Asked by Nargiza Tashmuradova on Jun 03, 2024

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On a value-chain analysis using an SPA,a firm determines that its performance is low in the area of operations.Operations is an area of low importance to the firm.Which of the following would be the best recommendation for the firm?

A) Do not focus additional effort on operations.
B) Focus more effort and resources on operations.
C) Modify the value chain to emphasize operations.
D) Re-evaluate how the firm handles current operations.

Value-Chain Analysis

An analytical framework for identifying business activities that add value to the final product or service in order to gain competitive advantage.

SPA

Typically stands for Sales and Purchase Agreement, a legally binding contract outlining the terms of sale between a buyer and seller.

Operations

Encompasses all the activities involved in the production, selling, and distribution of a company's goods or services.

  • Recognize the strategic significance of operations within the value chain.
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MA
MOHAMMAD ALFARHANJun 07, 2024
Final Answer :
A
Explanation :
Since operations is an area of low importance to the firm, it would not make sense for the firm to focus additional effort and resources on improving it. Instead, the firm can prioritize other areas of the value chain where it can improve its performance and add more value. Therefore, the best recommendation for the firm is to not focus additional effort on operations, as mentioned in option A.