CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment
A Pune engineering company has a strong brand, but its newly launched export unit is struggling with poor customs clearance, delayed shipments and weak after-sales support abroad. Using Porter's value chain, which of these activities are the primary activities most directly implicated?
Outbound logistics and service are implicated. Delayed shipments and customs clearance concern getting finished products to customers, which is outbound logistics, while weak after-sales support is the service activity. Procurement, technology, HR and infrastructure are support activities in Porter's value chain, not the primary activities involved.
- AOutbound logistics, and serviceCorrect
- BProcurement and technology development
- CHuman resource management and firm infrastructure
- DInbound logistics and operations only
Explanation
Primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Delayed shipments and customs clearance relate to outbound logistics, and weak after-sales support relates to service. Procurement, technology development, HR management and firm infrastructure are support activities, so they are wrong. Inbound logistics and operations do not match the symptoms.
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