Determine If the Following Scenario Warrants a Make or Buy

question 11

Essay

Determine if the following scenario warrants a make or buy decision.
$$\begin{array} { | l | l | } \hline \text { Buy } & \begin{array} { l } \text { An orgarization would like to venture into social } \\\text { analytics but has no experience or skills to begin } \\\text { the efforts. }\end{array} \\\hline \text { Make } & \begin{array} { l } \text { A retailer wants to upgrade its Web site bidding } \\\text { system; the bidding system is developed internally } \\\text { and it provides a strategic advarnage over other } \\\text { retailers. }\end{array} \\\hline \text { Make } & \begin{array} { l } \text { An irnovative approach to customized } \\\text { maruffacturing needs to be kept a secret; the hope is } \\\text { that this new process will suprise and shakeup the } \\\text { industry. }\end{array} \\\hline \text { Buy } & \begin{array} { l } \text { The internal website designer has linited } \\\text { availability and is always consumed by the } \\\text { marketing department. }\end{array} \\\hline\end{array}$$

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Definitions:

ATC

Stands for "Average Total Cost," which refers to the total cost divided by the quantity of goods produced, in economics.

ATC Curve

Represents the average total cost of production at different levels of output, illustrating how cost per unit changes with changes in output.

Efficiency

Efficiency refers to the optimal use of resources to achieve a desired output with minimal waste or expense, often analyzed in economic, energy, and operational contexts.

Profit Maximization

The process or strategy of adjusting production and operational variables to achieve the highest possible return or profit.