Which of the following is NOT listed as a primary activity in the value chain?

• A. Operations
• B. Finance
• C. Supply chain management
• D. Distribution

Answer: (B)

In Porter’s value chain, activities are split into those that directly add value in creating and delivering the product (primary activities) and those that enable and support those primary actions (support activities). Primary activities are the steps that transform inputs into the final product and get it to customers: the production process itself and the means by which the product is moved to market and used.

Operations clearly fits here because it’s the actual production work that turns inputs into the finished product. Distribution also fits because getting the product to customers is a direct part of delivering value. Supply chain management plays a coordinating role across the chain—aligning sourcing, production, and delivery—so it supports the primary activities rather than standing as a separate primary activity itself. Finance, however, is a support function that underpins the whole system (planning, budgeting, and managing resources) but is not one of the value-adding steps in the sequence of primary activities. That’s why finance is not listed among the primary activities.