When should a firm configure its value chain to maximize value at each stage?
A)When government regulations relax
B)When cost pressures are intense
C)When rapid imitation is expected
D)When the number of consumers increases
E)When incumbent competitors exist

Question

Quizplus · Accepted Answer

A wholly owned subsidiary may be required if a firm is trying to realize location and experience curve economies (as firms pursuing global and transnational strategies try to do). When cost pressures are intense, it may pay a firm to configure its value chain in such a way that the value added at each stage is maximized.

When Should a Firm Configure Its Value Chain to Maximize