Final answer:
The connectivity between benchmarking and value chain analysis is intrinsic because value chain analysis identifies potential areas for improvement and benchmarks provide improvement targets. Benchmarking compares a company's performance to the industry's best, while value chain analysis examines where a company adds value and incurs costs.
Step-by-step explanation:
The connectivity between benchmarking and value chain analysis is D. Intrinsic. Benchmarking is the process whereby a company compares its processes and performance metrics to industry bests or best practices from other companies. Value chain analysis, on the other hand, is the method of examining the activities that a business performs and identifying where value is added to products or services and the costs associated with doing so. These two concepts are intrinsically connected because value chain analysis can inform benchmarking processes by identifying potential areas for improvement and benchmarks can provide the targets for those improvements.
For example, through value chain analysis, a company might find that its production process is a major source of value but also a significant cost. Benchmarking against industry leaders may reveal that competitor companies have a more efficient manufacturing process. As a result, the firm might adopt new technologies or methods to improve its own processes, aligning with those benchmarks.