What's the Value in the Value Chain? Functional managers use functional-level strategies to achieve superior efficiency, quality, innovation, and responsiveness to customers in order to build competitive advantage. Managers apply these strategies at various points along a company's value chain, the series or sequences of activities necessary to transform inputs into the finished goods or services that customers value and want to buy. Each activity along the chain adds value to the product or service if it lowers costs or produces differentiated qualities that increase the price a company can charge for it. An effective manager understands the essential functions of the value chain. In this exercise, you will place the stages of the value chain in their proper order and also specify in which part of the value chain specific activities take place. Instructions: Match the situation to the stage of the value chain it best represents. 1 Marketing function 4 6 Production function 3 Sales function Customer service function Materials management function 2 5 Product development function Match each of the options above to the items below. Barry is trying to solve an overheating problem in the prototype of an improved engine. v Zita is in negotiations to have the company's products prominently displayed in a new movie. Aaron schedules trucks to meet the Malaysian rubber shipments at the docks and take them to the plant. Bree mixes drinks in the neighborhood bar and grill. v Darius visited four physicians today to discuss the firm's new allergy medication and convince them to prescribe it. Abby works in a call center helping customers who have questions about how to install their new home theater systems