Support Activities

Definition

Support activities refer to the various functions that assist and enhance primary activities within a value chain, enabling organizations to operate efficiently and effectively. These activities include areas such as procurement, technology development, human resource management, and firm infrastructure, all of which play a crucial role in improving the overall value delivered by the business, especially in developing economies where resource optimization is critical.

5 Must Know Facts For Your Next Test

1. Support activities are essential for enhancing the effectiveness of primary activities by ensuring resources are utilized efficiently.
2. In developing economies, support activities can often be more crucial due to limited resources and infrastructure, which makes their optimization vital.
3. The integration of support activities with primary activities can lead to improved competitive advantage by creating more value for customers.
4. Technology development within support activities can drive innovation and efficiency, helping businesses adapt to changing market conditions.
5. Effective human resource management as a support activity can lead to a more skilled workforce that directly impacts the productivity of primary activities.

Review Questions

• How do support activities enhance the efficiency of primary activities within a value chain?
  • Support activities enhance the efficiency of primary activities by providing essential resources and infrastructure needed for smooth operations. For instance, effective procurement ensures that raw materials are readily available, while human resource management focuses on recruiting and training skilled employees. This synergy allows primary activities to function optimally, ultimately improving the overall value delivered to customers.
• Discuss the role of technology development as a support activity in improving competitiveness in developing economies.
  • Technology development plays a vital role as a support activity in improving competitiveness by fostering innovation and efficiency. In developing economies, where traditional resources may be scarce or outdated, leveraging technology can help businesses streamline operations and reduce costs. This can lead to increased productivity and better product offerings, allowing companies to compete more effectively in the market.
• Evaluate the impact of integrating support activities with primary activities on overall business performance in developing economies.
  • Integrating support activities with primary activities significantly enhances overall business performance in developing economies by creating a cohesive operational framework. This integration allows for improved communication and collaboration across different departments, leading to more informed decision-making and streamlined processes. By optimizing both support and primary activities, businesses can better respond to market demands, improve customer satisfaction, and achieve sustainable growth in challenging economic environments.

Related terms

Value Chain: The sequence of activities that a company performs to deliver a product or service to the market, consisting of primary and support activities.

Primary Activities: The main activities involved in creating and delivering a product or service, including inbound logistics, operations, outbound logistics, marketing and sales, and service.

Procurement: The process of acquiring goods and services that are essential for the company's operations, which is a key support activity in optimizing the value chain.