Analysis of a firm's internal value chain:
A)Is a systematic way of identifying opportunities for reducing costs without damaging value.
B)Is primarily a management consultancy tool
C)Is an unnecessary activity for experienced managers.
D)Is a job for the accounting department.

Question

Quizplus · Accepted Answer

Analyzing a firm's internal value chain involves breaking down the company's activities into specific components and assessing how each component adds value to the final product or service. This analysis can reveal areas where costs can be reduced without negatively impacting value. It is an important tool for managers to identify potential cost savings and improve efficiency within the organization. While it may sometimes involve consultants or the accounting department, it is ultimately the responsibility of experienced managers to conduct this analysis.

Analysis of a Firm's Internal Value Chain