What are the merits of outsourcing the performance of certain value chain activities as opposed to performing them in-house? Under what circumstances does outsourcing make good strategic sense?
What will be an ideal response?
The advantages of outsourcing include: (1) an activity can be performed better or more cheaply by outside specialists; (2) said activity is not crucial to the firm's ability to achieve sustainable competitive advantage and will not hollow out its capabilities, core competencies, or technical know-how; (3) it improves organizational flexibility and speeds time to market; (4) it reduces the company's risk exposure to changing technology and/or buyer preferences; and (5) it allows a company to concentrate on its core business, leverage its key resources and core competencies, and do even better what it already does best.
You might also like to view...
The __________ is designed to monitor and enforce trade agreements.
A. World Bank B. WTO C. IMF D. GATT E. EU
Which of the following types of business is least likely to employ a conversion process?
A. Machine shop B. Retail store C. Bakery D. Restaurant
Partners in a limited partnership who invest capital and manage the business are called general partners
Indicate whether the statement is true or false
Llewelyn Company paid the amount due on a purchase of merchandise on account. Llewelyn uses the perpetual inventory system. Which of the following reflects the effect of the payment on the financial statements? Asset=Liab.+Stk.EquityRev.-Exp.=Net Inc.Stmt ofCash FlowsA.-=-+NANA-NA=NA- OAB.-=-+NANA-+=-- OAC.+ -=NA+NANA-NA=NA- IAD.+ -=NA+NANA-NA=NA- OA
A. Option A B. Option B C. Option C D. Option D