Quinn-Strategic Outsourcing (1)

Strategic questions 1 do we really want to produce

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strategic questions: 1. Do we really want to produce the good or service in-ternally in the long run? If we do, are we willing to 2. Can we license technology or buy know-how that will let us be best on a continuing basis? If not, 3. Can we buy the item as an off-the-shelf product or service from a best-in-world supplier? Is this a viable long-term option as volume and complexity grow? If 4. Can we establish a joint development project with a knowledgeable supplier that ultimately will give us the capability to be best at this activity? If not, 5. Can we enter into a long-term development or pur-chase agreement that gives us a secure source of supply and a proprietary interest in knowledge or other proper-ty of vital interest to us and the supplier? If not, 6. Can we acquire and manage a best-in-world supplier to advantage? If not, can we set up a joint venture or partnership that avoids the shortcomings we see in each of the above? If so, 7. Can we establish controls and incentives that reduce total transaction costs below those of producing inter-nally?
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ners, volume partners are expect- ed to handle most surges in vol- ume themselves. nents, and subassemblies. In Nike's third tier, some of the more spe- cialized and technical compo- nents are made in supplier com- panies that Nike totally controls - i.e., for some of its patented features like the Nike Airsole.
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  • Spring '13
  • Null
  • Management, MIT Sloan School of Management, Massachusetts Institute of Technology, Learning Company, Sloan School of Management

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