Which of the following is a primary activity of the value chain?

• A. Inbound logistics
• B. Firm infrastructure
• C. HRM
• D. Procurement

Answer: (A)

Porter’s value chain distinguishes primary activities, which directly create and deliver the product, from support activities, which enable the primary activities. Inbound logistics fits in the primary group because it involves receiving, storing, and distributing the inputs that go into production. These steps—like supplier shipments, receiving, inventory control, and materials handling—directly affect how quickly and cheaply the product can be produced, adding value early in the chain. The other options are classified as support activities: firm infrastructure covers planning and governance, HRM handles people management, and procurement purchases inputs but supports the whole chain rather than directly transforming inputs into the product. So inbound logistics is the primary activity.