During Which Step of Value Chain Analysis Will the Company

Multiple Choice

During which step of value chain analysis will the company discover whether or not it has a cost advantage, and why?

A) During the first step, when the value-chain activities are identified.
B) During the first step, when the cost driver(s) are identified.
C) During the second step, when the firm develops a competitive advantage by either reducing cost or adding value.
D) The entire purpose of value chain analysis is to determine if the company has a cost advantage; therefore, it occurs in all steps.
E) In the third step, when the company adopts and implements the balanced scorecard