ExpertEasy1 markMultiple Choice
ACCA · Question 32 · Syllabus A: The business organisation and its external environment
Section A
In Michael Porter's Value Chain, into which category does 'Inbound Logistics' fall?
Section A
In Michael Porter's Value Chain, into which category does 'Inbound Logistics' fall?
Answer options:
A.
Primary activities
B.
Support activities
C.
Margin activities
How to approach this question
Recall the 5 primary activities: Inbound logistics, Operations, Outbound logistics, Marketing & Sales, Service.
Full Answer
A.Primary activities✓ Correct
Porter's Value Chain divides activities into Primary and Support. Primary activities are directly concerned with the creation or delivery of a product or service. Inbound logistics (receiving, storing, and disseminating inputs) is the first primary activity.
Common mistakes
Confusing Inbound Logistics with Procurement (which is a support activity).
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