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ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques

Marlow Components plc maps its activities using Porter's value chain. Which of the following is classified as a primary activity rather than a support activity?

Outbound logistics is a primary activity in Porter's value chain, alongside inbound logistics, operations, marketing and sales, and service. Procurement, human resource management and firm infrastructure are support activities because they underpin all the primary activities rather than directly creating and delivering the product.

  1. AProcurement of raw materials from suppliers
  2. BOutbound logistics delivering finished goods to customersCorrect
  3. CHuman resource management and staff training
  4. DFirm infrastructure including finance and legal functions

Explanation

Porter's primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Procurement, HRM, technology development and firm infrastructure are support activities. Procurement is a common trap because it concerns buying inputs, but it supports all primary activities.

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