Exam for Strategic Management Part III

135. Doctors and other health professionals say it is becoming harder to stay on the right side of the rules as billing requirements grow more convoluted. This is an example of which segment of the general environment? A. economic B. sociocultural C. demographic D. political and legal The general environment is divided into six segments: demographic, sociocultural, political/legal, technological, economic, and global. The political/legal segment of the general environment is concerned with how a society creates and exercises power, including rules, laws, and taxation policies. 136. Crowdsourcing is one form of technology that affects multiple segments of the general environment. Which of the following is not an example of crowdsourcing? A. The Linus open-source operating system B. Yelp online customer comments C. Wikipedia D. The New York Times online Crowdsourcing is the practice in which the Internet is used to tap a broad range of individuals and groups to generate ideas and solve problems. 137. Using the Cuusoo System, Lego develops ideas that are generated by the many children and adults who create a model, take photos, write project descriptions, and submit their idea on the Lego website. This is an example of using __________ to develop new products. A. sociocultural data B. demographic data C. technological data D. crowdsourcing Lego runs its crowdsourcing program with Cuusoo System, a Japanese company. The Lego Cuusoo site helps the company develop ideas that its 180 designers might not come up with on their own. People create a model, take photos, write a project description, and submit their idea on the Lego website (ideas.lego.com). Projects that garner more than 10,000 votes from site visitors are evaluated by designers and executives to ensure they meet such requirements as safety and playability and they fit with the Lego brand. This is an example of using crowdsourcing effectively. 138. Which is considered a force in the five-forces model? A. increased deregulation in an industry B. the threat of government intervention C. recent technological innovation D. rivalry among competing firms The five-forces model describes the competitive environment in terms of five basic competitive forces: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the intensity of rivalry among competitors in an industry. 139. Which of the following firms would likely pose the least competitive threat? A. a firm in the same industry and in the same strategic group B. a competitor to your product where a high switching cost exists C. a firm that produces substitute goods to your product line D. a firm in the same industry and in the nearest strategic group looking to join your group The competitive threat of intense rivalry can result from lack of differentiation or switching costs. When switching costs are high, this threat is lowered. 140. The threat of new entrants is high when there are A. high capital requirements. B. low economies of scale. C. high switching costs. D. high differentiation among competitors products and services. High entry barriers discourage new competitors. Among the major sources of entry barriers are economies of scale, product differentiation, capital requirements, and switching costs. 141. Product differentiation by incumbents act as an entry barrier because A. new entrants cannot differentiate their products. B. incumbents will take legal action if new entrants do not differentiate their products. C. it helps a firm to derive greater economies of scale. D. new entrants will have to spend heavily to overcome existing customer loyalties. When existing competitors have strong brand identification and customer loyalty, differentiation creates a barrier to entry by forcing entrants to spend heavily to overcome existing customer loyalties. 142. Which of the following would be an entry barrier? A. easy access to raw materials B. low switching costs C. large economies of scale D. low capital requirements Among the major sources of entry barriers are economies of scale, product differentiation, capital requirements, switching costs, and access to raw materials and distribution channels. 143. An automobile manufacturer acquires a rental car company. This is an example of A. backward integration. B. forward integration. C. economies of scale. D. product differentiation. An example of forward integration in the text is an automobile manufacturer acquiring a rental car company. In this case, the automobile manufacturer is a potential competitor who is using forward integration to increase marketplace power. 144. The bargaining power of the buyer is greater than that of the supplier when A. volume of purchase is low. B. the buyer profit margin is low. C. cost savings from the supplier's product are minimal. D. threat of backward integration by buyers is low. A buyer group is powerful when it is concentrated or purchases large volumes relative to seller sales, it earns low profits, or the buyers pose a credible threat of backward integration. 145. Buyer power will be greater when A. the products purchased are highly differentiated. B. it is concentrated or when a buyer group purchases large volumes relative to seller sales. C. the industry product is very important to the quality of the buyer end products or services. D. there are high switching costs. A buyer group is powerful when it is concentrated or purchases large volumes relative to seller sales, the products it purchases from the industry are standard or undifferentiated, the buyer faces few switching costs, or the industry product is unimportant to the quality of the buyer products or services. 