Outsourcing in Business

What is the primary goal of outsourcing in a business context?

• To reduce the quality of products

• To expand the company's physical presence

• To focus on core competencies

• To increase the number of employees

Which of the following is NOT a step in the outsourcing process?

• Monitoring and managing the relationship

• Developing clear contracts

• Hiring more in-house staff

• Identifying core versus non-core activities

Which company is mentioned as an example of successful outsourcing in customer support?

• Apple

• Microsoft

• IBM

• Amazon

What is a key factor in selecting the right outsourcing partner?

• Their location in the same city

• Their ability to increase your company's workforce

• Their ability to reduce your company's core activities

• Their expertise and reliability

How did Dell's outsourcing strategy impact the PC industry in the 1990s?

• It led to a decrease in customer satisfaction

• It revolutionized manufacturing and sales

• It slowed down the production process

• It increased the cost of PCs

What was a significant advantage of Dell's just-in-time inventory system?

• Higher inventory levels

• Slower response to market demands

• Reduced time and cost in delivering PCs

• Increased production costs

Which of the following is a benefit of outsourcing?

• Increased control over all business processes

• Increased internal resource constraints

• Access to specialized expertise

• Higher operational risks

Which of the following is NOT a benefit of outsourcing?

• Increased dependency on internal resources

• Focus on core competencies

• Cost savings

• Access to specialized expertise

What is a potential limitation of outsourcing?

• Improved communication

• Increased flexibility

• Enhanced security

• Loss of control over processes

What is a common communication challenge in outsourcing?

• Too much face-to-face interaction

• Excessive control over outsourced tasks

• Cultural differences and time zone discrepancies

• Lack of technology