Which statement about the value chain is accurate?

The value chain is a concept developed by Michael Porter to identify the various activities that an organization performs to deliver value to its customers. An accurate statement about the value chain is that it includes both primary and support activities.

Primary activities are directly involved in the production and delivery of a product or service, encompassing inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities, on the other hand, provide the necessary assistance to ensure the effective functioning of the primary activities. These include firm infrastructure, human resource management, technology development, and procurement. By understanding and analyzing both types of activities, businesses can pinpoint areas for improvement, cost efficiencies, and opportunities for differentiation, ultimately leading to enhanced competitive advantage.

In contrast, the other statements do not accurately depict the comprehensive nature of the value chain. Focusing solely on marketing aspects overlooks the critical importance of the entire system of activities that contribute to value creation. Claiming that the value chain is irrelevant in modern business practices contradicts its significant role in strategic management, where understanding the interconnections between activities is essential for success. Additionally, limiting it to financial analysis disregards the holistic approach of the value chain, which encompasses operational, marketing, and support aspects rather than purely focusing on financial metrics