Outsourcing Critics Contend That Shifting Responsibility for Performing Value Chain

question 92

Multiple Choice

Outsourcing critics 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 outsider 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:

Mortgage Interest Rates

The cost of borrowing money expressed as a percentage of the total amount of the loan, applied to mortgages.

NSF Charges

Non-Sufficient Funds (NSF) charges are fees charged when a transaction is attempted on an account without adequate funds to cover it.

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Refers to the entitlements granted by legal systems or societal norms to individuals or entities, encompassing freedoms, privileges, and protections under law.

Clearing

The process of reconciling purchases and sales of various options, futures, or securities, as well as the direct transfer of funds from one financial institution to another.