Outsourcing Stratergy SC ABC

8/18/2019 Outsourcing Stratergy SC ABC

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1.

ABC Company is at a crossroads; the flux capacitor, an integral componentof their new product requires production volumes and quality levels thatthey have had difficulty achieving in the past. If they choose to purchasethe flux capacitors from another company rather than continue to makethem, then they have outsourced production.

Your Answer: alse

Correct Answer: !rue

I"C#$$%C!. &urchasing inputs from another company constitutesoutsourcing.

2.

A firm should outsource core competencies so they can focus improvementefforts on processes they haven't mastered.

Your Answer: !rue

Correct Answer: alse

I"C#$$%C!. Core competencies should never (e outsourced.

3.

In the area of glo(al operations, the term China price means )the lowestprice possi(le).

Your Answer: alse


I"C#$$%C!. China's wages are a(out *+ of .-. wages; the price toperform most (asic production tasks is at a (are minimum in China.


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4.

In a recent survey of executives from over * ma/or corporations, the topreasons for outsourcing were cost savings, gaining outside expertise, andimproving services.

Your Answer: alse


I"C#$$%C!. It is reasona(le to purchase goods and services if they can (eprovided more cheaply at a compara(le or higher level of quality than youcan accomplish internally.

5.

0ost .-. /o(s that are outsourced are outsourced offshore.

Your Answer: !rue


I"C#$$%C!. 1ery few of the outsourced .-. /o(s are actually offshored.

6.

!he nited -tates receives more outsourcing (usiness from othercountries than it outsources.

Your Answer: alse


I"C#$$%C!. $ecent figures indicate that the .-. export of services was2*3 (illion more than .-. imports of services.

7.

Nearshoring is the term for the return of a (usiness activity to the clientfirm.


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Your Answer: !rue


I"C#$$%C!. "earshoring is the choice of an outsource provider in thehome country or in a near(y country. Backshoring is the return of a(usiness activity to the client firm.

8.

#ne hidden advantage of outsourcing is increased control for the clientfirm.

Your Answer: !rue


I"C#$$%C!. !he client firm runs a risk of loss of control of the outsourcedfunction.

9.

!he outsourcing client en/oys the (enefit of ceasing to track or measurethe outsourced service; this (urden lies solely with the outsourcingprovider.

Your Answer: !rue


I"C#$$%C!. -atisfactory performance must (e ensured even though the

service is no longer provided in4house.

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#ver 5+ of everything produced in China is sold at 6al 0art.


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. Your Answer: !rue


I"C#$$%C!. #ver 5+ of everything that China sends to the .-. is soldat 6al 0art.

!he form (elow can (e used to email these results to up to four different email addresses.

Outsourcing Stratergy SC ABC

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