Answered: A company's strategic options for…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

A company's strategic options for internally performed value chain activities do not include:

A) implementing the use of best practices, particularly for high-cost activities.

B) switching to activity-based costing.

C) investing in productivity-enhancing, cost-saving technological improvements.

D) revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities).

E) outsourcing the performance of high-cost activities to vendors that can perform them more cheaply.

Expert Solution

Step 1

A value chain system worked on an idea depicting the full chain of a business' activities in the development of goods or services- from the initial gathering of materials all the way via its conveyance to business, & in the mid between. A value chain analysis is a point at which a business distinguishes its primary & secondary activities or sub-activities and evaluates the productivity of each point.