Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.
A) market development
B) product development
C) business portfolio
D) value chain
E) supplier chain

Question

Quizplus · Accepted Answer

The concept of a value chain was introduced by Michael Porter in his book "Competitive Advantage: Creating and Sustaining Superior Performance." A value chain is a series of activities that a company performs to create value for its customers. Each department that carries out value-creating activities is a link in the company's value chain. Therefore, option D is the correct answer. Option A (market development) and option B (product development) do not pertain to the concept of a value chain. Option C (business portfolio) is related to a company's collection of business units, but it does not directly relate to the concept of a value chain. Option E (supplier chain) is related to the network of suppliers that a company uses to produce its products, but it is not the same as a value chain.

Each Department in a Company That Carries Out Value-Creating Activities