Page 146 - BA1 Integrated Workbook STUDENT 2018

Subject E3: Strategic Management

5.3 YUF operates a chain of shops that sell specialty teas and coffees. YUF has
grown to dominate this small but profitable niche in this industry as it has been
able to negotiate supplies from a number of small tea and coffee growers
around the world.

Which ONE of the following options correctly identifies the activity within
YUF’s value chain that gives the company competitive advantage?

A Procurement

B Inbound logistics

C Service

D Operations

5.4 TTD is a large, online retailer. The company manufactures high quality clothing
and then sells it exclusively through its website. TTD has outsourced the
majority of its functions to third parties in order to increase its flexibility.

TTD initially outsourced the storage and handling of its raw materials and
finished goods to a professional warehousing company, who charges a flat
monthly fee for its services. Goods are delivered to customers by a national
courier company.

Following this, TTD outsourced its advertising campaigns to an advertising
agency – which allowed TTD to reduce the number of its administrative staff.

Finally, TTD has outsourced the handling of customer queries and complaints to
a company that operates a chain of call centres.

Which ONE of the following options correctly identifies an activity from
TTD’s value chain that has been kept in house?

A Outbound logistics

B Inbound logistics

C Operations

D Service

E Marketing and sales

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