CBAF-001 practice question 19 of 25
Which of the following lists includes only activities that are defined as support activities in the value chain?
Full set: 160 questionsDomain Blockchain Consensus
Michael Porter's Value Chain model categorizes a firm's activities into two types: primary and support. Support activities provide the infrastructure that allows the primary activities to occur. The four generic support activities are Procurement, Technology Development, Human Resource Management, and Firm Infrastructure. Option C is the only choice that lists activities belonging exclusively to this support category. These activities, such as purchasing inputs, managing personnel, and developing new technologies, underpin the entire value chain but are not directly involved in the physical creation, sale, or transfer of the product to the buyer.
A. This option incorrectly includes "service" and "marketing and sales," which are primary activities directly related to the customer.
B. This list consists entirely of primary activities (inbound logistics, operations, outbound logistics) that are directly involved in creating and delivering the product.
D. This option incorrectly includes "service," which is a primary activity focused on enhancing or maintaining the product's value after sale.
1. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press. In Chapter 2, "The Value Chain and Competitive Advantage," Porter defines the support activities as procurement, technology development, human resource management, and firm infrastructure (pp. 40-45).
2. MIT OpenCourseWare. (2006). 15.902 Strategic Management I, Fall 2006. Massachusetts Institute of Technology. Session 5 Lecture Notes, "Industry Analysis II: The Value Chain," explicitly diagrams and lists Procurement, Technology Development, Human Resource Management, and Firm Infrastructure as the four support activities. (Available at: ocw.mit.edu).
Keep practicing
Take the free CBAF-001 practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other CBAF-001 practice questions
- Question 1Which category of activities should be identified first when developing a 'Business Activ…
- Question 2The Internal Rate of Return has been calculated for an option in a Business Case. Which O…
- Question 3Which of the following describes a 'rich picture'?
- Question 4Which of the following may be used to document the outcomes of a workshop?
- Question 5During which stage of the Business Analysis Process Model would a gap analysis be carried…
- Question 6An analyst investigating a sales system wishes to ask questions about how a customer orde…
