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

question 40

Multiple Choice

Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense 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 those activities that are at the center of its expertise (its core competencies) and that are most critical to its competitive and financial success.
• C) outsourcing won't adversely hollow out the company's technical know-how, competencies, or capabilities.
• D) it reduces the company's risk exposure to changing technology and/or changing buyer preferences.
• E) All of these.

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Definitions:

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