What is the difference between primary and secondary activities in the value
chain? Describe the functions of configuration and coordination in these value
activities.
Chapter 12 Strategies
for International Business
#Daniels #15edition #StrategiesforInternationalBusiness #Chapter12International Business: Environments and Operations, 15e, Global Edition (Daniels et al.)
Daniels, 15edition, Strategies for International Business, Chapter 12
Answer:
ReplyDeleteA value chain has primary and secondary activities. Primary activities are those involved in the physical movement of raw materials and finished products, in the production of goods and services, and in the marketing, sales, and subsequent services of the outputs of the business. Secondary activities make up the managerial infrastructure of the firm that supports carrying out the primary activities. The support activities include the processes and systems installed to coordinate decisions and transactions among the various value activities. Secondary activities apply to each primary activity. An MNEs competitiveness depends on efficiently distributing value activities and effectively linking them. Distributing value activities around the world is the matter of configuration. Linking them is the matter of coordination. Configuration and coordination, flip sides of the value chain coin, are intrinsically related.