Acme Software (Scenario) Acme Software Is a U.S.-Based Maker of Software Products for Software

question 15

Multiple Choice

Acme Software (Scenario)
Acme Software is a U.S.-based maker of software products for the health care industry. Recently Acme has been investigating whether it would be beneficial to internationalize some of its value-chain activities. Acme hires a consulting group to help determine which, if any, value-chain activities could be conducted abroad to promote business growth. The consulting group identifies two health care software development companies in India that could provide programming services at a lower cost than Acme's current expenditures for programming. In addition, the consultants conduct international market research that shows that German health care companies have a strong demand for the type of software that Acme offers.
-Which of the following would be most important for Acme to determine before outsourcing its programming services to India?

• A) What benefits have Indian companies gained historically from internationalizing their value-chain activities?
• B) Do Indian businesses outsource value-chain activities to Europe?
• C) Would the lower cost of outsourcing allow Acme to sustain a competitive advantage in its business operations?
• D) Is either of the Indian health care companies interested in moving their operations abroad?

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Definitions:

Expectancy-Value Model

A psychological model that explains how the motivation to perform a behavior is influenced by the expectation of success and the value of the success to the individual.

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Financial support awarded to a student on the basis of academic or other achievements to further their education.

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A region of the brain involved in regulating hunger, satiety, and various aspects of metabolism.

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