Which of the following is NOT a primary activity in Porter's value chain?

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 is NOT a primary activity in Porter's value chain?

Explanation:
Porter's value chain separates activities into primary and support ones. Primary activities are those that directly add value as the product moves from inputs to the customer: inbound logistics handles getting and storing inputs, operations transform those inputs, outbound logistics distributes the finished product, marketing and sales create demand and facilitate purchases, and service provides after-sales support. Procurement, the process of obtaining the inputs and resources needed, is a support activity that enables the primary activities but does not itself directly add value through the product’s flow. So, procurement is the NOT a primary activity, while inbound logistics, marketing and sales, and service are.

Porter's value chain separates activities into primary and support ones. Primary activities are those that directly add value as the product moves from inputs to the customer: inbound logistics handles getting and storing inputs, operations transform those inputs, outbound logistics distributes the finished product, marketing and sales create demand and facilitate purchases, and service provides after-sales support. Procurement, the process of obtaining the inputs and resources needed, is a support activity that enables the primary activities but does not itself directly add value through the product’s flow. So, procurement is the NOT a primary activity, while inbound logistics, marketing and sales, and service are.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy