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In the remainder of this note, we employ an activity template, the value chain, that can guide managers in breaking down the firm into activities.²² The value chain divides all activities into two classes: primary activities that directly generate a good or service, and support activities that make the primary activities possible. Primary activities are broken down further into inbound logistics, operations, outbound logistics, marketing and sales, and after-sales service. Support activities include procurement of inputs, development of technology and human resources, and general firm infrastructure. Figure 6 shows the value chain of an Internet start-up that sells compact discs online and ships them by mail to customers.