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.

---

Definitions:

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, organized into two opposing military alliances: the Allies and the Axis.

Recessions

Instances of provisional economic weakness where both trading and industrial activities fall off, universally determined by a two-quarter continuous drop in GDP.

General Merchandise

A category of goods that includes a wide range of products from apparel to home goods sold by retailers.

Discount Stores

are retail outlets that sell products at prices lower than those asked by traditional retail stores, often by selling in large volumes or foregoing some aspects of service.