What Is the Major Difference Between Vertical Integration and Outsourcing

question 38

Multiple Choice

What is the major difference between vertical integration and outsourcing?

• A)Vertical integration is ownership of a part of the supply chain,outsourcing has no ownership.
• B)Outsourcing is ownership of a part of the supply chain,vertical integration has no ownership.
• C)Outsourcing uses external suppliers to perform some production/service functions while production/service functions through vertical integration are strictly in-house.
• D)Outsourcing is a long term operations strategy where vertical integration is short term.
• E)Vertical integration is usually limited to services,where as outsourcing usually deals with production of goods.

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Group Projects

Educational or work-related tasks undertaken by a team of individuals collaborating towards a common goal.

Malingering

Intentional production of false or exaggerated symptoms to achieve external benefits such as avoiding work or obtaining drugs.

Door-In-The-Face

A persuasion technique where an initial, large request is made knowing it will be refused so that a smaller, more moderate request will be accepted.