CAF-7 · Chapter 5 · Question 10 of 15
A coffeehouse chain negotiates a new long-term contract with a supplier in Brazil to buy premium coffee beans at a significantly lower price. In Porter's Value Chain, the act of identifying and negotiating with this supplier falls under:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Procurement
Explanation
Procurement is a support activity that relates to the process of identifying sources of supply, negotiating contracts, and purchasing the inputs used in the firm's value chain. It is distinct from the physical handling of goods (inbound logistics).
More Internal Analysis MCQs
- Q12During a SWOT analysis, an apparel manufacturer realizes that changing societal trends towards casual home-wear will greatly increase the…
- Q13A technology company has a highly centralized management structure that causes severe delays in decision-making, resulting in missed…
- Q14A local pharmaceutical company identifies that a new global trade agreement will soon allow massive international competitors to export…
- Q15Which of the following activities in Porter's Value Chain is primarily responsible for ensuring that customers are aware of the product…
- Q1A retail bank employs standard IT systems and basic customer service protocols that are identical to every other bank in the country…