In every industry, companies are embedded in a(n)________, which has a cost structure associated with it that dictates the margins needed to achieve profitability.

Question

Quizplus · Accepted Answer

A value network refers to the group of organizations that work together to deliver a product or service to the end customer. Each organization in the value network has a specific role to play and the cost structure associated with it contributes to the overall cost of the product or service. The margins needed to achieve profitability are dictated by the cost structure of the value network. Therefore, option D is the best choice as it explains the concept of cost structure and the relationship between the value network and profitability.

In Every Industry, Companies Are Embedded in A(n)________, Which Has