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Value Chain AnalysisWhat is the primary aim of value chain analysis?To increase marginTo decrease production costTo increase salesProduct development

Question

Value Chain AnalysisWhat is the primary aim of value chain analysis?To increase marginTo decrease production costTo increase salesProduct development

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Solution

The primary aim of value chain analysis is to increase margin. This is achieved by identifying key activities within the organization that add value to the final product or service and optimizing these to improve efficiency, reduce costs, and create competitive advantage.

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In what ways does Value Chain Analysis help organizations identify their competitive advantages?

A value chain is the sequence of business processes in which:Question 16Select one:managers determine pricescosts are determined with activity-based principlesall non-value-added activities are eliminatedvalue is added to a product or service

An organisation’s value chain provides a framework for considering a range of issues such as:I.    reinforcing initiatives such as costing methodsII.   breaking down traditional representations of organisational activity.III.  reflecting value chain relationships in terms of cost.IV.   encourages a broader organisational viewQuestion 18Select one:II and IVAll options are correct - I,II,III and IVI and IIII and II

Porter's value chain analysis

The business value of an effective supply chain management system includes all of the following exceptQuestion 9Answera.faster time to market.b.cost reduction.c.supply matched to demand.d.increased inventory levels.

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