Question

A value chain is a set of: a) similarly profitable firms competing against each other in any given industry. b) large firms that are vertically integrated. c) activities through which a product or service is created and delivered to customers. d) a large number of small firms that dominate a given market. e) robotically controlled conveyor belts that deliver product quickly from manufacturing stations to shipping containers.

Answer 1

Answer:

c) activities through which a product or service is created and delivered to customers.

Explanation:

A value chain is the entire range of activities that a company undertakes to create a product or a service. These activities include design,  production, marketing and distribution.  A manufacturing company will have its value chain processes start with the procurement of raw materials and end when the product is sold.

Companies will, from time to time, perform value chain analysis.  Value chain analysis involves a detailed examination of all the business processes and procedures. The purpose of the analysis is to improve the efficiency of the value chain. An efficient system of production has cost-saving benefits to the organization.