Value Chain

Question 1

What is the value chain?

Answer 1

The sequence of business activities by which value is added to the products or services by an entity

Question 2

What are the primary activities in the value chain?

Answer 2

1) Inbound Logistics
2) Operations
3) Outbound Logistics
4) Marketing and Sales
5) Service

Question 3

What are the support activities in the value chain?

Answer 3

1) Firm infrastructure
2) Human Resource Management
3) Technology Development
4) Procurement

Question 4

What can be gained from value chain analysis

Answer 4

Firms can identify areas of “value-add” and maximise these activities. They can identify weaknesses within the business that can be improved upon.