Value creation by an organization takes place at three stages: input, conversion, and output. Out of these three stages, only the conversion stage is affected by the environment in which the organization operates.

Question

Quizplus · Accepted Answer

All three stages of value creation (input, conversion, and output) can be affected by the environment in which the organization operates. For example, the availability and cost of inputs can be affected by factors such as natural disasters or trade policies, while the output stage can be affected by market demand and competition.

Value Creation by an Organization Takes Place at Three Stages