Which of the following is TRUE of a value chain?
A) It is a network of value-creating activities.
B) It consists of only primary activities.
C) It is specific to manufacturing industries.
D) It nullifies the importance of support activities.

Question

Quizplus · Accepted Answer

A value chain consists of a series of value-creating activities, both primary and support, that occur as a product or service progresses from raw materials to a final delivered product. It can apply to all industries, not just manufacturing, and includes both primary activities (such as inbound logistics, operations, and outbound logistics) and support activities (such as procurement, technology development, human resource management, and firm infrastructure). It does not nullify the importance of support activities, as they are necessary to ensure the effectiveness of the primary activities.

Which of the Following Is TRUE of a Value Chain