146. The bargaining power of suppliers increases as A. threat of forward integration by suppliers increases. B. importance of buyers to supplier group increases. C. switching costs for buyers decrease. D. more suppliers enter the market. A supplier group will be powerful when the supplier group is dominated by a few companies and is more concentrated (few firms dominate the industry) than the industry it sells to; the industry is not an important customer of the supplier group; the supplier group products are differentiated or it has built up switching costs for the buyer; or the supplier group poses a credible threat of forward integration. 147. New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a A. threat of entry. B. backward integration. C. threat of substitute products. D. forward integration. Identifying substitute products involves searching for other products or services that can perform the same function as the industry's offerings. This may lead a manager into businesses seemingly far removed from the industry. For example, the airline industry might not consider video cameras much of a threat. But as digital technology has improved and wireless and other forms of telecommunication have become more efficient, teleconferencing has become a viable substitute for business travel. 148. The bargaining power of suppliers is enhanced under the following market condition: A. no threat of forward integration. B. low differentiation of the supplier products. C. greater availability of substitute products. D. dominance by a few suppliers. A supplier group will be powerful when the supplier group is dominated by a few companies and is more concentrated (few firms dominate the industry) than the industry it sells to; the supplier group is not obliged to contend with substitute products for sale to the industry; the supplier group products are differentiated or it has built up switching costs for the buyer; or the supplier group poses a credible threat of forward integration. 149. In the Five-Forces model, conditions under which a supplier group can be powerful include all of the following except A. lack of importance of the buyer to the supplier group. B. high differentiation by the supplier. C. readily available substitute products. D. dominance by a few suppliers. A supplier group will be powerful when the supplier group is dominated by a few companies and is more concentrated (few firms dominate the industry) than the industry it sells to; the supplier group is not obliged to contend with substitute products for sale to the industry; the supplier group products are differentiated or it has built up switching costs for the buyer; or the industry is not an important customer of the supplier group. 150. Because the Internet lowers barriers to entry in most industries, it A. decreases the threat of new entrants. B. increases supplier power. C. makes it easier to build customer loyalty. D. increases the threat of new entrants. In most industries, the threat of new entrants has increased because digital and Internetbased technologies lower barriers to entry. Internet businesses may enjoy savings on traditional expenses which may encourage more entrants who see an opportunity to capture market share by offering a product or performing a service more efficiently than existing competitors. 151. End users are not A. the final consumers in a distribution channel. B. the first customers in a distribution channel. C. likely to have greater bargaining power because of the Internet. D. usually the C in B2C. End users are the final customers in a distribution channel. Sales activity that is labeled B2C is concerned with end users. The Internet is likely to increase the power of these buyers, in part because the Internet provides large amounts of consumer information. 152. Incumbent firms may enjoy increased bargaining power because the Internet A. focuses marketing efforts on end users. B. has reduced the number of wholesalers and distributors. C. increases channel conflict. D. diminishes the power of many distribution channel intermediaries. In some industries, buyer channel intermediaries are dominated by powerful players that control who gains access to the latest goods or the best merchandise. The Internet and wireless communications, however, make it much easier and less expensive for businesses to reach customers directly. Thus, the Internet may increase the power of incumbent firms relative to that of traditional buyer channels. 153. Supplier power has increased because of the Internet for all of the following reasons except A. the growth of new Web-based businesses has created more outlets for suppliers to sell to. B. software that links buyers to a supplier's website has created rapid, low-cost order capabilities. C. the process of disintermediation makes it possible for some suppliers to reach end users directly. D. some suppliers have created Web-based purchasing systems that encourage switching. Several factors contribute to stronger supplier power. First, Web-based business may create more downstream outlets for suppliers to sell to. Second, Web-based purchasing arrangements make purchasing easier and discourage customers from switching. Online procurement systems directly link suppliers and customers, reducing transaction costs and paperwork. Third, the use of proprietary software that links buyers to a supplier website may create a rapid, low-cost ordering capability that discourages the buyer from seeking other sources of supply. Finally, suppliers will have greater power to the extent that they can reach end users directly without intermediaries. 