Chapter 3.8, Problem 3.4ARQ

Explanation of Solution

Value:

The value in business process determines well-being and health of secure in longer run. It is the amount of money that a customer is ready to pay for the product, resources or service.

Margin:

It provides difference in seller cost to acquire product and selling price and it is expressed in percentage for net sales income. It is the difference between the cost of the activity and the value generated by an activity.

Value Chain:

Value chain is activities where it creates a value of customers. The value-creating activates are being practiced as network.

Reason for organizations to choose the differentiation strategy:

Organizations can pay the differentiation strategy across the industry or else it can focus its strategy on their particular segment.

The business to select the differentiation strategy, it would not necessarily structure situation about the least-cost activities...