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

question 20

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 on its core business and leverage its key resources.
• C) outsourcing won't adversely hollow out the company's technical know-how,competencies,or capabilities while it improves organizational flexibility and speeds time to market.
• D) it improves organizational flexibility and speeds time to market.
• E) All of these.

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Definitions:

Teletype Machines

Early communication devices used to send typed messages over long distances through telecommunication lines.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price, often used by investors to gauge the income a company's stock will generate.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually as cash or additional shares, as a reward for their investment in the company's equity.