Exam 14: Outsourcing as a Supply-Chain Strategy

Which of the following are possible outsourcing risks? I. Incorrectly identifying a core competency as non-core II. Setting savings goals too high III. Inability to control product development, quality IV. Non-responsive provider V. Currency fluctuations

Outsourcing has expanded to become a major strategy in business due to the continuing move toward specialization in an increasingly technological society.

The decline in customer satisfaction for outsourced call centers highlights which aspect of outsourcing risk?

Nearshoring is the practice of choosing an outsource provider in the home country or in a nearby country.

Which country should a firm choose for production using a weighted factor method if high scores indicate high risk? Currency Logistics Country Labor (W=5) (W=3) Quality (W=7) (W=2) Canada 10 9 6 4 Singapore 7 7 5 9 Mexico 8 5 7 9

Nearsourcing helps compromise a company's desire for __________ while still providing some __________.

Two firms that are being considered for an outsourced job have equal un-weighted factor method scores. Suppose that the ratings for each firm are identical except in two categories, currency and cost risk with high numbers representing low risk. The weight factor for currency risk is three times that of cost risk. Firm 1's score for currency is a 2 and Firm 2's score for cost is a 5. If firm 1 and 2 have identical cumulative scores with the weighted method, find Firm 1's cost score and Firm 2's currency score.

The reason behind most outsourcing failures is

Outsourcing manufacturing is also known as

What theory states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?

An organization's unique skills, talents, and capabilities are referred to as its __________.

Identify some business processes that are outsourced.

__________ is the number-one reason driving outsourcing for many firms.

The practice of choosing an external provider in the home country or in a nearby country is referred to as

Identify three factors fueling the continuing growth of outsourcing.

Research data suggest that foreigners outsource far fewer services to the U.S. than American companies send abroad.

A manufacturing plant is considering outsourcing its production of tires. There are 5 risk areas in which the decision will be based. The current plant had scores of 1, 2, 4, 8, 2 while the outsourced plant had scores of 3, 2, 4, 2, 5. What is the current plant's score if high scores indicate low risk and an unweighted factor method is applied?

Which of the following is the number-one reason driving outsourcing for many firms?

Some business activities, such as human resources and legal processes, cannot be outsourced.

Offshoring is the practice of moving a business process to a foreign country but retaining control of it.