The Decision to Outsource Opens the Firm Up to Certain

question 179

Multiple Choice

The decision to outsource opens the firm up to certain risks, among them _________ and ________.

• A)lower costs; fewer task-specific investments
• B)loss of direct control over operations; need to disclose proprietary information
• C)access to greater expertise; greater demand variability
• D)greater capacity rigidity; tight knowledge control
• E)higher marketing costs; small orders

---

Definitions:

Dominant Culture

The prevailing values, beliefs, and norms in an organization or society, which often influence the behavior and attitudes of its members.

Organizational Culture

The shared values, beliefs, and norms that influence the behavior and practices of individuals within an organization.

Artifact

An object made by a human being, typically an item of cultural or historical interest.

Rituals

Rituals are a series of actions or type of behavior regularly and invariably followed by someone, often within a cultural or organizational context.