Which One of the Following Statements About Outsourcing the Performance

question 20

Multiple Choice

Which one of the following statements about outsourcing the performance of value chain activities to outside specialists is false?

• A) Outsourcing support services often has cost-saving benefits but outsourcing primary value chain activities has the disadvantages of raising fixed costs,reducing variable costs,and making it harder to develop distinctive competencies.
• 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 outsider 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:

Direct Costs

Expenses that can be directly tied to the production of specific goods or services, such as raw materials and labor directly involved in manufacturing.

Management Process

The series of actions and strategies that managers use to achieve organizational goals, including planning, organizing, leading, and controlling.

Objectives and Goals

Objectives and Goals refer to specific outcomes or achievements that an organization or individual aims to accomplish within a certain timeframe.

Planning

The process of setting objectives, developing strategies to achieve them, and delineating tasks and scheduling to implement the strategies.