Question

Which of the following statements is false?

A.Value chain activities need to be closely coordinated.
B.Primary value chain activities include marketing and sales.
C.An organization's value chain is the only component of the value system.
D.None of the statements are false

Answer 1

The false statement is that an organization's value chain is the only component of the value system. Value chains of suppliers, distributors, and customers also contribute to the overall value system.

Step-by-step explanation:

When evaluating which of the following statements is false regarding an organization's value chain, we can assess each statement individually:

• Value chain activities need to be closely coordinated. This statement is true since coordination across activities such as procurement, production, and delivery is crucial for creating customer value and operational efficiency.
• Primary value chain activities include marketing and sales. This statement is accurate as well, as marketing and sales are part of the five primary activities in Michael Porter's value chain model, alongside inbound logistics, operations, and service.
• An organization's value chain is the only component of the value system. This statement is false. The value system includes not only the organization's value chain but also the value chains of upstream suppliers and downstream channels and customers, all contributing to the final value delivered to the end-user.

Therefore, the false statement among the options provided is C. An organization's value chain is the only component of the value system.