Which of the following actions of a sugar manufacturing company is an extension of its value chain?
A) The company intensifies its marketing activities.
B) The company buys a large sugar cane plantation in Cuba.
C) The company adds a few more distributors.
D) The company launches a new promotional program.

Question

Quizplus · Accepted Answer

Buying a sugar cane plantation in Cuba is an extension of the company's value chain as it involves acquiring or investing in upstream activities, which are part of the value chain (i.e., the activities that the company performs to bring a product or service to the market). The plantation is where the raw material for sugar production (sugar cane) is grown, and its acquisition allows the company to have more control over the quality and supply of its inputs, which can improve its operational efficiency and reduce costs. The other choices (A, C, D) are not extensions of the value chain but rather enhancements of other business functions such as marketing and promotions, which are important but not part of the value chain.

Which of the Following Actions of a Sugar Manufacturing Company