What Is NOT a Rationale for a Company to Pursue

question 71

Multiple Choice

What is NOT a rationale for a company to pursue outsourcing as a strategy execution step in order to enhance the performance of value chain activities?

• A)Outsourcing support services often has the disadvantage of raising fixed and variable costs.
• B)Outsourcing critics contend that shifting responsibility for performing value chain activities to outside specialists 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)Outsourcing the performance of certain value chain activities to able suppliers can add to a company's arsenal of capabilities and contribute to better strategy execution.
• D)The real debate surrounding outsourcing is not about whether too much outsourcing risks loss of control but about how to use outsourcing in a manner that produces greater competitiveness.
• E)Outsourcing can enable a company to heighten its strategic focus and concentrate its full energies and resources on even more competently performing those value chain activities that are at the core of its strategy and for which it can create unique value.

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Definitions:

Political Sociologists

study the relationship between society and politics, analyzing how social structures, institutions, and cultural norms influence political behavior and governance.

Weber's Types

Max Weber's classification systems in sociology, such as his types of authority: traditional, charismatic, and legal-rational.

Authority

The power or right to make decisions, judge, or enforce obedience within a particular area of expertise or jurisdiction.

Political Democracy

A form of government where the population exercises power directly or through elected officials in a free and fair electoral system.