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Explain the relationship between value and cost

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Reference no: EM13895059

1. Explain the relationship between value and cost according to the Porter model. When does it make sense to add cost to a business process?

2. Suppose you are told that the business process in Figure 3-13 has a negative margin. Explain what that means. Suppose the margin of some business process is a negative $1 million. If costs are reduced by $1.2 million, will the margin necessarily be posi- tive? Explain why or why not.

Reference no: EM13895059

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