Which of the following value chain activities is unlikely to be a primary buildi

Question

Which of the following value chain activities is unlikely to be a primary building block in a company's organizational structure? Multiple Choice The activities for a ski apparel manufacturer are styling and design and marketing and advertising. In specialty chemicals, the critical activities are R&D;, product innovation, and getting new products on the market quickly Critical value chain activities in automobile manufacturing include raw materials procurement, offshore sourcing, and customer service. In apparel retailing, critical value chain activities include apparel design, supply chain activities, marketing and advertising, and in-store customer service. In discount stock brokerage, the strategy-critical activities are fast access to information, accurate order execution, and good customer service.

Explanation / Answer

Ans.: e. in discount stock brokerage, the strategy-critical activities are fast access to information, accurate order execution and good customer service.

In option a, styling, design, marketing and advertising become primary building blocks in the organizational structure as they are different functions that are included in the structure. Similarly, in option b, R&D becomes a building block in the organizational structure. In option c, procurement, sourcing, and customer service, and in option d, apparel design, supply chain, marketing and advertising and customer service become building blocks of the organizational structure. In option e, the mentioned critical activities to the strategy are fast access to information, accurate order execution and good service, which are the desired attributes for the company’s strategy, but they do not become building blocks for the organizational structure as they specifically do not identify any function.

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