Review the information in Concepts & Connections 4.1 concerning Boll & Branch’s average costs of producing and selling a king-sized sheet set, and compare this with the representative value chain depicted in Figure 4.1. Then answer the following questions:

(a) Which of the company’s costs correspond to the primary value chain activities depicted in Figure 4.1?

(b) Which of the company’s costs correspond to the support activities described in Figure 4.1?

(c) What value chain activities might be important in securing or maintaining Boll &

Branch’s competitive advantage? Explain your answer.

Figure 4.1

Transcribed Image Text:

A Representative Company Value Chain Primary Activities and Costs Support Activities and Costs Supply Chain Manage- ment Operations Distribution Sales and Marketing Product R&D, Technology, and Systems Development Human Resources Management Service General Administration Profit Margin