Firm infrastructure in the value chain

Firm infrastructure in the value chain

• A. Supports the work of the entire value chain
• B. Manages supplier relationships
• C. Directly converts inputs to outputs
• D. Sells products to customers

Answer: (A)

Firm infrastructure serves as the support framework that underpins the entire value chain. It encompasses the systems, processes, and organizational structure—such as general management, planning and control systems, finance, legal, governance, and information technology—that coordinate and enable every other activity to function smoothly. Because these elements provide the policies, resources, and oversight that touch inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service, they serve the whole chain rather than performing a single transformation or external-facing task. The other options describe activities that are more directly involved in producing or selling value—managing supplier relationships is the procurement area within support activities, direct conversion is operations, and selling products is marketing and sales.

Firm infrastructure serves as the support framework that underpins the entire value chain. It encompasses the systems, processes, and organizational structure—such as general management, planning and control systems, finance, legal, governance, and information technology—that coordinate and enable every other activity to function smoothly. Because these elements provide the policies, resources, and oversight that touch inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service, they serve the whole chain rather than performing a single transformation or external-facing task. The other options describe activities that are more directly involved in producing or selling value—managing supplier relationships is the procurement area within support activities, direct conversion is operations, and selling products is marketing and sales.