Value Chains Exam prep
Value chain - correct answersis a network of facilities and processes that describes the flow of goods,
services, information, and financial transactions from suppliers through the facilities and processes that
create goods and services and deliver them to customers.
-Create goods and services and deliver them to customers
-Views an organization from the customer's perspective
They are easier to apply the services and goods they are broader.
Supply Chain: Portion of the value chain that focuses on: - correct answersPhysical movement of goods
and materials
Supporting flows of information and financial transactions through the supply, production, and
distribution processes
The Concept of Value - correct answersUnderlying purpose of every organization is to provide value to
its customer and stakeholders
1. Value - correct answersPerception of the benefits associated with goods and services (the customer
benefit package) in relation to what buyers are willing to pay for them.
2. Value proposition - correct answersan innovation, service, or feature intended to make a company or
product attractive to customers.
Value Chain Paradigms and Perspectives: Input-Output Model - correct answersA value chain begins
with suppliers who provide inputs that are transformed into value-added goods and services through
processes that are supported by resources such as equipment and facilities, labor, money, and
information.
These goods and services are
delivered or provided to customers
and targeted market segments.
To increase value - correct answersa. increase perceived benefits while holding price or cost constant;
b. increase perceived benefits while reducing price or cost; or
c. decrease price or cost while holding perceived benefits constant.
Vertical Integration - correct answersProcess of acquiring and consolidating elements of a value chain to
achieve more control
Vertical Integration: Forward integration - correct answersAcquiring capabilities toward distribution or
even customers
Vertical Integration: Backward integration - correct answersAcquiring capabilities toward suppliers
Outsourcing - correct answersProcess of having suppliers provide goods and services that were
previously provided internally
Value chain - correct answersis a network of facilities and processes that describes the flow of goods,
services, information, and financial transactions from suppliers through the facilities and processes that
create goods and services and deliver them to customers.
-Create goods and services and deliver them to customers
-Views an organization from the customer's perspective
They are easier to apply the services and goods they are broader.
Supply Chain: Portion of the value chain that focuses on: - correct answersPhysical movement of goods
and materials
Supporting flows of information and financial transactions through the supply, production, and
distribution processes
The Concept of Value - correct answersUnderlying purpose of every organization is to provide value to
its customer and stakeholders
1. Value - correct answersPerception of the benefits associated with goods and services (the customer
benefit package) in relation to what buyers are willing to pay for them.
2. Value proposition - correct answersan innovation, service, or feature intended to make a company or
product attractive to customers.
Value Chain Paradigms and Perspectives: Input-Output Model - correct answersA value chain begins
with suppliers who provide inputs that are transformed into value-added goods and services through
processes that are supported by resources such as equipment and facilities, labor, money, and
information.
These goods and services are
delivered or provided to customers
and targeted market segments.
To increase value - correct answersa. increase perceived benefits while holding price or cost constant;
b. increase perceived benefits while reducing price or cost; or
c. decrease price or cost while holding perceived benefits constant.
Vertical Integration - correct answersProcess of acquiring and consolidating elements of a value chain to
achieve more control
Vertical Integration: Forward integration - correct answersAcquiring capabilities toward distribution or
even customers
Vertical Integration: Backward integration - correct answersAcquiring capabilities toward suppliers
Outsourcing - correct answersProcess of having suppliers provide goods and services that were
previously provided internally