154. In general, the threat of substitutes is heightened because the Internet A. lowers switching costs. B. lowers barriers to entry. C. introduces new ways to accomplish the same task. D. increases output per unit of cost. Along with traditional marketplaces, the Internet has created a new marketplace and a new channel. In general, therefore, the threat of substitutes is heightened because the Internet introduces new ways to accomplish the same tasks. 155. How do infomediaries and consumer information websites increase the intensity of competitive rivalry? A. by shifting customers away from issues of price B. by consolidating the marketing message that consumers use to make a purchase decision C. by making competitors in cyberspace seem less equally balanced D. by highlighting unique selling advantages of a firm Some shopping infomediaries, such as CNET, not only search for the lowest prices on many different products but also rank the customer service quality of different sites that sell similarly priced items. They increase rivalry by consolidating the marketing message that consumers use to make a purchase decision into a few key pieces of information over which the selling company has little control. 156. The value net is a game-theoretic approach that A. extends the value chain analysis. B. uses network analysis to understand the relationships among different companies. C. helps us to understand the evolution of the five forces over time. D. is a way to analyze how the interactions of all the players in a game affect the firm. Based on game-theoretic considerations, Brandenburger and Nalebuff recently introduced the concept of the value net, which in many ways is an extension of the five-forces analysis. The value net represents all the players in the game and analyzes how their interactions affect company ability to generate and appropriate value. 157. In the value net analysis, complementors are A. firms that produce substitute products. B. firms that produce products that have a positive impact on company product value. C. customers who compliment the company for their good products and services. D. firms that supply critical inputs to a company. Complements typically are products or services that have a potential impact on the value of the products or services of that company. Those who produce complements are usually referred to as complementors. Powerful hardware is of no value to a user unless there is software that runs on it. 158. Complements are products or services that have a potential impact on the _________ of the products or services of that company. A. cost B. availability C. value D. substitutability Complements typically are products or services that have a potential impact on the value of the products or services of that company. Those who produce complements are usually referred to as complementors. 159. Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms. These firms paid a royalty to Nintendo for each copy of the game sold. This is an example of Nintendo using _________ products. A. substitute B. complement C. unrelated D. differentiated The success of Nintendo in the early 1990s was a result of its ability to manage its relationship with its complementors. Nintendo built a security chip into the hardware and then licensed the right to develop games to outside firms. These firms paid a royalty to Nintendo for each copy of the game sold. The royalty revenue enabled Nintendo to sell game consoles at close to their cost, thereby increasing their market share, which, in turn, caused more games to be sold and more royalties to be generated. 160. The Apple iPod was enormously successful due in large part to the company strategy of using A. substitute products. B. technical savvy. C. complementors. D. sophisticated software. Complements typically are products or services that have a potential impact on the value of firm's own products or services. Those who produce complements are usually referred to as complementors. In 2002, Steve Jobs began his campaign to cajole the major music companies into selling tracks to iPod users through the iTunes Music Store, an online retail site. Most industry executives, after being burned by illegal file-sharing services like Napster and Kazaa, just wanted digital music to disappear. However, his passionate vision persuaded them to climb on board. He promised to reduce the risks that they faced by offering safeguards against piracy, as well as a hip product (iPod and iPad Touch) that would drive sales. 161. Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified? A. the percentage of the buyer total cost accounted for by the industry product B. the percentage of industry sales required to fill a plant or operate a logistical network to efficient scale C. the buyer switching cost D. the governmental regulatory policy The point of industry analysis is not to declare the industry attractive or unattractive but to understand the underpinnings of competition and the root causes of profitability. As much as possible, analysts should look at industry structure quantitatively, rather than be satisfied with lists of qualitative factors. Many elements of five forces can be quantified: the percentage of the buyer total cost accounted for by the industry product (to understand buyer price sensitivity); the percentage of industry sales required to fill a plant or operate a logistical network to efficient scale (to help assess barriers to entry); and the buyer switching cost (determining the inducement an entrant or rival must offer customers). 