Question

The support activities of a firm include:

A) inbound logistics, technology, outbound logistics, sales and marketing, and service.
B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement.
C) organization infrastructure, human resources, sales and marketing, and technology.
D) organization infrastructure, human resources, technology, and procurement.

Answer 1

The correct answer is letter "D": organization infrastructure, human resources, technology, and procurement.

Step-by-step explanation:

American Harvard Business Professor Michael Porter (born in 1947) proposed that firms should focus on maximizing all the activities in their value chain to achieve a competitive advantage. Porter classified those activities in primary and support activities. Support activities include a firm's infrastructure, human resource management, technology development, and procurement.

Answer 2

Option D is correct because according to Porter's Value chain Model, there are five primary activities of the organisation and four support activities that an organization must work on for a better future of the company.

The five primary activities are as under:

1. Inbound logistics
2. Operations
3. Outbound logistics
4. Sales and Marketing
5. Services

So the options in which these primary activities are present are wrong. First three options contains elements of primary activities so these are incorrect.

Furthermore, the four supporting activities of the company are as under:

1. Procurement
2. Technology Development
3. Human Resources
4. Organizaiton Infrastructure