Final answer:
When an essential activity in a company's value chain no longer adds value, it should be eliminated or modified to improve efficiency.
Step-by-step explanation:
When an essential activity in a company's value chain no longer adds value to the final product or service, it should be eliminated or modified to improve efficiency. This can be done by analyzing the steps in the value chain and identifying the non-value adding activity. Once identified, the company can either eliminate the activity completely or find ways to modify it to make it more efficient. For example, if a company's value chain includes a manual packaging process that is time-consuming and adds little value, the company could invest in automation technology to streamline the process.