162. Strategic groups consist of a group of A. top executives that makes strategies for a company. B. firms within an industry that follows similar strategies. C. executives drawn from different companies within an industry that makes decisions on industry standards. D. firms within an industry that decides to collude rather than compete with each other so that they can increase their profits. Strategic groups are clusters of firms that share similar strategies. Rivalry tends to be greater among firms that are alike. 163. Which of the following statements about strategic groups is false? A. Two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same. B. Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. C. Strategic groups help chart the future directions of firm strategies. D. Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole. In an industry analysis, two assumptions are unassailable: (1) no two firms are totally different, and (2) no two firms are exactly the same. What value is the strategic group concept as an analytical tool? First, strategic groupings help a firm identify barriers to mobility that protect a group from attacks by other groups. They also help chart the future directions of firm strategies and are helpful in thinking through the implications of each industry trend for the strategic group as a whole. 164. Strategic groups consist of firms that are more _____ to each other than firms that are not. A. familiar B. similar C. friendly D. useful In an industry analysis, two assumptions are unassailable: (1) No two firms are totally different, and (2) no two firms are exactly the same. The issue becomes one of identifying groups of firms that are more similar to each other than firms that are not, otherwise known as strategic groups. 165. Strategic groups are clusters of firms that share __________ strategies. A. differing B. the same C. similar D. new Strategic groups are clusters of firms that share similar strategies. 166. Classifying an industry into strategic groups involves judgment. If it is useful as an analytical tool, we must exercise caution in deciding what dimensions to use to map these firms. Dimensions include A. breadth of product and geographic scope. B. price and quality. C. degree of vertical integration. D. management team. Classifying an industry into strategic groups involves judgment. If it is useful as an analytical tool, we must exercise caution in deciding what dimensions to use to map these firms. Dimensions include breadth of product and geographic scope, price/quality, degree of vertical integration, type of distribution (e.g., dealers, mass merchandisers, private label), and so on. 167. Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups, which strategic group is the largest in terms of breadth of product line? A. Ferrari, Lamborghini, Porsche B. Toyota, Ford, General Motors, Chrysler, Honda, Nissan C. Chery, Geely, Tata Motors D. Mercedes, BMW The final group (at the far right) consists of firms with a broad range of products and multiple price points. These firms have entries that compete at both the lower end of the market (e.g., the Ford Focus) and the higher end (e.g., Chevrolet Corvette). 168. Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups, which strategic group is the smallest in terms of breadth of product line? A. Ferrari, Lamborghini, Porsche B. Toyota, Ford, General Motors, Chrysler, Honda, Nissan C. Chery, Geely, Tata Motors D. Mercedes, BMW Three firms, Zhejiang Geely Holding Company, Chery Automobile Company, and Tata Motors have introduced models that bring new meaning to the term subcompact. These have the lowest breadth of product line and are at the lowest price. 169. Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups, which strategic group consists of firms high in product pricing/quality and average in their productline breadth? A. Ferrari, Lamborghini, Porsche B. Toyota, Ford, General Motors, Chrysler, Honda, Nissan C. Chery, Geely, Tata Motors D. Mercedes, BMW The third group (near the middle) consists of firms high in product pricing/quality and average in their product-line breadth. This includes Mercedes and BMW. 170. In 2014, Audi introduced the Q3 SUV at a base price of only $32,500. And BMW, with its 1series, is another well-known example. Such cars, priced in the low $30,000s, compete more directly with products from broad-line manufacturers like Ford, General Motors, and Toyota. This suggests that members of a strategic group can overcome _____ barriers and migrate to other groups that they find attractive if they are willing to commit time and resources. A. mobility B. competitive C. pricing D. cost In 2014, Audi introduced the Q3 SUV at a base price of only 32,500 USD. And BMW, with its 1-series, is another well-known example. Such cars, priced in the low 30,000 USD, compete more directly with products from broad-line manufacturers like Ford, General Motors, and Toyota. This suggests that members of a strategic group can overcome mobility barriers and migrate to other groups that they find attractive if they are willing to commit time and resources. 