Skip to content

IAI Actuarial Core Principles · Business Management · Strategy, competitive advantage, strategic decision process and PEST analysis

Which activity is a primary activity, rather than a support activity, in Porter's value chain for an Indian life insurer?

Sales and marketing of policies is the primary activity. Porter's primary activities cover inbound logistics, operations, outbound logistics, marketing and sales, and service, while human resources, technology, procurement and firm infrastructure are support activities that assist them.

  1. AHuman resource management
  2. BTechnology development
  3. CProcurement of office services
  4. DFirm infrastructure such as finance and legal
  5. Sales and marketing of policies to customersCorrect

Explanation

Porter's primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Human resources, technology development, procurement and firm infrastructure are support activities. Sales and marketing of policies is therefore the primary activity.

Did you get it right without looking?

One question tells you little. A timed set on Strategy, competitive advantage, strategic decision process and PEST analysis shows your real accuracy, how long you take and where you lose marks.

Practise Strategy, competitive advantage, strategic decision process and PEST analysisFree diagnostic mock

More Strategy, competitive advantage, strategic decision process and PEST analysis questions