CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment
Anand Pharma lists its activities: inbound logistics, operations, outbound logistics, marketing and sales, service, procurement, technology development, human resource management and firm infrastructure. In Porter's value chain, which of these is classified as a support activity?
Technology development is the support activity. In Porter's value chain, the primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service, while procurement, technology development, human resource management and firm infrastructure are support activities that assist all primary activities.
- AOutbound logistics
- BMarketing and sales
- CTechnology developmentCorrect
- DService
Explanation
Porter's primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities are procurement, technology development, human resource management and firm infrastructure. Hence technology development is the support activity; the other options are primary activities.
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