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ACCA Strategic Professional · Strategic Business Leader · E-business: value chain

Zenara Foods sells packaged snacks through a website. It currently buys from suppliers by phone and fax, and each customer order is re-keyed into its warehouse system. The board wants to shift from a linear value chain view to a value network view. Which action best reflects a value network approach?

Integrating systems with suppliers, logistics partners and customers so information flows in real time best reflects a value network. Value is then created through the connected relationships among all parties rather than through a sequential, internally focused chain of activities.

  1. ACutting the number of staff in the procurement department
  2. BIntegrating its systems with suppliers, logistics partners and customers so information flows across all parties in real timeCorrect
  3. CIncreasing advertising spend on the website
  4. DMoving the warehouse closer to head office

Explanation

A value network views value as created through interconnected relationships among suppliers, partners and customers, enabled by shared information systems. Integrating systems across parties reflects this. The other options are internal efficiency or marketing measures that do not change the network structure.

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