CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment
Kaveri Auto Components analyses its activities and finds that inbound logistics, operations, outbound logistics, marketing and sales, and service are the activities that directly create and deliver its product, while procurement, technology development, HR management and firm infrastructure support them. In Porter's value chain, which activity group is correctly matched with its type?
Outbound logistics is a primary activity in Porter's value chain. The primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service, whereas procurement, technology development, HR management and firm infrastructure are support activities that assist them.
- ATechnology development is a primary activity
- BOperations is a support activity
- COutbound logistics is a primary activityCorrect
- DFirm infrastructure is a primary activity
Explanation
Porter's primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Procurement, technology development, HR management and firm infrastructure are support activities. Hence only outbound logistics as primary is correct.
Did you get it right without looking?
One question tells you little. A timed set on Strategic Analysis: Internal Environment shows your real accuracy, how long you take and where you lose marks.
More Strategic Analysis: Internal Environment questions
- Dhruv Pharma has strong R&D, but its inbound logistics are inefficient, leading to stock-outs of raw materials. Its procurement team negotia…
- Sagar Pharma finds that its R&D spending per product is much lower than that of rivals, yet its drug launches are on schedule. Managers attr…
- Tara Retail, a Pune chain, compares its inventory turnover, store design and loyalty programme with those of the best performer in a differe…
- A Pune-based software firm, 'Nirmaan Tech', assesses its internal environment. It finds that its dedicated data centre, trained workforce an…
- Kaveri Pharma Ltd finds that its ability to combine R&D, regulatory know-how and manufacturing skills across divisions has let it launch new…
- Kaveri Textiles studies its activities from inbound logistics through operations, outbound logistics, marketing and sales, and service. It a…