SEVI 30103 EXAM 2 STUDY GUIDE
Value - Answers - the worth customers place on a firm's products/ services
Creating value - Answers - achieved when the firm's activities provide goods or services
that customers are willing to pay for more than he cost of production
Goal of Value Creation - Answers - to use resources and capabilities to create superior
value and achieve competitive advantage
Value Chain - Answers - a model describing how a firm creates value through a series
of activities
Value Chain Analysis - Answers - identifies which activities add value and which do not,
helping firms improve efficiency and effectiveness
Primary activities - Answers - sequential activities of the value chain that refer to the
physical creation of the product or service, its sale and transfer to the buyer, and its
service after sale
Support activities - Answers - activities of the value chain that either add value by
themselves or add value through important relationships with both primary activities and
other support actvities
Primary examples - Answers - inbound logistics, operations, outbound logistics,
marketing and sales, and service
Support examples - Answers - procurement, technology development, human resource
management, and general administration
The difference between the value chain for service industries and the value chain for
product-based industries - Answers - The service value chain emphasizes people,
relationships, and knowledge, while the product value chain emphasizes materials,
processes, and distribution
Internal Interrelationships - Answers - activities within the firm reinforce one another (ex:
efficient operations enable faster delivery)
External Interrelationships - Answers - collaboration with suppliers and customers can
enhance value (ex: co-innovation, supply chain efficiency)
Tangible resources - Answers - resources that have physical attributes and are visible
(ex: physical assets, financial resources, organizational resources, and technological
resources)
Value - Answers - the worth customers place on a firm's products/ services
Creating value - Answers - achieved when the firm's activities provide goods or services
that customers are willing to pay for more than he cost of production
Goal of Value Creation - Answers - to use resources and capabilities to create superior
value and achieve competitive advantage
Value Chain - Answers - a model describing how a firm creates value through a series
of activities
Value Chain Analysis - Answers - identifies which activities add value and which do not,
helping firms improve efficiency and effectiveness
Primary activities - Answers - sequential activities of the value chain that refer to the
physical creation of the product or service, its sale and transfer to the buyer, and its
service after sale
Support activities - Answers - activities of the value chain that either add value by
themselves or add value through important relationships with both primary activities and
other support actvities
Primary examples - Answers - inbound logistics, operations, outbound logistics,
marketing and sales, and service
Support examples - Answers - procurement, technology development, human resource
management, and general administration
The difference between the value chain for service industries and the value chain for
product-based industries - Answers - The service value chain emphasizes people,
relationships, and knowledge, while the product value chain emphasizes materials,
processes, and distribution
Internal Interrelationships - Answers - activities within the firm reinforce one another (ex:
efficient operations enable faster delivery)
External Interrelationships - Answers - collaboration with suppliers and customers can
enhance value (ex: co-innovation, supply chain efficiency)
Tangible resources - Answers - resources that have physical attributes and are visible
(ex: physical assets, financial resources, organizational resources, and technological
resources)
