Question

Which of the following is NOT one of the ways that a company can achieve cost-efficient management of its value chain activities?

A. Striving to ensure a corporate diversity policy is introduced with effective controls
B. Using the company's strong bargaining power vis-à-vis suppliers or others in the value chain
C. Being alert to the cost advantages of outsourcing or vertical integration
D. Striving to capture all available economies of scale
E. Motivating employees through incentives and company culture

Answer 1

The company cannot achieve cost-efficient management of its value chain activities by striving to ensure a corporate diversity policy with effective controls.

Step-by-step explanation:

The correct answer is A. Striving to ensure a corporate diversity policy is introduced with effective controls. This option does not represent one of the ways that a company can achieve cost-efficient management of its value chain activities.

Cost-efficient management of value chain activities involves strategies such as:

• Using the company's strong bargaining power vis-à-vis suppliers or others in the value chain: This allows the company to negotiate better prices and terms, reducing costs.
• Being alert to the cost advantages of outsourcing or vertical integration: Outsourcing can help the company benefit from specialized expertise and lower costs, while vertical integration can help achieve greater control and avoid dependency on external suppliers.
• Striving to capture all available economies of scale: This involves increasing production volume to reduce per unit costs.
• Motivating employees through incentives and company culture: By providing incentives and fostering a positive company culture, employees are motivated to be more efficient and productive.