The primary activities of the value chain include inbound logistics, operation outbound logistics, marketing and sales, and service . Secondary activities or the support activities include firm infrastructure, human resources management, and procurement.
Which of the following can be considered a primary activity in the value chain process group of answer choices?
In Porter’s value chains, Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, and Service are categorized as primary activities. Secondary activities include Procurement, Human Resource management, Technological Development and Infrastructure (Porter 1985, pp.
What are the primary and support activities in the value chain?
Porter’s value chain involves five primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service . Support activities are illustrated in a vertical column over all of the primary activities. These are procurement, human resources, technology development, and firm infrastructure.
What are the value chain activities?
The value chain framework is made up of five primary activities — inbound operations, operations, outbound logistics, marketing and sales, service — and four secondary activities — procurement and purchasing, human resource management, technological development and company infrastructure.
What is value chain process?
The term value chain refers to the various business activities and processes involved in creating a product or performing a service . A value chain can consist of multiple stages of a product or service’s lifecycle, including research and development, sales, and everything in between.
What are the 5 primary activities of a value chain?
The primary activities of Michael Porter’s value chain are inbound logistics, operations, outbound logistics, marketing and sales, and service . The goal of the five sets of activities is to create value that exceeds the cost of conducting that activity, therefore generating a higher profit.
What are the types of value chain?
- Market. Market governance involves transactions that are relatively simple, information on product specifications is easily transmitted, and producers can make products with minimal input from buyers.
- Modular. ...
- Relational. ...
- Captive. ...
- Hierarchy.
What is the meaning of primary activities?
Primary activities are directly dependent on environment as these refer to utilization of earth’s resources such as land,water,vegetation,building materials and minerals.It includes ,hunting and gathering,pastoral activities,fishing,forestry,agriculture,mining and quarrying.
What are supporting activities?
Supporting activities mean everything on the side, that helps run your business but actually isn”t related to your product. ... Primary activities are anything that you do specifically to a product to get it in the hands of customers.
What is value chain activities with examples?
The activities associated with this part of the value chain are providing service to enhance or maintain the value of the product after it has been sold and delivered. Examples: installation, repair, training, parts supply and product adjustment .
What is Porter’s value chain used for?
Porter’s Value Chain is a useful strategic management tool . It works by breaking an organization’s activities down into strategically relevant pieces, so that you can see a fuller picture of the cost drivers and sources of differentiation, and then make changes appropriately.
What are the value chain linkages?
Linkages are relationships between the way one value activity is performed and the cost or performance of another (e.g., purchasing high-quality, precut steel sheets can simplify manufacturing and reduce scrap).
Which of the following is the first step in managing the value chain?
Research and Development. The first step in value chain management is researching the products your customers want . Through careful market analysis, including the measurement of consumer trends, companies can anticipate what people want and have those products available.
What are the steps in value chain analysis?
Three main steps can be distinguished in value chain analysis: (1) Identify the main functions and types of firms in the value chain ; (2) Analyze structural connections; and (3) Analyze dynamics.
What is difference between value chain and supply chain?
To recap: the Supply chain is the process between producing and distributing the product , dealing with the suppliers and logistics of getting the product to market; the Value chain is a set of activities carried out by the company which maximises the competitive advantage.
What are the advantages of value chain analysis?
Reduction in cost by optimizing the value chain components or activities ; Improved flow of materials and products through accurate forecasting of sales as well as demands; Improvement in after-sales services and customer support through coordinated operations.