171. The strategic groups concept is valuable for identifying groups with _______ competitive positions. A. marginal B. exceptional C. healthy D. poor The strategic groups concept is valuable for determining mobility barriers across groups, identifying groups with marginal competitive positions, charting the future directions of firm strategies, and assessing the implications of industry trends for the strategic group as a whole. 172. The strategic groups concept is valuable for charting the ______ directions of firm strategies. A. historical B. past C. present D. future The strategic groups concept is valuable for determining mobility barriers across groups, identifying groups with marginal competitive positions, charting the future directions of firm strategies, and assessing the implications of industry trends for the strategic group as a whole. 173. The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole. A. trends B. positions C. experience D. wealth The strategic groups concept is valuable for determining mobility barriers across groups, identifying groups with marginal competitive positions, charting the future directions of firm strategies, and assessing the implications of industry trends for the strategic group as a whole. Ch3 Multiple Choice Questions 92. 93. Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis? A. Organizational strengths may not lead to competitive advantage. B. The SWOT focus on the external environment is too broad and integrative. C. SWOT gives a one-shot view of a moving target. D. SWOT overemphasizes a single dimension of strategy. Among the limitations of SWOT are: organizational strengths may not lead to competitive advantage; the SWOT focus on the external environment is too narrow; it gives a one-shot view of a moving target; and it overemphasizes a single dimension of strategy. Which of the following is a limitation of SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis? A. Organizational strengths may not lead to competitive advantage. B. The SWOT focus on internal environment is too broad and integrative. C. SWOT gives a multi-shot view of a moving target. D. SWOT overemphasizes a multiple dimensions of strategy. Among the limitations of SWOT are: organizational strengths may not lead to competitive advantage; the SWOT focus on the external environment is too narrow; it gives a one-shot view of a moving target; and it overemphasizes a single dimension of strategy. 94. A key __________ of SWOT is that it is primarily a static assessment. A. strength B. threat C. opportunity D. weakness A key weakness of SWOT is that it is primarily a static assessment. It focuses too much of company attention on one moment in time. Essentially, this is like studying a single frame of a motion picture. 95. Strategists who rely on traditional definitions of their industry and competitive environment often focus their sights too ___________ on current customers, technologies, and competitors. A. broadly B. narrowly C. aggressively D. widely Strategists who rely on traditional definitions of their industry and competitive environment often focus their sights too narrowly on current customers, technologies, and competitors. 96. Company __________, no matter how unique or impressive, may not enable it to achieve a competitive advantage in the marketplace. A. strengths and opportunities B. strengths and threats C. opportunities D. strengths and capabilities Company strengths and capabilities, no matter how unique or impressive, may not enable it to achieve a competitive advantage in the marketplace. 97. Sometimes firms become preoccupied with _________ or a key feature of the product or service they are offering and ignore other factors needed for competitive success. A. multiple strengths B. multiple opportunities C. a single strength D. a single opportunity Sometimes firms become preoccupied with a single strength or a key feature of the product or service they are offering and ignore other factors needed for competitive success. 98. __________ among organizations is played out over time. A. Negotiation B. Sustainability C. Competition D. Learning Competition among organizations is played out over time. 99. Focusing too narrowly on current customers, technologies, and competitors can lead to a failure to notice important changes on the periphery of their environment that may trigger the need to redefine industry boundaries and identify a whole new set of competitive relationships. This is a result of relying A. on traditional definitions of all industries and competitive environments. B. on traditional definitions of the relevant industry and competitive environment. C. solely on intuition. D. on a superficial evaluation of the relevant industry and competitive environment. Strategists who rely on traditional definitions of their industry and competitive environment often focus their sights too narrowly on current customers, technologies, and competitors. Hence they fail to notice important changes on the periphery of their environment that may trigger the need to redefine industry boundaries and identify a whole new set of competitive relationships. 