In value chain analysis, which of the following lists correctly identifies the primary activities and identifiable support activities?

In value chain analysis, which of the following lists correctly identifies the primary activities and identifiable support activities?

• A. Primary: inbound logistics, operations, outbound logistics, marketing and sales, service. Support: firm infrastructure, human resources management, technology development, procurement.
• B. Primary: procurement, inbound logistics, operations; Support: marketing, sales, IT, administration.
• C. Primary: marketing and sales; Support: inbound logistics, operations, procurement, service.
• D. Primary: finance and accounting; Support: procurement, technology development, HR.

Answer: (A)

In value chain analysis, activities are split into primary and support groups. Primary activities are those that directly add value as the product or service is created and delivered: inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities enable and enhance those primary activities: firm infrastructure, human resources management, technology development, and procurement. The best match lists exactly those primary activities and those support activities, aligning with Porter’s value chain model. Procurement, IT, HR, and the general infrastructure are all classed as support, not as primary, and marketing and sales belong to the main flow of value creation rather than to support. The other options mix items into the wrong categories, so they don’t fit the standard structure.

In value chain analysis, activities are split into primary and support groups. Primary activities are those that directly add value as the product or service is created and delivered: inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities enable and enhance those primary activities: firm infrastructure, human resources management, technology development, and procurement.

The best match lists exactly those primary activities and those support activities, aligning with Porter’s value chain model. Procurement, IT, HR, and the general infrastructure are all classed as support, not as primary, and marketing and sales belong to the main flow of value creation rather than to support. The other options mix items into the wrong categories, so they don’t fit the standard structure.