A framework, proposed by Michael Porter, that divides a company's activities into primary activities (inbound logistics, operations, outbound logistics, marketing and sales, service) and support activities, to analyze which activities create value and where costs arise.
Japanese name: バリューチェーン
Value chain appears in 1 practice question across 1 topic, including Business Strategy and Accounting Basics.
Answer: B. Operations (manufacturing)
The value chain divides a company's activities into primary activities, which follow the flow until products or services reach customers, and support activities, which support them, and analyzes in which activities value is created and where costs arise. The five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service; the four support activities are firm infrastructure, human resource management, technology development and procurement. Technology development is not just the work of the R&D department but refers to technology efforts that support all activities, so it is included among the support activities.
The value chain divides a company's activities into primary activities, which follow the flow until products or services reach customers, and support activities, which support them, and analyzes in which activities value is created and where costs arise.
In Porter's value chain, which is classified as a primary a…As an Amazon Associate I earn from qualifying purchases.
ABC analysis Break-even point Contribution margin Depreciation Five forces analysis Fixed cost Income statement (P/L) Net present value (NPV) Patent Product life cycle