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Question 4: Which of the following is incorrect with regard to value chain analysis?
A. Value chain analysis must be used in conjunction with the strategic plan of the organization.
B. Value chain analysis is critical to assessing the competitive advantage of a firm.
C. Value chain analysis is a strategic tool that assists the firm in determining how important the
perceived
value of the buyers is with respect to the market the firm operates in.
D. The value chain starts with the firm and goes all the way through to the end users of the product.
Correct Answer: D
Explanation:
Choice "d" is an incorrect statement and the correct choice. The best description of a value chain is
that
value starts with the suppliers who provide the raw materials for a production process, continues
with the
firm and its strategic plan, continues with the value created by the customers, and then ends with th
e
disposal and recycling of the materials.
Choices "a", "b", and "c" are incorrect, as all are correct statements with regard to value chain
analysis.
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