Value Chain
- What is the primary goal of value chain analysis?
- A) Increase production costs
- B) Identify activities that create value for customers and improve competitive advantage
- C) Limit marketing campaigns
- D) Reduce employee salaries
Answer: B) Identify activities that create value for customers and improve competitive advantage
- Who developed the concept of the value chain?
- A) Philip Kotler
- B) Michael Porter
- C) Peter Drucker
- D) Henry Ford
Answer: B) Michael Porter
- The value chain is used to analyze:
- A) The marketing budget
- B) The activities within a company that create value for customers
- C) Employee productivity
- D) Product sales growth
Answer: B) The activities within a company that create value for customers
- The value chain is divided into which two types of activities?
- A) Sales and Marketing
- B) Primary and Support
- C) Finance and Operations
- D) Internal and External
Answer: B) Primary and Support
- Which of the following is a primary activity in the value chain?
- A) Human Resources Management
- B) Operations
- C) Technology Development
- D) Firm Infrastructure
Answer: B) Operations
- Inbound logistics in the value chain involves:
- A) Handling customer complaints
- B) Receiving, storing, and distributing raw materials
- C) Marketing and advertising products
- D) Product delivery
Answer: B) Receiving, storing, and distributing raw materials
- Operations in the value chain refers to:
- A) Converting raw materials into finished products
- B) Managing sales teams
- C) Recruiting new employees
- D) Identifying new market segments
Answer: A) Converting raw materials into finished products
- Outbound logistics in the value chain deals with:
- A) Promoting products
- B) Delivering finished products to customers
- C) Product pricing
- D) Inventory management
Answer: B) Delivering finished products to customers
- Which activity in the value chain is focused on creating demand for the product?
- A) Procurement
- B) Marketing and Sales
- C) Human Resources Management
- D) Technology Development
Answer: B) Marketing and Sales
- Service as a primary activity in the value chain refers to:
- A) Selling products
- B) Maintaining and enhancing the product after purchase
- C) Recruiting employees
- D) Packaging products
Answer: B) Maintaining and enhancing the product after purchase
- Procurement as a support activity in the value chain involves:
- A) Developing new products
- B) Purchasing the raw materials and supplies required for production
- C) Promoting products to customers
- D) Delivering finished goods
Answer: B) Purchasing the raw materials and supplies required for production
- Which support activity in the value chain involves recruiting, hiring, and training employees?
- A) Firm Infrastructure
- B) Human Resources Management
- C) Technology Development
- D) Procurement
Answer: B) Human Resources Management
- The role of technology development in the value chain is to:
- A) Reduce the cost of raw materials
- B) Support the development of new products and improve production processes
- C) Increase employee salaries
- D) Limit customer engagement
Answer: B) Support the development of new products and improve production processes
- Firm infrastructure in the value chain includes:
- A) Marketing campaigns
- B) General management, planning, finance, and legal functions
- C) Sales training
- D) Packaging of finished products
Answer: B) General management, planning, finance, and legal functions
- Which of the following is NOT a primary activity in the value chain?
