Exam 7: Vertical Integration and Outsourcing

The sequence of all activities that are performed by a firm to turn raw materials into a finished product that is sold to a buyer best describes the term _____.

Briefly state the difference between outsourcing and insourcing.

A car has to go through several different levels of manufacturing processes before it can be painted.The painting process cannot be initiated until a car is externally assembled and then inspected.This type of interdependence can be best termed as _____.

In the context of coordination,what is modular interdependence?

Having more flexibility,or being less vertically integrated,is more valuable when:

Which of the following scenarios illustrates the concept of outsourcing?

In this context of the three Cs of vertical integration,which of the following scenarios accurately depicts capabilities?

The process where a firm contracts out a business process or activity to an external supplier is known as _____.

In the context of the primary reasons for vertical integration in companies,which of the following statements is true of coordination?

Which of the following scenarios supports the view that a company should engage in outsourcing?

Which of the following scenarios best illustrates the concept of vertical integration?

As a danger of vertical integration,a(n)_____ refers to the fact that the more different types of activities a firm needs to manage,the harder it is to be world class in all of those activities.

Adia,the chief executive officer (CEO)of Touch Works Corp.,believes that outsourcing would be a disadvantage to her company.She states that she would not be able to control the finances and assets of her company if work gets outsourced.Which of the following statements strengthens Adia's belief?

Vertical integration can be best defined as:

Yellow Express LLC is a company in the computer hardware industry that solely manufactures microchips.Yellow Express LLC is _____.

A production house called Script Creations Inc.initiated a strategy for making its next movie.It invited a mass of people to create short documentaries on a social theme.As per the terms and conditions,Script Creations would select top three short stories to create an overall complete movie.This initiation by Script Creations Inc.is an example of _____.

What are the dangers of vertical integration?

What are the disadvantages to outsourcing?

Violet Inc.has been undertaking a lot of responsibilities as a company in order to be the best in its industry.Over time,however,these responsibilities become tough to handle and the company finds it difficult to efficiently manage the time and effort to perform its activities.In contrast,other firms in the industry that outsource some of their activities to smaller companies find it easier to generate more profit than Violet Inc.The situation faced by Violet Inc.in this example illustrates one of the important disadvantages of vertical integration that is _____.

Green Solutions Corp.is a washing machine manufacturing company.When it initially started out,it had held contracts with a supplier who provided the company with finished washing machine parts.However,Green Solutions later started manufacturing the parts by itself and assembling its products within the company without having to seek supplier intervention.This scenario best exemplifies _____.