University of Houston MBA 6205 Chapter 9: Core Competencies and Outsourcing Multiple Choice 1)_is the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies

Question

University of Houston

MBA 6205

Chapter 9: Core Competencies and Outsourcing

Multiple Choice

1)_is the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.

1. innovative constraint

1. second tier competency

1. corporate skill

1. core competency

All except one of the following are key questions for identifying core competencies:

Does the identified skill set contribute significantly to what the customer perceives as the organization’s value-added?
Does the business derive most of its revenue based on products or services that exhibit the core competency?
Is the business particularly good as the skill set?
Is the skill set broad enough that it allows the opportunity to enter many diverse markets or businesses?

is the process of moving an aspect of production, service, or business function from within an organization to an outside supplier.

Insourcing

Outsourcing

Make-or-buy

Supply chain collaboration

The term “privatization” with regard to supply chain management refers to when .

a government or a public agency chooses to outsource
a government or a public agency chooses to insource
a government agency chooses to outsource
a public agency chooses to outsource

All of the following are business examples of outsourcing except .
1. 3PL
2. vertical integration

1. offshoring

1. contract manufacturing

3PL involves using a supplier to provide services. U) marketing

design

logistics

contract manufacturing

Outsourcing products or services to a different country is referred to as .

third party services
offloading O) offshoring

P) logistics

The decision to insource or outsource is referred to as a (an) .

offshore decision
make-or-buy decision
business decision
contract manufacturing

9 The following lists the most significant reasons for outsourcing except .

1. reduce operating costs
2. creates a variable cost structure
3. improve skills
4. limited manufacturing capacity

Identify from the following list a major strategic risk associated with outsourcing. U) outsourcing landed cost is usually higher than insourcing cost
1. the business looses sight of market trends

1. supplier is purchased by a competitor

1. cost of supplied material is passed on to the customer

All of the following are phases of a quality outsourcing process except .

conduct an outsourcing analysis

establish and manage the outsourcing relationship W) establish the mission: generate and screen ideas

X) obtain agreement of the design/development team

The definition of a total cost of ownership is the direct cost of .

materials, labor, overhead, and inventory
materials, labor and overhead
materials, labor, and energy
materials, labor, energy, overhead, transportation, inventory, quality, obsolescence and capital

Potential outsourcing decisions must always be analyzed from a perspective and not only from the perspective of whether the organization will reduce its costs.

purchasing

management

tactical.

strategic

Buyers involved in outsourcing need to develop a different skill set, directed more at

the supplier and maintaining the relationship rather than contractual compliance.

monitoring
involving
managing D) visiting

Companies may decide to insource previously outsourced activities based on the dynamics of the market and their strategy.

supplier

competitive

financial

global

Analyzing outsourcing versus retaining an activity internally is often referred to as the

decision.

offshoring
purchasing
buy
make-or-buy

The new skill set required by purchasing agents in support of outsourcing includes all of the following except .

improving communication with the supplier
developing metrics for soft performance issues
listening to the supplier’s concerns

D) contract management and negotiation skills

Ongoing evaluation and are important to keep an outsourcing arrangement on track, and stay in tune with the organization’s changing needs.

management

feedback

audit

arms length relationship

supply involves having one or a handful of distributors handle all of the items, rather than ordering from a huge number of manufacturers or small distributors.

Outsourced

Integrated

Insourced X) Global

When a firm wants to outsource but cannot find a qualified supplier, it may engage in , the process of recruiting a supplier to provide an item or service.

1. outsourcing
2. BPO
3. reverse marketing
4. 3PL

TRUE/FALSE

The concept of core competencies is applicable to the service sector as well as the manufacturing sector.

Core competencies are not based on one simple factor, but how a whole host of decisions and internal competencies work together to provide products and services customers value.

Outsourcing is no longer growing in importance and incidence every day.

Insourcing is the process of moving an aspect of production, service, or business function from within an organization to an outside supplier.

Firms may outsource activities that they feel are not core competencies.

When the government or a public agency chooses to outsource, it is called privatization.

Contract manufacturing involves a third party that makes an end product or major components under another company’s brand.

Third-party logistics involves using a supplier to provide some combination of logistics activities such as transportation, warehousing, procurement, manufacturing, inventory management, and customer service.

Offshoring is another name for outsourcing within the same country.

Companies outsource to conserve capital, reduce operating costs and to focus on the core business.

Assuming the business outsource a strategic activity, is it possible to lose your position in the market?

Tactical risk is a long-term, perhaps irreversible, risk that may occur as a company loses the knowledge it once had related to its core activities.

Strategic risks are short-term risks that occur when an organization relies on a supplier for capacity, but not necessarily knowledge.

Some managers believe that the strategic risk of making a bad outsourcing decision is so high that it can make or break a company.

Reverse marketing is the process of recruiting a supplier to provide an item or service.

There are many potential risks associated with outsourcing that need to be identified and investigated both in the feasibility phase of outsourcing and during the make-or-buy analysis phase.

When identifying outsourcing risks, organizations should conduct a total cost of ownership analysis on the project, and only if time permits a sensitivity analysis.

Determining the right type of outsourcing arrangement and management oversight is critical to the success of the outsource relationship.

Buyers involved in outsourcing need to develop a different skill set, directed more at monitoring the supplier and maintaining the relationship rather than directing their activity.

Companies may decide to insource previously outsourced activities based on the dynamics of the market and their competitive strategy.

Potential outsourcing decisions must always be analyzed from a strategic perspective, not only from the perspective of whether the organization will reduce its costs.