Critics of Companies That Use Outsourcing Contend That Shifting Responsibility

question 31

Multiple Choice

Critics of companies that use outsourcing contend that shifting responsibility for performing value chain activities to outside specialists

• A)has the disadvantage of raising fixed costs and reducing variable costs and makes it harder to develop distinctive competencies.
• B)can hollow out a company's knowledge base and capabilities, leaving it at the mercy of outside suppliers, and short of the resource strengths to be a master of its own destiny.
• C)results in less organizational flexibility and leads to sometimes exorbitant costs in collaborating with outside suppliers and strategic partners.
• D)slows down decision-making on key strategic issues because outside suppliers have to be consulted first.
• E)lowers the morale of company employees, dampens a company's ability to implement best practices, and results in greater bureaucracy and slower decision-making.

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Definitions:

Modern City

An urban area that features advanced infrastructure, high population density, and significant technological advancements, reflecting contemporary societal and architectural trends.

Beijing

The capital city of China, known for its rich historical sites including the Forbidden City and the Great Wall, as well as being a major hub for political, cultural, and educational activities.

Geumgangsan

A mountain located in North Korea, considered sacred and famous for its beautiful scenery, historic Buddhist temples, and art.

Jeong Seon

A prominent Korean landscape painter from the Joseon Dynasty, known for his true-view landscape paintings.