Critics of Companies That Use Outsourcing Contend That Shifting Responsibility

question 113

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 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:

Seismic Waves

Waves of energy that travel through the Earth's crust, caused by earthquakes, volcanic eruptions, or other seismic events.

Moving Magma

The flow of molten rock beneath or on the Earth’s surface, which can create volcanic eruptions when it reaches the surface.

Indonesian Earthquake

A seismic event occurring in Indonesia, a region prone to earthquakes due to its position on the Pacific Ring of Fire.

Indian Ocean

The world's third-largest ocean, bounded by Asia, Africa, and Australia, known for its significant impact on climate and weather patterns.