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What is NOT one of the primary activities in Porter's Value Chain Analysis?

  1. Outbound logistics

  2. Inbound Logistics

  3. Procurement

  4. Service activities

The correct answer is: Procurement

Procurement is often viewed as a support activity rather than a primary activity in Porter's Value Chain Analysis. The primary activities are directly involved in the creation and delivery of products or services and include inbound logistics, operations, outbound logistics, marketing and sales, and service activities. Inbound logistics involves the processes related to receiving, storing, and disseminating inputs, while outbound logistics focuses on the processes required to distribute the finished product. Service activities pertain to the support provided after a product has been purchased, such as repair and maintenance. Procurement, while essential for acquiring the necessary materials and resources, is categorized as a support activity because it contributes to the efficiency and effectiveness of the primary activities rather than being one of the core processes that directly add value to the product or service itself. Understanding this distinction is crucial in applying Porter’s Value Chain framework effectively.