Decisions a firm must make about whether to perform a certain value creation activity themselves, or outsource it to another entity are best known as:a.make-or-buy decisions.b.integration decisions.c.in-house potential decisions.d.outsource potential decisions.
Question
Decisions a firm must make about whether to perform a certain value creation activity themselves, or outsource it to another entity are best known as:a.make-or-buy decisions.b.integration decisions.c.in-house potential decisions.d.outsource potential decisions.
Solution
The correct answer is a. make-or-buy decisions.
Here's the step by step explanation:
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The question is asking about the type of decisions a firm makes when deciding whether to perform a certain value creation activity themselves or to outsource it to another entity.
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The options provided are: make-or-buy decisions, integration decisions, in-house potential decisions, and outsource potential decisions.
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Make-or-buy decisions are exactly what the question describes: a decision between making a product or performing a service in-house (make) or purchasing it from an external provider (buy).
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Integration decisions, while related, are more about the level of control a company wants to have over its supply chain and whether it wants to merge with or acquire other companies to achieve this.
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In-house potential decisions and outsource potential decisions are not standard terms used in business to describe this type of decision-making process.
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Therefore, the correct answer is a. make-or-buy decisions. This term accurately describes the decision process a firm goes through when deciding whether to perform a value creation activity themselves or outsource it.
Similar Questions
Outsourcing is a strategy that involvesMultiple choice question.conducting value chain operations in-house rather than relying on outside vendors.merging with or acquiring a company that specializes in an operation further up the value chain.contracting out certain value chain activities that are normally performed in-house to outside vendors.moving value chain activities from one division in the company to another.
Project managers must frequently decide whether to obtain needed products and services from internal sources or from external sources. This decision is often referred to as the make-or-buy decision. According to the learning material, what are the reasons that support the decision to “make” the products. Choose all that apply.Group of answer choicesStrategic Alignment and Core CompetenciesThe need for a customized itemLack of suitable suppliersProtection of Intellectual PropertyControl over Quality and StandardsLower production cost to create the product in-house
Companies that outsource strategically important operations run the risk ofMultiple choice question.assuming too much control over critical operations.reducing operating costs of the company that they partner with.weakening their ability to sustain their competitive advantage in areas vital to the company's success.reducing the capabilities of the company responsible for performing the outsourced activity.
The business activities that add high value to business operation and acts a differentiator in a firms' competitiveness while making decision regarding outsourcing is calleda.Necessary Evilsb.Order winnersc.Qualifiersd.Distractors
business decision making
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