Question

Which of the following decisions does a firm need to make as soon as it has identified the activities from the value chain that are bringing the highest added value to their customers?
A. Target high value-adding activities to further enhance their value.
B. Target low value-adding activities to increase their value.
C. Perform some combination of the two.
D. All of the above.

Answer 1

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Value Chain refers to the company conducting interrelated operational activities during the process of turning raw materials into finished products. Once a company has identified what activities into the value chain bring the highest added value, the firm should attempt to improve those activities to reach perfection. But there could also be activities providing low added value, thus, the company must pay special attention to those as well for corrections to be made.