Support activities

Definition

Support activities are the essential functions in a business that enable primary activities to be carried out efficiently and effectively. These activities, such as human resource management, technology development, and procurement, help organizations enhance their core competencies and build competitive advantage by ensuring that the primary operations can function smoothly. By optimizing support activities, businesses can lower costs, improve service quality, and respond more swiftly to market demands.

5 Must Know Facts For Your Next Test

1. Support activities are crucial for enhancing the efficiency and effectiveness of primary activities, leading to improved operational performance.
2. Examples of support activities include human resource management, which recruits and trains employees, and technology development, which involves research and innovation.
3. By aligning support activities with strategic goals, organizations can foster better collaboration between different departments.
4. Efficient procurement practices within support activities can lead to cost savings and improved supplier relationships.
5. Investing in support activities can help companies adapt to changes in the marketplace and maintain a competitive edge.

Review Questions

• How do support activities enhance the overall efficiency of primary activities within an organization?
  • Support activities enhance the overall efficiency of primary activities by providing essential resources and services that allow those core functions to operate smoothly. For example, human resource management ensures that the organization has skilled personnel in place, while technology development provides the necessary tools for innovation. When these support activities are optimized, they reduce bottlenecks and streamline processes, leading to better performance in delivering products or services.
• Evaluate the relationship between support activities and core competencies in creating competitive advantage.
  • The relationship between support activities and core competencies is vital for creating competitive advantage. Support activities like procurement and technology development can reinforce an organization’s core competencies by ensuring access to high-quality materials or fostering innovation. When companies align their support activities with their unique strengths, they can enhance their value proposition, differentiate themselves from competitors, and respond more effectively to customer needs.
• Synthesize how integrating support activities into the value chain impacts an organization's strategic positioning in its market.
  • Integrating support activities into the value chain significantly impacts an organization's strategic positioning by creating a holistic approach to operational efficiency and competitive differentiation. When support functions are seamlessly incorporated with primary activities, organizations can optimize resource allocation, reduce costs, and improve service delivery. This integration fosters agility in responding to market changes, enhances customer satisfaction, and ultimately strengthens the organization’s market position by leveraging both core competencies and effective support systems.

Related terms

Primary Activities: The core operations in a business that directly contribute to the creation of goods or services, including inbound logistics, operations, outbound logistics, marketing and sales, and service.

Core Competencies: The unique strengths and resources that give an organization a competitive edge in its market.

Value Chain: A model that outlines the full range of activities required to create a product or service, highlighting the interplay between primary and support activities.