During which step of value chain analysis will the company discover whether or not it has a cost advantage, and why?

Multiple Choice

• In the third step, when the company adopts and implements the balanced scorecard.

• During the first step, when the cost driver(s) are identified.

• During the second step, when the firm develops a competitive advantage by either reducing cost or adding value.

• During the first step, when the value-chain activities are identified.

• The entire purpose of value chain analysis is to determine if the company has a cost advantage; therefore, it occurs in all steps.