Outsourcing the Performance of Value Chain Activities Presently Performed In-House

question 80

Multiple Choice

Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense EXCEPT when

• A) an activity can be performed better or more cheaply by outside specialists.
• B) it allows a company to focus its entire energies on its core business.
• C) it restricts a company's ability to assemble diverse kinds of expertise speedily and efficiently.
• D) it reduces the company's risk exposure to changing technology and/or changing buyer preferences.
• E) it allows a company to leverage its key resources.

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Definitions:

Brand Image Damage

The harm or negative impact on a company's reputation, often resulting from controversial incidents, poor customer experiences, or negative media coverage.

British Airways

A major international airline based in the United Kingdom, known for its global flight operations and extended network.

Core Competencies

Essential capabilities or advantages that a business has, which gives it a competitive edge over others in its industry.

Product Design

The process of creating a new product to be sold by a business to its customers, prioritizing functionality, appearance, and user experience.