Question

1. Using value chain analysis, which primary and secondary activities would you consider to be most and least valuable for a company like Facebook?
2. What is meant by the term "best practices"? Why does it matter whether a company utilizes best practices in performing the activities comprising its value chain

3. Using the financial ratios provided in Table 4.1 and the financial statement information presented on page 117-119 for Urban Outfitters, Inc, calculate the following ratios for Urban Outfitters for 2017:

   a. Gross profit margin
   b. Operating profit margin
   c. Return on shareholders’ equity
   i. Inventory turnover ratio
   
   

Answer 1

Question 1:

Answer: The primary activities include marketing, production of applications, contents for users, audience research and provide options for customer value requirements. The secondary activities include procurement involving inviting users, building a creative environment for the users.

Question 2:

Answer: Best practices can be defined as the most suitable and vital procedures and processes that are prescribed as well as accepted.

It matters because best practices ensure that that the primary and the secondary activities create value for the company and it helps companies to gain a competitive advantage over the other market competitors.

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