MANA 4322:012 CH3/CH4 Test
Questions and Actual Answers.
Value-Chain Analysis - Answer Views the organization as a sequential process of value-
creating activities
Value - Answer - The amount that buyers are willing to pay for what a firm provides them
- Measured by total revenue
Value Chain: Primary Activities definition - Answer Contribute to the physical creation of the
product or service, its sale and transfer to the buyer, and its service after the sale
Value Chain Primary Activities includes... - Answer - Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
Value Chain: Support Activities definition - Answer Either add value by themselves or add
value through important relationships with both primary activities and other support activities
Value Chain Support Activities includes... - Answer - Procurement
- Technology development
- Human resource management
- General administration
How to get the most out of Value-Chain Analysis - Answer - View the concept in its broadest
context, without regard to the boundaries of your own organization
- Include suppliers, customers, and alliance partners
Inbound Logistics - Answer - Primarily associated with receiving, storing, and distributing
inputs to the product
- Includes material handling, warehousing, inventory control, vehicle scheduling, and returns to
suppliers
Operations - Answer - Include all activities associated with transforming inputs into the final
product form
, - Ex: machining, packaging, assembly, testing, printing, and facility operations
Outbound Logistics - Answer - Associated with collecting, storing, and distributing the
product or service to buyers
- Include finished goods, warehousing, material handling, delivery vehicle operation, order
processing, and scheduling
Marketing and Sales - Answer - Associated with purchases of products and services by end
users and the inducements used to get them to make purchases
- Includes advertising, promotion, sales force, quoting, channel selection, channel relations, and
pricing
Service - Answer - Includes all actions associated with providing service to enhance or
maintain the value of the product
- Ex: installation, repair, training, parts supply, and product adjustment
Procurement - Answer - The function of purchasing inputs used in the firm's value chain, not
the purchased inputs themselves
- Includes raw materials, lab equipment, office equipment, and buildings
Technology Development - Answer Technology development that supports the entire value
chain
Human Resource Management - Answer - Consists of activities involved in the recruiting,
hiring, training, development, and compensation of all types of personnel
- Supports both individual primary and support activities and the entire value chain
General Administration - Answer - Consists of activities such as general management,
planning, finance, accounting, legal and government affairs, quality management, and
information systems
- Typically supports entire value chain and not individual activities
Two Levels of Relationships among Value-Chain Activities - Answer 1. Interrelationships
among activities within the firm
2. Relationships among activities within the firm and with other stakeholders
Connected Strategies - Answer Involves moving away from having episodic interactions with
suppliers and customers to having ongoing connected relationships with them
Questions and Actual Answers.
Value-Chain Analysis - Answer Views the organization as a sequential process of value-
creating activities
Value - Answer - The amount that buyers are willing to pay for what a firm provides them
- Measured by total revenue
Value Chain: Primary Activities definition - Answer Contribute to the physical creation of the
product or service, its sale and transfer to the buyer, and its service after the sale
Value Chain Primary Activities includes... - Answer - Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
Value Chain: Support Activities definition - Answer Either add value by themselves or add
value through important relationships with both primary activities and other support activities
Value Chain Support Activities includes... - Answer - Procurement
- Technology development
- Human resource management
- General administration
How to get the most out of Value-Chain Analysis - Answer - View the concept in its broadest
context, without regard to the boundaries of your own organization
- Include suppliers, customers, and alliance partners
Inbound Logistics - Answer - Primarily associated with receiving, storing, and distributing
inputs to the product
- Includes material handling, warehousing, inventory control, vehicle scheduling, and returns to
suppliers
Operations - Answer - Include all activities associated with transforming inputs into the final
product form
, - Ex: machining, packaging, assembly, testing, printing, and facility operations
Outbound Logistics - Answer - Associated with collecting, storing, and distributing the
product or service to buyers
- Include finished goods, warehousing, material handling, delivery vehicle operation, order
processing, and scheduling
Marketing and Sales - Answer - Associated with purchases of products and services by end
users and the inducements used to get them to make purchases
- Includes advertising, promotion, sales force, quoting, channel selection, channel relations, and
pricing
Service - Answer - Includes all actions associated with providing service to enhance or
maintain the value of the product
- Ex: installation, repair, training, parts supply, and product adjustment
Procurement - Answer - The function of purchasing inputs used in the firm's value chain, not
the purchased inputs themselves
- Includes raw materials, lab equipment, office equipment, and buildings
Technology Development - Answer Technology development that supports the entire value
chain
Human Resource Management - Answer - Consists of activities involved in the recruiting,
hiring, training, development, and compensation of all types of personnel
- Supports both individual primary and support activities and the entire value chain
General Administration - Answer - Consists of activities such as general management,
planning, finance, accounting, legal and government affairs, quality management, and
information systems
- Typically supports entire value chain and not individual activities
Two Levels of Relationships among Value-Chain Activities - Answer 1. Interrelationships
among activities within the firm
2. Relationships among activities within the firm and with other stakeholders
Connected Strategies - Answer Involves moving away from having episodic interactions with
suppliers and customers to having ongoing connected relationships with them
