Which is NOT a primary activity of the value chain?

Which is NOT a primary activity of the value chain?

• A. Inbound logistics
• B. Operations
• C. Marketing and Sales
• D. Procurement

Answer: (D)

This question tests understanding of Porter’s value chain distinction between primary and support activities. Primary activities are the actions that directly create and deliver value to the customer: inbound logistics handle receiving and storing inputs, operations transform those inputs into the final product, outbound logistics distribute the product to customers, marketing and sales generate demand and facilitate purchases, and service provides post-sale support to maintain or enhance value. Procurement is a support activity. It covers obtaining inputs and resources from external sources, such as negotiating contracts and purchasing materials. While procurement enables the primary activities by ensuring the right inputs are available at the right time and cost, it does not itself directly move goods, transform them, deliver them to customers, or drive the sale. Therefore, it is not a primary activity in the value chain.

This question tests understanding of Porter’s value chain distinction between primary and support activities. Primary activities are the actions that directly create and deliver value to the customer: inbound logistics handle receiving and storing inputs, operations transform those inputs into the final product, outbound logistics distribute the product to customers, marketing and sales generate demand and facilitate purchases, and service provides post-sale support to maintain or enhance value.

Procurement is a support activity. It covers obtaining inputs and resources from external sources, such as negotiating contracts and purchasing materials. While procurement enables the primary activities by ensuring the right inputs are available at the right time and cost, it does not itself directly move goods, transform them, deliver them to customers, or drive the sale. Therefore, it is not a primary activity in the value chain.