Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

which has given it an advantage due to significant economies of scale. MBV still 
retails its products at a similar price to its rivals. 
(iv) 
The market for fine furniture in country G is growing very slowly.
(1 mark each, total = 4 marks)
(Total: 4 marks) 
7
 
(a)
 
Here are four short references to activities within Porter’s value chain: 
A 
Storing and handling inputs 
B 
Activities after the point of sale 
C 
The way the business is organised 
D 
Purchasing of all inputs, including materials 
Required: 
Identify the description above which is associated with each of the following value 
chain activities, by writing A, B, C, D or None. 
(i) Inbound 
logistics 
(ii) Procurement 
(iii) Service 
(iv) Operations 
(v) Infrastructure
(0.5 marks each, total = 2.5 marks)
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
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KA P LA N P UBL I SH IN G 
(b) 
Below are a number of statements regarding Porter’s generic strategies. 
A 
Focus involves offering general goods to a small segment of the market at a 
low price 
B 
Cost leadership involves manufacturing goods more efficiently than rivals 
C 
Businesses may become cost leaders by making their goods a lower quality 
than their rivals 
D 
A focus strategy tends to allow businesses to charge a premium price 
E 
Differentiation involves charging a premium for a product due to its actual or 
perceived benefits to the customer 
F 
Businesses that are stuck in the middle are trying to sell products at too high a 
price.