ACCA Strategic Business Leader (SBL) Practice Exam

The correct response identifies Research and Development as not being one of the primary activities in the value chain. In the framework of Michael Porter’s value chain, primary activities are those directly involved in creating and delivering a product or service. These include operations, inbound logistics, outbound logistics, sales and marketing, and service. Each of these categories represents a step in the value creation process, focusing on the creation, sales, and service of the product.

Research and Development, while crucial for innovation and product improvement, falls under support activities in the value chain model. Support activities facilitate the primary activities and help in optimizing their efficiency but do not directly contribute to the value-adding steps of production or sales. They include functions like technology development, procurement, and human resource management. Recognizing this distinction between primary and support activities is essential for understanding how businesses create and sustain competitive advantage.