BMIS – SA – Q9.5 – Operations Strategy

Where does the finance department sit in the value chain?

A Operations

B Service

C Firm infrastructure

D Procurement

C

Explanation:
The correct answer is C because the finance department is a head office function classified as a support activity within the firm infrastructure in Porter’s value chain. Firm infrastructure includes activities like finance, accounting, and general management that support the entire organization. Option A, operations, relates to production processes. Option B, service, involves post-sale customer support. Option D, procurement, focuses on purchasing inputs, none of which encompass the finance department’s role.