Which of the following is true of value chain analysis in a service organization?
A) Outbound logistics include receiving, storing, and disseminating inputs to the product.
B) Inbound logistics include collecting, storing, and physically distributing the product to buyers.
C) Value chain analysis has no direct application to service businesses.
D) Most of the value in a service company is generated by the operations, marketing and sales, and service activities.

Question

Quizplus · Accepted Answer

In a service organization, most of the value is generated by the operations, marketing and sales, and service activities. The inbound logistics and outbound logistics components are not relevant to a service organization as they are focused on physical products, which service organizations do not typically produce. Therefore, value chain analysis does have direct application to service businesses.

Which of the Following Is True of Value Chain Analysis