Which is an example of a support activity in a firms value chain?

The support activities can therefore be divided into procurement, technology development (R&D), human resource management and firm infrastructure.

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Assessing the Support Activities in the Value Chain

Support Value Activities

Name: Assessing the Support Activities in the Value Chain
Brand: US Legal Forms
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Small Business - Sales and Marketing

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Multi-State

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US-03016BG

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Description

The value chain is a concept from business management. A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities.

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FAQ

Supporting activities are those actions taken by a nonprofit organization other than program services. Supporting activities typically include fundraising activities, management and general activities, and membership development activities.

Value chain analysis is based on the principle that organisations exist to create value for their customers.The organisation can more effectively evaluate its internal capabilities by identifying and examining each of these activities. Each value adding activity is considered to be a source of competitive advantage.

The primary activities of the value chain include inbound logistics, operation outbound logistics, marketing and sales, and service. Secondary activities or the support activities include firm infrastructure, human resources management, and procurement.

Value Chain Analysis is a three-step process: Activity Analysis: First, you identify the activities you undertake to deliver your product or service. Value Analysis: Second, for each activity, you think through what you would do to add the greatest value for your customer.

Step 1: Identify all value chain activities. Step 2: Calculate each value chain activity's cost. Step 3: Look at what your customers perceive as value. Step 4: Look at your competitors' value chains. Step 5: Decide on a competitive advantage.

Porter's value chain involves five primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities are illustrated in a vertical column over all of the primary activities. These are procurement, human resources, technology development, and firm infrastructure.

The support activities can therefore be divided into procurement, technology development (R&D), human resource management and firm infrastructure.

Support Value Activities

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