- A) Inbound Logistics
- B) Firm Infrastructure
- C) Operations
- D) Service
Answer: B) Firm Infrastructure
- The value chain helps in identifying:
- A) Ways to cut marketing budgets
- B) Activities that add value and those that do not add value to customers
- C) Employee salary packages
- D) The best advertising platforms
Answer: B) Activities that add value and those that do not add value to customers
- The value chain helps a company to gain a competitive advantage by:
- A) Reducing product quality
- B) Optimizing activities to create maximum value at the lowest cost
- C) Increasing production time
- D) Limiting the number of product features
Answer: B) Optimizing activities to create maximum value at the lowest cost
- Support activities in the value chain primarily assist:
- A) Sales teams
- B) Primary activities in creating value for the customer
- C) Competitors in the market
- D) Product pricing
Answer: B) Primary activities in creating value for the customer
- Technology development in the value chain includes:
- A) Building relationships with suppliers
- B) Improving product design, automation, and improving production processes
- C) Promoting products
- D) Managing customer complaints
Answer: B) Improving product design, automation, and improving production processes
- In the value chain, firm infrastructure provides support through:
- A) Manufacturing products
- B) Planning, finance, legal, and overall management of the firm
- C) Advertising campaigns
- D) Sales promotions
Answer: B) Planning, finance, legal, and overall management of the firm
- Inbound logistics add value to the product by:
- A) Selling products to customers
- B) Efficiently managing the receipt, storage, and internal movement of raw materials
- C) Promoting products to customers
- D) Hiring employees
Answer: B) Efficiently managing the receipt, storage, and internal movement of raw materials
- Primary activities in the value chain directly relate to:
- A) Supporting the company’s infrastructure
- B) The creation of the product or service, from production to delivery
- C) Hiring new employees
- D) Financial reporting
Answer: B) The creation of the product or service, from production to delivery
- Support activities in the value chain are aimed at:
- A) Reducing production quality
- B) Assisting primary activities to make them more efficient
- C) Increasing product prices
- D) Limiting customer interactions
Answer: B) Assisting primary activities to make them more efficient
- The value chain concept emphasizes:
- A) Reducing customer engagement
- B) Analyzing the contribution of each activity to a company’s value and profitability
- C) Hiring new employees
- D) Reducing marketing expenses
Answer: B) Analyzing the contribution of each activity to a company’s value and profitability
- Outbound logistics includes:
- A) Managing raw materials
- B) Activities related to warehousing, order fulfillment, and delivering products to customers
- C) Handling customer service requests
- D) Developing new technology
Answer: B) Activities related to warehousing, order fulfillment, and delivering products to customers
- Value chain analysis helps a company to identify:
- A) Areas for cost reduction and increased efficiency
- B) Competitors in the market
- C) New employee recruitment strategies
- D) The best advertising platforms
Answer: A) Areas for cost reduction and increased efficiency
- Service activities in the value chain add value by:
- A) Delivering products to customers
- B) Providing after-sales support and maintenance to ensure customer satisfaction
- C) Developing employee skills
- D) Handling raw materials
Answer: B) Providing after-sales support and maintenance to ensure customer satisfaction
- Procurement in the value chain is primarily concerned with:
- A) Purchasing the inputs required for the company’s operations
- B) Handling customer complaints
- C) Promoting products to customers
- D) Setting product prices
Answer: A) Purchasing the inputs required for the company’s operations
- The value chain can help a company achieve:
- A) Higher production costs
- B) Competitive advantage by understanding and enhancing the activities that add the most value
- C) Reduced market share
- D) Employee dissatisfaction
Answer: B) Competitive advantage by understanding and enhancing the activities that add the most value
- Marketing and sales as a primary activity involve:
- A) Procuring raw materials
- B) Strategies and activities to create demand for products and persuade customers to buy
- C) Delivering products to stores
- D) Developing new technologies
Answer: B) Strategies and activities to create demand for products and persuade customers to buy
- Which of the following is an example of adding value in the value chain?
- A) Increasing production time
- B) Providing efficient customer support services
- C) Reducing the number of suppliers
- D) Focusing only on cost reduction
Answer: B) Providing efficient customer support services
- In the value chain, firm infrastructure provides support for:
- A) Only primary activities
- B) The entire organization, ensuring smooth functioning and value creation
- C) Reducing sales team size
- D) Advertising campaigns
Answer: B) The entire organization, ensuring smooth functioning and value creation
- Value chain analysis can be used to identify:
- A) Product sales figures
- B) Bottlenecks in production that reduce efficiency
- C) Customer income levels
- D) The company’s profit margin
Answer: B) Bottlenecks in production that reduce efficiency
- Support activities are important in the value chain because they:
- A) Handle direct customer interaction
- B) Assist primary activities and help create more value in the final product
- C) Reduce production quality
- D) Set the company’s marketing strategy
Answer: B) Assist primary activities and help create more value in the final product
- Firm infrastructure in the value chain includes which of the following functions?
