Consulting Case Interview Practice Questions

Answer: e - COGS is not part of a value chain model. A simple value chain model consists of customer service, sales and marketing, product delivery, operations and procurement. COGS stands for Costs of Goods Sold and is an important point to consider when profits are decreasing because of rising expenses.

Key Takeaway: You should know at least one version of a value chain, so you have a bigger picture framework to analyze a company’s processes from raw materials to a happy customer.