Classify each of Cortez’s actions as one of the value chain’s primary processes— research and development, design, supply, production, marketing, distribution, or customer service.
The Vaue Chain
Edwin Cortez recently opened his own company. In order to improve the business, he will be undertaking the following actions:
a. Engaging an accountant to help analyze progress in meeting the objectives of the company
b. Hiring a company to handle payroll records and employee benefits
c. Developing a logo for labeling and packaging the ceramics
d. Making gift packages by placing gourmet food products in ceramic pots and wrap- ping them in plastic
e. Engaging an attorney to write contracts
f. Traveling to Mexico himself to arrange for the purchase of products and their shipment back to the company
g. Arranging new ways of taking orders over the Internet and shipping the products
h. Keeping track of the characteristics of customers and the number and types of products they buy
i. Following up with customers to see if they received the products and if they are happy with them
j. Arranging for an outside firm to keep the accounting records
k. Distributing brochures that display the ceramics and refer to the website
1. Classify each of Cortez’s actions as one of the value chain’s primary processes— research and development, design, supply, production, marketing, distribution, or customer service—or as a support service—human resources, legal services, information systems, or management accounting.
2. Accounting Connection Of these actions, which are the most likely candidates for outsourcing? Why?