- A) Marketing and sales
- B) Finance, accounting, and overall company management
- C) Product manufacturing
- D) Procurement
Answer: B) Finance, accounting, and overall company management
- Which of the following is an example of a primary activity in the value chain?
- A) Technology Development
- B) Human Resources Management
- C) Service
- D) Firm Infrastructure
Answer: C) Service
- Inbound logistics add value to the production process by:
- A) Managing relationships with suppliers to improve efficiency
- B) Handling employee recruitment
- C) Promoting products to customers
- D) Setting pricing strategies
Answer: A) Managing relationships with suppliers to improve efficiency
- Primary activities are directly involved in:
- A) Producing, marketing, delivering, and servicing products
- B) Managing employee benefits
- C) Limiting product offerings
- D) Reducing advertising costs
Answer: A) Producing, marketing, delivering, and servicing products
- A key benefit of value chain analysis is:
- A) Reducing marketing efforts
- B) Understanding how each activity adds or reduces value and improving inefficiencies
- C) Limiting customer interactions
- D) Cutting employee benefits
Answer: B) Understanding how each activity adds or reduces value and improving inefficiencies
- Technology development as a support activity aims to:
- A) Increase production costs
- B) Support the development of new and improved processes and products
- C) Manage employee benefits
- D) Focus on outbound logistics only
Answer: B) Support the development of new and improved processes and products
- The value chain concept emphasizes creating value for:
- A) Suppliers
- B) Customers
- C) Shareholders only
- D) Competitors
Answer: B) Customers
- Procurement in the value chain helps in:
- A) Developing marketing strategies
- B) Acquiring necessary materials and services required for production
- C) Hiring new employees
- D) Setting pricing strategies
Answer: B) Acquiring necessary materials and services required for production
- Operations as a primary activity in the value chain aims to:
- A) Improve product delivery
- B) Transform inputs into final products or services efficiently
- C) Handle customer complaints
- D) Set promotional strategies
Answer: B) Transform inputs into final products or services efficiently
- Service activities help add value by:
- A) Reducing production quality
- B) Ensuring customer satisfaction and product functionality post-purchase
- C) Limiting customer engagement
- D) Lowering the price of the product
Answer: B) Ensuring customer satisfaction and product functionality post-purchase
- Support activities like human resource management contribute by:
- A) Handling inbound logistics
- B) Recruiting and training employees, improving their productivity
- C) Promoting finished products
- D) Delivering products to customers
Answer: B) Recruiting and training employees, improving their productivity
- Outbound logistics in the value chain involves:
- A) Manufacturing products
- B) Storing, distributing, and delivering finished products to customers
- C) Managing customer relationships
- D) Conducting promotional campaigns
Answer: B) Storing, distributing, and delivering finished products to customers
- The value chain helps identify areas for:
- A) Cost increases
- B) Value creation and operational efficiency improvement
- C) Employee layoffs
- D) Competitor analysis
Answer: B) Value creation and operational efficiency improvement
- Marketing and sales activities in the value chain are intended to:
- A) Promote products and persuade customers to buy
- B) Manage inventory
- C) Handle employee recruitment
- D) Develop supplier relationships
Answer: A) Promote products and persuade customers to buy
- Which of the following activities is classified as a support activity?
- A) Service
- B) Technology Development
- C) Inbound Logistics
- D) Outbound Logistics
Answer: B) Technology Development
- The value chain concept helps companies to:
- A) Focus only on reducing costs
- B) Understand how different activities contribute to customer value and identify competitive advantages
- C) Reduce marketing expenses
- D) Limit customer service offerings
Answer: B) Understand how different activities contribute to customer value and identify competitive advantages
