The Key to Outsourcing Is to Purchase from the Outside

question 38

Multiple Choice

The key to outsourcing is to purchase from the outside only those activities that

• A) are not key to the company's distinctive competence.
• B) are very expensive.
• C) provide the company competitive advantage.
• D) are provided by an important supplier.
• E) are not very expensive.

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Definitions:

Performance Metrics

Quantitative and qualitative measurements used to assess, compare, and track the performance of a process, product, or organization.

Defective Units

Products that do not meet a company's quality standards and criteria, often leading to rework or scrap.

Learning And Growth Perspective

A component of the Balanced Scorecard that focuses on the intangible assets of an organization, particularly human capital, information capital, and organizational culture.

Performance Metrics

Quantitative measures used to assess the effectiveness and efficiency of an operation or process.