100. Toyota, the giant automaker, paid a heavy price for its ___________ emphasis on cost control. The resulting problems with quality and the negative publicity led to severe financial losses and an erosion of its reputation in many markets. A. minimal B. superficial C. low-budget D. excessive Toyota, the giant automaker, paid a heavy price for its excessive emphasis on cost control. The resulting problems with quality and the negative publicity led to severe financial losses and an erosion of its reputation in many markets. 101. Competition among organizations is played out over time. As circumstances, capabilities, and strategies change, _________ techniques do not reveal the dynamics of the competitive environment. A. transactional analysis B. variable analysis C. static analysis D. continuous Competition among organizations is played out over time. As circumstances, capabilities, and strategies change, static analysis techniques do not reveal the dynamics of the competitive environment. 102. A SWOT analysis alone __________ helps a firm develop competitive advantages that it can sustain over time. A. usually B. often C. rarely D. regularly SWOT analysis has much to offer, but only as a starting point. By itself, it rarely helps a firm develop competitive advantages that it can sustain over time. 103. Inbound logistics include A. machining and packaging. B. repair and parts supply. C. promotion and packaging. D. warehousing and inventory control. Inbound logistics is associated primarily with receiving, storing, and distributing inputs to the product. It includes material handling, warehousing, inventory control, vehicle scheduling, and returns to suppliers. 104. In assessing its primary activities, an airline would examine A. employee training programs. B. baggage handling. C. criteria for lease versus purchase decisions. D. the effectiveness of its lobbying activities. Five primary activities: inbound logistics, operations (which would include baggage handling for an airline), outbound logistics, marketing and sales, and service contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale. 105. Advertising is a __________ activity. Supply of replacement parts is a __________ activity. A. support; primary B. primary; primary C. primary; support D. support; secondary Five primary activities (inbound logistics, operations, outbound logistics, marketing and sales, and service) contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale. Inbound logistics is primarily associated with receiving, storing, and distributing inputs to the product. Marketing and sales activities include advertising. 106. Which of the following examples demonstrates how successful organizations manage their primary activities? A. Motorola has revised its compensation system to reward employees who learn a variety of skills. B. Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times. C. National Steel improved its efficiency by reducing the number of job classifications. D. Hewlett Packard has cut lead time from five days to one by employing JIT inventory management. Just-in-time (JIT) inventory systems were designed to achieve efficient inbound logistics, which is one of the five primary activities in value-chain analysis. With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed. 107. Which of the following is not an advantage of Just-In-Time inventory systems? A. reduced raw material storage costs B. minimized idle production facilities and workers C. reduced work-in-process inventories D. reduced dependence on suppliers With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed. This requires greater reliance on superior performance of suppliers. 108. XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system. A. Last In, First Out (LIFO) B. Highly mechanized C. First In, First Out (FIFO) D. Just-In-Time (JIT) Just-in-time (JIT) inventory systems were designed to achieve efficient inbound logistics, which is one of the five primary activities in value-chain analysis. With JIT inventory systems, parts deliveries arrive at the assembly plants only hours before they are needed, which reduces idle production capacity. 109. ___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. A. Services B. Inbound logistics C. Outbound logistics D. Operations Outbound logistics is associated with collecting, storing, and distributing the product or service to buyers. These activities include finished goods, warehousing, material handling, delivery vehicle operation, order processing, and scheduling. 110. Customer service includes A. product promotion. B. procurement of critical supplies. C. product distribution. D. parts supply. Service activity includes all actions associated with providing service to enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment. 111. Which of the following is a support activity? A. inbound logistics B. customer service C. technology development D. operations Support activities in the value chain can be divided into four generic categories: general administration, human resource management, technology development, and procurement. 112. Which of the following lists consists of support activities? A. human resource management, technology development, customer service, and procurement B. human resource management, customer service, marketing and sales, and operations C. customer service, information systems, technology development, and procurement D. human resource management, technology development, procurement, and general administration Support activities in the value chain can be divided into four generic categories: general administration, human resource management, technology development, and procurement.