The value chain provides a structure to capture the linkage of organizational activities that create value for the customer and profit for the firm.

Question

Quizplus · Accepted Answer

The statement is true. The value chain model was introduced by Michael Porter in his book "Competitive Advantage: Creating and Sustaining Superior Performance". According to the model, organizational activities can be divided into primary activities (such as inbound logistics, operations, outbound logistics, marketing and sales, and service) and support activities (such as procurement, technology development, human resource management, and infrastructure) that all contribute to the creation of value for the customer and profit for the firm. The value chain is a useful tool for analyzing and improving business processes and identifying areas where cost savings and competitive advantages can be gained.

The Value Chain Provides a Structure to Capture the Linkage