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Review the information in Illustration Capsule 4.1 (PDF KP MacLane) concerning the value chain average costs of producing and selling an upscale polo shirt and compare this with the representative value chain depicted in Figure 4.3 (PDF Company Value Chain). Then answer the following questions: 1. Which of the company’s primary value chain activities account for the largest percentage of its operating expenses? 2. What support activities described in Figure 4.3 would be necessary at KP MacLane? 3. What value chain activities might be important in securing or maintaining a competitive advantage or a producer of upscale, branded shirts like KP MacLane?

Operation Management, Management Studies

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