SUPPLEMENT 11 - SUPPLEMENT 11: OUTSOURCING AS A SUPPLY...

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SUPPLEMENT 11: OUTSOURCING AS A SUPPLY CHAIN STRATEGY TRUE/FALSE 1. Some organizations use outsourcing to replace entire purchasing, information systems, marketing, finance, and operations departments. True (Introduction, moderate) 2. Offshoring is the practice of procuring from foreign external sources services or products that are normally part of an organization. False (What is outsourcing?, moderate) 3. Outsouring is the practice of procuring from external sources services or products that are normally part of an organization. True (What is outsourcing?, moderate) 4. Outsourcing is the practice of moving a business process to a foreign country but retaining control of it. False (What is outsourcing?, moderate) 5. Offshoring is the practice of moving a business process to a foreign country but retaining control of it. True (What is outsourcing?, moderate) 6. A firm that outsources its internal business activities is called the client firm. True (What is outsourcing?, moderate) 7. A firm that outsources its internal business activities is called the outsource provider. False (What is outsourcing?, moderate) 8. A firm that provides outsourcing activity is called the client firm. False (What is outsourcing?, moderate) 9. Outsourcing is not a new concept; it is simply an extension of the long-standing practice of subcontracting production activities. True (What is outsourcing?, moderate) 10. Outsourcing has expanded to become a major strategy in business due to the continuing move toward specialization in an increasingly technological society. True (What is outsourcing?, moderate) {AACSB: Use of IT} 11. Some business activities, such as human resources and legal processes, cannot be outsourced. False (What is outsourcing?, moderate) 12. Nearly any business activity can be outsourced. True (What is outsourcing?, moderate)
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13. An organization’s unique skills, talents, and capabilities are referred to as its core competencies. True (Strategic planning and core competencies, easy) 14. Core competencies are good candidates for outsourcing. False (Strategic planning and core competencies, easy) 15. The theory of competitive advantage 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. False (Strategic planning and core competencies, moderate) 16. The theory of comparative advantage 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. True (Strategic planning and core competencies, moderate) 17. The term “China price” has become the global benchmark—interchangeable with “lowest price possible.” True (Strategic planning and core competencies, moderate) {AACSB: Multiculture and Diversity} 18. The term “India price” has become the global benchmark—interchangeable with “lowest price possible.” False (Strategic planning and core competencies, moderate) {AACSB: Multiculture
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This note was uploaded on 10/16/2011 for the course MARKETING 1234s taught by Professor Mohammed during the Spring '11 term at Abu Dhabi University.

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SUPPLEMENT 11 - SUPPLEMENT 11: OUTSOURCING AS A SUPPLY...

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