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What are the primary or secondary activities in value chain analysis?
Primary or secondary activities incur costs, but within combination along with other activities give customer satisfaction and thus added value.
a. Primary activities are activities or processes directly included in the provision of the good or service the organisation creates or provides for example, inbound logistics, outbound logistics, operations and marketing/sales and after sales service
b. Secondary or support processes support the primary activities through providing essential support and resources, but are not directly included in the provision of the good or service the organisation provides or makes for example, infrastructure, HRM, procurement and technology.
The following is a payoff table giving profits for various situations. States of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 120 140 120 Alternative 3 200 100
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