(a) If you were thinking about starting a new business making and selling earrings,what categories of cost would you consider (from the value chain) when making the decision about whether to go ahead?.

(b )If you were an existing earring manufacturer and you received a once only 'special order',what categories of cost would you consider (from the value chain) when deciding whether to accept or reject the order?

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Value chain Upstream Downstream- functions Costs in Research Manufacturing Customer Value of the value and Design > Supply or Marketing Distribution service products chain development production Product External financial reports costs for: Short-term profitability analysis / pricing / make or buy Longer term (strategic) profitability analysis / pricing / product mix