The Big Risk of Employing an Outsourcing Strategy Is

question 103

Multiple Choice

The big risk of employing an outsourcing strategy is

• A)causing the company to become partially integrated instead of being fully integrated.
• B)hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
• C)hurting a company's R&D capability.
• D)putting the company in the position of being a late mover instead of an early mover.
• E)increasing the firm's risk exposure to both supply chain management failures and shifts in the composition of the industry value chain.

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Definitions:

High-Risk Situation

Circumstances or environments that have an increased likelihood of leading to negative or undesired outcomes.

High-Risk Situations

Situations that have a higher probability of leading to undesired outcomes or dangers.

Unhealthy Behaviors

Actions or habits that negatively affect an individual’s physical or mental health, such as smoking or excessive drinking.

Eating Out

The practice of consuming meals prepared and served by a food establishment rather than eating at home.