Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.
A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain

Question

Quizplus · Accepted Answer

The concept of the value chain was introduced by Michael Porter in his book "Competitive Advantage" to describe the sequence of activities required to deliver a product or service to customers. The value chain is divided into two main categories: the primary activities, which are directly involved in the creation and delivery of the product or service, and the support activities, which facilitate the primary activities.
The internal value chain of a company consists of all the activities that are required to create and deliver a product or service, from the procurement of raw materials to the delivery of the finished product to the customer. Each department in a company that carries out value-creating activities can be considered a link in the internal value chain, as they contribute to the creation of value for the customer.
Therefore, the correct answer is D) internal value chain.

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