Question 34 (1 point) A value chain should list primary and supporting activitie

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Question 34 (1 point) A value chain should list primary and supporting activities that a firm does differently from competitors, including what it does not do. True False Save Question 35 (1 point)E A firm that discovers factors that contribute to higher distribution costs for itself than its competitors incur has identified a cost driver True False Save Question 36 (1 point) B A company that experienced problems with its wholesalers decided to replace them by building warehousing facilitie:s from which to distribute its products and to hire its own sales force. This is called integrational stratetic management. oA) True B) False Save

Explanation / Answer

34) True, Value chain analysis helps businesses to gain an advantage over their competition. A value chain analysis helps you recognize ways in which you can reduce cost, optimize effort, eliminate waste and increase profitability. A business begins by identifying each part of its production process, noting steps that can be eliminated and other possible improvements. It helps an organization to identify primary and supporting activities that add value to its final product. It helps an organization to deliver high quality products to its customers at low costs.

35) True, Cost driver is an activity that helps to identify the root cause of why a particular costs occurs. Therefore, the statement a firm that discovers factors that contribute to higher distribution costs for itself than its competitors incur has identified a cost driver holds true. Cost drivers are basically the factors that causes changes in the cost of an activity.

36) True, integrational strategic management allows a firm to gain control over its distributors, suppliers and competitors. When an organization engages in sale or after sales services it pursues forward integration strategy.

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