Which managerial framework breaks down organizational activities into Primary and Support activities to identify cost-saving and differentiation opportunities?
ABCG Matrix
BValue Chain Analysis
CMcKinsey 7S
DAnsoff Matrix
Explanation
• Developed by Michael Porter, Value Chain Analysis divides an organization’s internal processes into Primary Activities (Inbound Logistics, Operations, Outbound Logistics, Marketing, Service) and Support Activities (Infrastructure, HR, Tech, Procurement).
• Examining each link helps managers identify cost reduction opportunities and sources of competitive differentiation.
• Value Chain Analysis focuses on internal value creation across sequential business functions.
Exam Relevance
- Topic: Strategic Management
- Subtopic: Value Chain Analysis

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