Question: Which Of The Following Is A Primary Activity In The Value Chain?

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 is a value chain example?

Value Chain Analysis Example Value chain analysis allows businesses to examine their activities and find competitive opportunities. For example, McDonald’s mission is to provide customers with low-priced food items. … Below is an example of a value chain analysis for McDonald’s and it’s cost leadership strategy.

What is primary activity give examples?

Primary activity includes those occupations which are closely related to man’s natural environment. Gathering, hunting, fishing, lumbering, animal rearing, farming and mining are some of important examples of primary activities.

What is the value chain framework?

The Value Chain framework of Michael Porter is a model that helps to analyze specific activities through which firms can create value and competitive advantage. Inbound Logistics. Includes receiving, storing, inventory control, transportation scheduling. Operations.

Is a support activity?

Supporting activities mean everything on the side, that helps run your business but actually isn”t related to your product. Yes you can make your supply chain network more cost effective, and you can work on redesigning your logistics operations to be faster.

Which of the following is a primary activity that value chains include?

Primary activities in the value chain include inbound and outbound logistics, operations, marketing and sales, and services. Let’s start with inbound logistics.

What are the types of value chain?

Types of Value Chain Governance. … Market. … Modular. … Relational. … Captive. … Hierarchial. … Footnotes.

Which of the following types of system would you use to manage relationships with your customers?

Chapter 2QuestionAnswerTo manage relationships with your customers, you would use a __________ system.CRMWhat is the most important function of an enterprise application?Enabling business functions and departments to share information65 more rows

What are secondary activities?

A secondary activities is an activity performed by a unit in addition to its principal activity. The result of a secondary activity is called secondary production.

What is Starbucks value chain?

Starbucks aims at building customer loyalty through its in-store customer service. A signature retail objective of Starbucks has always been to provide customers with a unique Starbucks Experience. Service training is a key component of the value chain that helps to make its offerings unique.

What is the difference between primary activities 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 primary economic activities?

The Primary sector of the economy includes any industry involved in the extraction and production of raw materials, such as farming, logging, hunting, fishing, and mining. The primary sector tends to make up a larger portion of the economy in developing countries than it does in developed countries.

Are Value Chains a useful tool for strategy?

Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage.

What is an example of a value chain activity?

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.

Which is not a primary activity in value chain analysis?

Technology development activity does not comes under the primary activities of value Chain analysis. Value chain analysis is a strategy tool used to analyze internal firm activities.

What is the best definition of value chain?

Value chain refers to the functional activities of a business that add value to its customers. A business must use its value chain activities to create value, and then capture that value. … The value created by this chain should exceed the sum of the values added by each individual activity.

What is a value chain model explain its role and importance?

A value chain is a business model that describes the full range of activities needed to create a product or service. … The purpose of a value-chain analysis is to increase production efficiency so that a company can deliver maximum value for the least possible cost.

Which of the following is not an example of a primary activity?

Answer: Banking is not a primary activity. Any economic activity that deals with the “extraction and refinement” of “natural resources” is called primary activity.

How do you use Porter’s value chain?

Using Porter’s Value ChainStep 1 – Identify subactivities for each primary activity. For each primary activity, determine which specific subactivities create value. … Step 2 – Identify subactivities for each support activity. … Step 3 – Identify links.

Which of the following is an example of a support activity in a value chain?

Sales and service would be examples of supporting activities in Porter’s value chain model. Accounting functions like accounts receivables would be an example of a supporting activity in Porter’s value chain model.