Question

Select the correct answer from each drop-down menu. What classifications are possible for a company’s activities based on Porter’s value chain model? Based on Porter’s value chain model, a company’s activities can be classified as , which helps companies gain a competitive advantage, or , which acts as a barrier to success.

Answer 1

Based on Porter's value chain model,a company's activities can be classified as which helps companies  gain a competitive advantage.

Answer: correct answer is (a)

Explanation:

Porter value chain model really help a company in gaining competitive advantage by adopting new methods and technologies in performing the task.It enables an organisation to find out those activities which are very important and those activities can be given proper attention.

Porter value chain is actually dividing the activities on the basis of priority.Focus is lead on those tasks which are very important and efforts are made to improve them as much as  possible.

Porter value chain has divided the activities into two broad categories that is primary activities and secondary activities.

Primary activities are those which are of utmost importance like receiving,warehousing and inventory control of raw materials,converting raw material into finished goods,distribution of finished goods,marketing and sales.

Secondary activities include procurement,infrastructure,technological development.These activities support the primary activities.