According to Gareth Jones, value creation has three stages: Input, conversion, and output. Each stage of the value creation process is influenced by the organizational environment. As also understood from this information given the statement “Each stage of the value creation process is only influenced by the internal organizational factors.” is not correct related to value creation process. On the contrary, each stage of the value creation process is influenced by the organizational environment. Because of the fact that the other statements are correct, the correct answer is “E”. Inputs may be abstract and concrete things such as end products semi-products money, capital, machine and equipment, human resource and knowledge, which are acquired from organizational environments and used as resources during the value-creation process. This value-creation process will also be influenced by how an organization chooses and acquires the inputs.  Quality, amount and compliance of inputs, used in the transformation process, must be paid attention to because inputs as the first stage of value-creation process influence the created value. Procedures followed by organizations to transform inputs to outputs are called transformation process. The last element of the value-creation process is output. The products or services offered by the organization following the transformation process make up the output, which may also be input for another organization. Just as the organization offering output acquires the input from an organization, its output may also be used as an input by another one. In this sense, complex value-creation processes of organizations are influenced by their environments.