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 value must be increased so that it exceeds the cost.

Question

Quizplus · Accepted Answer

If a company's value chain margin is negative, it means that the cost of producing and selling its products or services exceeds the value that customers place on them. To improve the margin, the company needs to increase the value it provides through its value chain so that it exceeds the cost. This can be achieved by improving the quality of its products or services, reducing costs, optimizing its supply chain, or finding ways to differentiate itself from competitors. None of the other options listed (decreasing the value, increasing costs, or adding stages to the value chain) would effectively address the problem of a negative margin.

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