Which of the following is a myth around the use of the Porter’s value chain framework?

(A) This framework helps us zoom in on those activity groups that add the most value.

(B) It’s only appropriate for analyzing manufacturing firms.

(C) For service firms inbound or outbound logistics may not be very important.

(D) It’s often misapplied and applied for its own sake.


Porter’s value chain framework is appropriate only for analyzing manufacturing firms is a myth. Actually, Porter’s value chain framework can be applied to any segment of the economy. It can be used to understand the level of competition within an industry or organisation and can also be used to enhance the profitability of an organisation.


This question is a part of the Weekly Quiz 1 section from the Organisational design: Know your organisation course. You can check out all the quiz answers to this exam in our Organisational design: Know your organisation Quiz Answers page.

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