CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment
A firm finds that its customer-complaint handling, installation support and spare-parts supply are weaker than competitors', though its manufacturing is strong. Under Porter's value chain, which primary activity should it strengthen?
The firm should strengthen the service activity. Service includes installation, repairs, spare parts and complaint handling after sale, which maintain product value. Operations relates to production, which is already strong, and outbound logistics concerns distribution of finished goods to buyers.
- AServiceCorrect
- BOperations
- CFirm infrastructure
- DOutbound logistics
Explanation
Service covers activities that maintain or enhance product value after sale, such as installation, repair, spare parts and handling complaints. Operations is manufacturing, which is already strong. Firm infrastructure is a support activity and outbound logistics is about delivery of goods.
Did you get it right without looking?
One question tells you little. A timed set on Analyzing the External and Internal Environment shows your real accuracy, how long you take and where you lose marks.
More Analyzing the External and Internal Environment questions
- Three rivals in an industry have market shares of 40%, 30% and 20%, and the remaining 10% is held by small firms. Bharat Tools holds 20%. It…
- Which of the following is a recognised limitation of SWOT analysis?
- A packaged-foods company in Pune wants to study how changes in interest rates, demographic trends, environmental regulations and new technol…
- Which statement best describes the 'margin' in Porter's value chain model?
- Which analysis of internal environment breaks a firm's operations into primary and support activities to identify where it creates competiti…
- Himalaya Textiles, an Indian firm, buys raw cotton from several suppliers. Its management studies how receiving, storing and issuing cotton …