Briefly describe the concepts of value, margin, and value chain as defined by Porter
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. That generic chain consists of five primary activities and four support activities.
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As a company gains more experience with reuse, the firm gains more benefits. However, the firm also has to take into account:
A) that cost will grow as well. B) that there will be a need for less staff. C) that the defect rate will increase. D) that the software may need to be completely rewritten. E) its business processes.
Factors to consider when selecting a ________ include conformance to quality standards, extension of trade credit, and timely delivery
A) Supplier B) Sales representative C) Customer D) Banker E) Lawyer