Which of the following best describes Porter's Primary Activities?

Prepare for the CIMA Managing Finance in a Digital World (E1) Exam. Use multiple choice questions and study aids to enhance your knowledge. Get exam-ready with our insights and tips!

Multiple Choice

Which of the following best describes Porter's Primary Activities?

Explanation:
Porter's primary activities are the steps in the value chain that add direct value to the product as it’s made and delivered to customers. These activities are directly involved in turning inputs into a final product and getting it to market and after-sales services. They typically include operations (production), inbound and outbound logistics (receiving inputs and delivering the finished product), marketing and sales, and service. The statement that describes these activities as directly related to production, sales, marketing, delivery, and services aligns with that core idea, so it’s the best description. The other descriptions refer to support activities, which provide the resources and infrastructure that enable the primary activities to happen—things like human resource management, procurement, technology development, and firm infrastructure. They don’t themselves add direct value to the product in the way the primary activities do.

Porter's primary activities are the steps in the value chain that add direct value to the product as it’s made and delivered to customers. These activities are directly involved in turning inputs into a final product and getting it to market and after-sales services. They typically include operations (production), inbound and outbound logistics (receiving inputs and delivering the finished product), marketing and sales, and service. The statement that describes these activities as directly related to production, sales, marketing, delivery, and services aligns with that core idea, so it’s the best description.

The other descriptions refer to support activities, which provide the resources and infrastructure that enable the primary activities to happen—things like human resource management, procurement, technology development, and firm infrastructure. They don’t themselves add direct value to the product in the way the primary activities do.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy