The Value Chain Model

question 83

Multiple Choice

The value chain model:

• A) categorizes five related advantages for adding value to a firm's products or services.
• B) sees the supply chain as the primary activity for adding value.
• C) categorizes four basic strategies a firm can use to enhance its value chain.
• D) helps a firm identify points at which information technology can most effectively enhance its competitive position.
• E) focuses primarily on collaboration with suppliers.

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Definitions:

Strategic Plan

A document that outlines an organization's long-term goals and the strategies it will use to achieve them.

Competitive Strategy

A long-term plan formulated by a company to gain a competitive advantage over its rivals in the industry.

Operating Budget

A comprehensive forecast that outlines expected revenue from sales and all anticipated expenses over a specific time frame, typically one year.

Sales Budget

An estimate of the amount of revenue that will be generated from sales during a specific period.