It Is Increasingly Difficult for a Firm to Develop and Sustain

question 42

Multiple Choice

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and

• A) the rapid development of the Internet's capabilities.
• B) extensive use of outsourcing within the borders of the U.S.
• C) the declining number of inventions and patents developed by U.S. citizens.
• D) the simultaneous erosion of the U.S. work ethic and the U.S. education system.

Evaluate the implications of outsourcing on employee morale, confidentiality issues, and the safeguarding of competitive advantage.

Distinguish between core and non-core functions and their suitability for outsourcing.

Comprehend the process of selecting an outsourcing partner, including the importance of reference checks and quality assurance.

Understand the concept of competencies as sources of competitive advantage and how outsourcing affects organizational competencies.

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Definitions:

Cladistic Analysis

A method of analyzing the evolutionary relationships between groups of organisms by classifying them based on common ancestry.

Outgroup

In cladistics, a taxon that represents an approximation of the ancestral condition; the outgroup is related to the ingroup (the members of the group under study) but separated from the ingroup lineage before they diversified.

Diverges

Moves or extends in different directions from a common point, or becomes fundamentally different in character or form.

Consortium

An association, typically of several business companies, created to undertake a project that is beyond the resources of any one member.