Analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred best describes:
A) affinity clustering.
B) business process reengineering.
C) value chain analysis.
D) resource availability.
E) technical difficulty.

Question

Quizplus · Accepted Answer

Value chain analysis is a method used to analyze a company's activities to identify and evaluate where value is added to products or services and the costs incurred. The analysis involves identifying the primary and secondary activities that contribute to the value chain and analyzing each to determine how the company can improve efficiency, reduce costs, and differentiate itself from competitors. Other options such as affinity clustering, business process reengineering, resource availability, and technical difficulty are all related to different aspects of organizational analysis, but they do not specifically relate to identifying value added and cost incurred in the same way that value chain analysis does.

Analyzing an Organization's Activities to Determine Where Value Is Added