Define value, margin, and value chain
What will be an ideal response?
Porter defined value as the amount of money that a customer is willing to pay for a resource, product, or service. The difference between the value that an activity generates and the cost of the activity is called the margin. A value chain is a network of value-creating activities. According to Porter, that generic chain consists of five primary activities and four support activities.
You might also like to view...
In which of the following cases did the Supreme Court hold that an individual who applies for Social Security disability benefits may still be a "qualified individual with a disability" within the meaning of the ADA??
A) ?Cleveland v. Policy Management Systems B) ?Board of Trustees of the University of Alabama v. Garrett C) ?Albertsons, Inc. v. Kirkingburg D) ?Sutton v. United Air Lines, Inc.
Three important security features that 802.11i addresses include authentication, key management, and data transfer privacy
Indicate whether the statement is true or false
In an entity relationship diagram, rectangles represent entities, and ovals represent relationships
Indicate whether the statement is true or false
Robichau Inc. reported the following results from last year's operations: Sales$6,300,000Variable expenses 4,930,000Contribution margin 1,370,000Fixed expenses 803,000Net operating income$ 567,000Average operating assets$3,000,000At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales$1,530,000 Contribution margin ratio 30% of salesFixed expenses$306,000 The company's minimum required rate of return is 20%.The ROI for this year's investment opportunity considered alone is closest to:
A. 10.0% B. 50.0% C. 51.0% D. 17.0%