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 questions

Domain Blockchain Consensus

Answer options
A: Firm infrastructure, service, marketing and sales.
B: Inbound logistics, outbound logistics, operations.
C: Procurement, technology development, human resource management. Correct answer
D: Service, procurement, firm infrastructure.
Correct Answer:
C. Procurement, technology development, human resource management.
Explanation

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.

Why Incorrect

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.

References

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).

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