What changes must a company make if its value chain's margin is negative?
A) The value must be decreased.
B) The costs of the value chain need to be increased.
C) The number of stages in the generic chain must be increased.
D) The costs of the value chain need to be reduced.

Question

Quizplus · Accepted Answer

If a company's value chain margin is negative, it means that the costs incurred in creating the product or service are higher than the revenue generated from it. Therefore, the company must find ways to reduce costs in the value chain. This can be achieved by improving efficiency in processes, renegotiating supplier contracts, or reducing waste. Cutting costs should not mean compromising on quality or customer satisfaction.

What Changes Must a Company Make If Its Value Chain's