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ACCA Strategic Professional · Strategic Business Leader · Concepts of strategy

Norvik Hotels wants to understand which activities create customer value and margin. Management maps inbound logistics, operations, marketing, service and support activities, then examines how technology and procurement underpin them. Which analytical tool is being applied?

Norvik is using Porter's value chain. It breaks the business into primary activities such as operations, marketing and service, and support activities such as procurement and technology, to identify where value and margin are created and where cost or differentiation advantage can arise.

  1. APorter's value chainCorrect
  2. BAnsoff matrix
  3. CBoston Consulting Group matrix
  4. DLewin's force field analysis

Explanation

Porter's value chain splits a business into primary activities (inbound logistics, operations, outbound logistics, marketing and sales, service) and support activities (such as procurement and technology) to see where value and cost arise. The other tools address growth options, portfolio balance and change forces.

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