Final answer:
A value chain is a sequence of activities that a company goes through to create and deliver a product or service. The key functions of a company's value chain include inbound logistics, operations, outbound logistics, marketing and sales, and service.
Step-by-step explanation:
A value chain refers to the sequence of activities that a company goes through to create and deliver a product or service to its customers. It includes all the activities from the procurement of raw materials to the production, distribution, and marketing of the final product. The key functions of a company's value chain typically include:
- Inbound logistics: This involves receiving, storing, and distributing inputs such as raw materials or components.
- Operations: This includes all the activities required to transform the inputs into the final product.
- Outbound logistics: This involves the distribution and delivery of the finished product to customers.
- Marketing and sales: This includes activities to promote and sell the product, such as advertising and customer relationship management.
- Service: This involves providing customer support, maintenance, and after-sales services.