ACCA Applied Knowledge · Business and Technology · Competitive factors
In Porter's value chain, which of the following is classified as a primary activity?
Outbound logistics is a primary activity. Porter's five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Procurement and human resource management are support activities, because they assist every primary activity rather than directly creating and delivering the product.
- AProcurement of raw materials and components
- BOutbound logisticsCorrect
- CHuman resource management
Explanation
Porter's primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Procurement and human resource management are support activities because they underpin all the primary activities. Procurement is a common trap, since it relates to inputs, but it is classed as support.
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