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ACCA Strategic Professional · Strategic Business Leader · The internal resources, capabilities and competences of an organisation

Marlow Cycles designs, assembles and sells premium bicycles. Its managers list activities as inbound logistics, operations, outbound logistics, marketing and sales, and service, then separately list procurement, technology development, human resource management and firm infrastructure. Under Porter's value chain, which activities in this list are classed as support activities?

Procurement, technology development, human resource management and firm infrastructure are Porter's support activities. They assist all primary activities rather than directly creating and delivering the product, which is why the other groupings, made up of primary activities, are wrong.

  1. AInbound logistics, operations and outbound logistics
  2. BProcurement, technology development, human resource management and firm infrastructureCorrect
  3. CMarketing and sales together with service
  4. DOperations, technology development and firm infrastructure

Explanation

Porter's primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. The support activities are procurement, technology development, human resource management and firm infrastructure. Option A lists only primary activities, and option C also lists primary ones.

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