What comprises the secondary activities of a firm?

What comprises the secondary activities of a firm?

• A. Inbound logistics, technology, and service
• B. Inbound logistics, organization infrastructure, and sales
• C. Organization infrastructure, human resources, and technology
• D. Organization infrastructure, human resources, and procurement

Answer: (D)

The correct answer highlights the secondary activities within a firm's value chain. In this framework, secondary activities support the primary activities that contribute directly to the production and delivery of a product or service. The elements listed—organization infrastructure, human resources, and procurement—are fundamental to enhancing overall efficiency and effectiveness in a business. Organization infrastructure encompasses the company's systems, structure, and management that facilitate operations as well as coherence between various functions. This is essential for strategic planning and maintaining competitive advantage. Human resources are critical as they manage the employee lifecycle, including hiring, development, and retention. Skilled personnel are necessary for achieving high-quality product outputs and ensuring customer satisfaction. Procurement involves acquiring the necessary goods and services that support the firm's operations. This can include sourcing raw materials and negotiating supplier contracts, which directly impacts the cost structure of the products or services a company provides. Together, these three components create a supportive environment that enables the primary activities to function more effectively, ultimately leading to better performance and competitive positioning in the market.

The correct answer highlights the secondary activities within a firm's value chain. In this framework, secondary activities support the primary activities that contribute directly to the production and delivery of a product or service.

The elements listed—organization infrastructure, human resources, and procurement—are fundamental to enhancing overall efficiency and effectiveness in a business. Organization infrastructure encompasses the company's systems, structure, and management that facilitate operations as well as coherence between various functions. This is essential for strategic planning and maintaining competitive advantage.

Human resources are critical as they manage the employee lifecycle, including hiring, development, and retention. Skilled personnel are necessary for achieving high-quality product outputs and ensuring customer satisfaction.

Procurement involves acquiring the necessary goods and services that support the firm's operations. This can include sourcing raw materials and negotiating supplier contracts, which directly impacts the cost structure of the products or services a company provides.

Together, these three components create a supportive environment that enables the primary activities to function more effectively, ultimately leading to better performance and competitive positioning in the market.