Which of the following is NOT a primary activity in the value chain?

• A. Marketing and sales
• B. Inbound logistics
• C. Operations
• D. Procurement

Answer: (D)

In Porter’s value chain, activities are grouped into primary activities and support activities. Primary activities are the ones that directly create value by transforming inputs into the product and delivering it to customers: inbound logistics, operations, outbound logistics, marketing and sales, and services. Procurement, on the other hand, is a support activity. It supplies the inputs and resources that the primary activities need, enabling them to function more efficiently, but it doesn’t by itself move or transform the product toward the customer. Because of this, procurement is classified as a support activity and is not a primary activity in the value chain.