Cima E2 Exam Question No 43

Question No 43:

`Using The Value Chain

The value chain can be used:

• To examine the firm in terms of the processes it uses to serve customers, and the value added, to add more value or remove non-value adding activities.
• As a basis to drive a competitive strategy of cost leadership or differentiation
• Understanding the linkages between processes (e.g. how technology supports each of the primary activities, or how production quality affects after-sales service)
• As a way to analyse competitors for their strengthsand weaknesses.

Cima E2 Exam Question No 42

Question No 42:

Porter's Value Chain - Support Activities

Procurement - The acquisition of inputs, or resources, for the firm. Human Resource management - Consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel. Technological Development - Pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm's transformation of inputs into outputs. Infrastructure - Serves the company's needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management.

Cima E2 Exam Question No 41

Question No 41:

Porter's Value Chain - Primary Activities?

• Inbound logistics - The relationships with suppliers including all the activities required to receive, store, and disseminate inputs.
• Operations - Activities which transform inputs into outputs (products and services).
• Outbound logistics - Activities required to collect, store, and distribute the output.
• Marketing and sales - Activities which inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase.
• After sales service - Activities required to keep the product or service working effectively for the buyer after it is sold and delivered.

Cima E2 Exam Question No 40

Question No 40:

What is management information?

Management Information Strategic information - For directors to make strategic decisions and understand company performance.