Value chain analysis is a tool used to:
A) Analyze a firm's external environment for value-creating opportunities
B) Analyze a firm's primary and support activity in isolation from influences of the external environment
C) Understand the parts of the firm's operation that create value and those that do not
D) Identify the firm's core competencies in each of the primary activities of the firm

Question

Quizplus · Accepted Answer

Value chain analysis helps to identify the different activities within a firm and determine which ones add value to the products or services offered by the firm. This helps to understand the areas where the firm can improve efficiency and reduce costs, while also identifying opportunities for creating customer value. It does not focus on external environment analysis, isolation of activities, or identifying core competencies in each activity.

Value Chain Analysis Is a Tool Used To