Which of the following is true of value chain analysis in a service organization?
A)Value chain analysis has no direct application to service businesses.
B)Most of the value in a manufacturing company is generated by the operations,marketing and sales,and service activities.
C)Inbound logistics is the function that creates most value in service organizations.
D)Outbound logistics is the function that creates most value in service-oriented companies.

Question

Quizplus · Accepted Answer

Value chain analysis can be applied to both manufacturing and service organizations. However, in service organizations, most of the value is generated by activities such as marketing, sales, and service, rather than operations or inbound/outbound logistics as is the case in manufacturing organizations. Therefore, option B is the correct answer. Option A is incorrect because value chain analysis can be applied to service businesses. Option C and D are also incorrect as neither inbound nor outbound logistics create the most value in service organizations.

Which of the Following Is True of Value Chain Analysis