7.GHJ Co is a manufacturing company that makes one product. The production process is labour
intensive and as a result the product is highly specialised. GHJ Co also provides its customers
with maintenance and after sales service.
Department W uses materials and labour to produce the final product.
Department X stores the final product and delivers it to customers.
Department Y is in charge of advertising and promotion of the final product.
Department Z is responsible for providing spare parts to customers.
The following are all primary activities from Porter's value chain
B After sales service
C Outbound logistics
D Marketing and sales
For each of the departments, select the corresponding primary activity listed above
(i) Department W
(ii) Department X
(iii) Department Y
(iv) Department Z
8.Which two of the following factors indicate that suppliers have high bargaining power in an industry?
A There are a large number of suppliers
B There is a lack of substitute products available
C Switching costs for customers are low
D The product supplied is highly differentiated
E Product quality is not important to customers