Which of the following best describes a 'value driver'?

A 'value driver' refers to a factor that significantly contributes to the overall performance and success of a business. This could include various elements such as customer satisfaction, innovation, operational efficiency, or market expansion, all of which ultimately enhance a company's competitive advantage and profitability. Understanding value drivers helps businesses focus their strategies on what will truly impact their bottom line positively.

In contrast, the other options do not capture the essence of a value driver. For instance, an area that increases costs negatively impacts performance rather than enhancing it. Technology that reduces overhead might be beneficial but is more of a cost control measure rather than a value driver in itself. Internal policies can guide operations and behavior, but they do not necessarily enhance business performance unless they directly contribute to achieving key business objectives. Thus, the emphasis on enhancing business performance makes the second option the most accurate description of a value driver.