ICYB · Question #94
The Value Chain in an organization is the sum total of all the processes which occur in the business to take inputs and turn them into customer desired outputs.
The correct answer is A. True. A (True) is correct because Michael Porter's Value Chain model defines an organization's value chain as exactly this - the complete sequence of activities that transform raw inputs (materials, labor, information) into outputs that customers value and are willing to pay for…
Question
The Value Chain in an organization is the sum total of all the processes which occur in the business to take inputs and turn them into customer desired outputs.
Options
- ATrue
- BFalse
How the community answered
(49 responses)- A88% (43)
- B12% (6)
Explanation
A (True) is correct because Michael Porter's Value Chain model defines an organization's value chain as exactly this - the complete sequence of activities that transform raw inputs (materials, labor, information) into outputs that customers value and are willing to pay for.
There are no distractors here since this is a True/False question; B (False) is simply wrong because it contradicts the established definition of a Value Chain as articulated by Porter in his 1985 framework.
Memory tip: Think of the Value Chain as a literal chain - each link is a business process (inbound logistics, operations, outbound logistics, marketing, service), and the entire chain only has value when it successfully delivers something the customer wants at the other end. If any link breaks, the chain fails to deliver value.
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