Which type of activities directly adds value in the value chain?

Prepare for UCF's MAN4720 Strategic Management Capstone Midterm with detailed quizzes, flashcards, and comprehensive explanations. Ensure your success with targeted preparation.

The correct answer identifies primary activities as those that directly add value in the value chain. Primary activities are the core processes that contribute to the creation and delivery of products or services, which include inbound logistics, operations, outbound logistics, marketing and sales, and service. These activities are essential as they have a direct impact on a company's ability to generate revenue and meet customer needs.

In contrast, support activities, while critical for overall business operations, do not directly engage in the production or delivery process. They facilitate primary activities and can enhance efficiency but are not the direct source of value creation. Secondary activities, a term often used interchangeably with support activities, also fall into this category. Finally, indirect activities typically refer to tasks that support the organization as a whole, but do not focus specifically on contributing value to the production and delivery of the core offerings.

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