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?

• A) Cutting out distributors and dealers by selling direct to customers
• B) Replacing certain value chain activities with faster and cheaper online technology
• C) Increasing production capacity and then striving hard to operate at full capacity
• D) Relocating facilities so as to curb the need for shipping and handling activities
• E) Streamlining operations by eliminating low value-added or unnecessary work steps and activities

---

Definitions:

Individual Effort

The personal exertion or endeavor by an individual to accomplish a task or achieve a goal.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue; calculated as sales divided by average invested assets.

Group Pay Systems

Compensation structures where pay is determined based on the performance of a group or team, rather than individual achievement.

Dysfunctional Competition

A harmful form of rivalry among businesses that may involve unethical practices, leading to reduced efficiency and harm to consumers or the industry.