Deck 9: Core Competencies and Outsourcing

Question 1

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.

A) outsourcing
B) BPO
C) reverse marketing
D) 3PL

Answer 1

reverse marketing

Question 2

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.

Answer 2

True

Question 3

3PL involves using a supplier to provide ________ services.

A) marketing
B) design
C) logistics
D) contract manufacturing

Answer 3

logistics

Question 4

_________ 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.

A) Outsourced
B) Integrated
C) Insourced
D) Global

Question 5

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

A) supplier
B) competitive
C) financial
D) global

Question 6

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

A) third party services
B) offloading
C) offshoring
D) logistics

Question 7

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

A) purchasing
B) management
C) tactical.
D) strategic

Question 8

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

A) management
B) feedback
C) audit
D) arms length relationship

Question 9

Identify from the following list a major strategic risk associated with outsourcing.

A) outsourcing landed cost is usually higher than insourcing cost
B) the business looses sight of market trends
C) supplier is purchased by a competitor
D) cost of supplied material is passed on to the customer

Question 10

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

A) Insourcing
B) Outsourcing
C) Make-or-buy
D) Supply chain collaboration

Question 11

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

Question 12

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

Question 13

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

A) innovative constraint
B) second tier competency
C) corporate skill
D) core competency

Question 14

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

Question 15

The term "privatization" with regard to supply chain management refers to when ________.

A) a government or a public agency chooses to outsource
B) a government or a public agency chooses to insource
C) a government agency chooses to outsource
D) a public agency chooses to outsource

Question 16

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

Question 17

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

Question 18

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

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

Question 19

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

Question 20

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

A) conduct an outsourcing analysis
B) establish and manage the outsourcing relationship
C) establish the mission: generate and screen ideas
D) obtain agreement of the design/development team

Question 21

Fill in the Blank(s)
Activities that are integral to the organization's core competencies should not be .

Question 22

TCO in context of supply chain management is an acronym for Total Cost of Outsourcing.

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

Analyzing outsourcing versus retaining an activity internally is often referred to as the "make-or-buy" decision.

Question 29

Outsourcing manufacturing, services, or business processes follow the same distinct phases of the outsourcing process.

Question 30

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.

Question 31

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

Question 32

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

Question 33

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

Question 34

Fill in the Blank(s)
Potential outsourcing decisions must always be analyzed from a perspective, not only from the perspective of whether the organization will reduce its costs.

Question 35

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.

Question 36

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.

Question 37

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

Question 38

Outsourcing can be a value-enhancing activity.

Question 39

Offshoring is another name for outsourcing within the same country.

Question 40

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

Question 41

Fill in the Blank(s)
A analysis considers all direct costs and hidden costs to the extent that these costs are incrementally related to the outsourcing decision.

Question 42

Fill in the Blank(s)
is another name for outsourcing to a different country.

Question 43

Fill in the Blank(s)
The concept of core competencies is certainly applicable to the manufacturing as well as the sector.

Question 44

Fill in the Blank(s)
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.

Question 45

Fill in the Blank(s)
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.

Question 46

Fill in the Blank(s)
analysis should also be performed in conjunction with TCO analysis.

Question 47

Fill in the Blank(s)
When the government or a public agency chooses to outsource, it is called .

Question 48

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

Question 49

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The desire to achieve lower costs is one of the primary drivers of .

Question 50

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There are three types of supplier relationships and associated management methods recommended for the purchasing agent. They are the relationship, the niche provider, and the hybrid.

Question 51

Fill in the Blank(s)
teams should manage the outsourcing process.

Question 52

Fill in the Blank(s)
is the process of moving an aspect of production, service, or business function from within an organization to an outside supplier.

Question 53

Fill in the Blank(s)
outsourcing (BPO) includes everything from logistics to human resource management, payroll processing, purchasing, marketing, sales, accounting, administration, and information technology.

Question 54

Fill in the Blank(s)
logistics involves using a supplier to provide some combination of logistics activities such as transportation, warehousing, procurement, manufacturing, inventory management, and customer service.

Question 55

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

Question 56

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A company analyzing potential activities for outsourcing must take care not to outsource areas of .

Question 57

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competencies are based on combinations of attributes or skill sets that give an organization a unique advantage over its competitors.

Question 58

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Outsourcing deals with procedures and processes that are less clearly defined than traditional buying. Those who are managing outsource providers may need additional in order to be successful.

Question 59

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Whether you are considering , services, or business processes, the outsourcing process should include three major phases:
a. Establish the mission; generate and screen ideas.
b. Conduct an outsourcing analysis.
c. Establish and manage the outsourcing relationship.

Question 60

Fill in the Blank(s)
manufacturing involves a third party that makes an end product or major components under another company's brand.

Question 61

Fill in the Blank(s)
Outsourcing decisions should be made with care because they can be and expensive to .

Question 62

Fill in the Blank(s)
When a firm wants to outsource but can find no qualified supplier, it may engage in , the process of recruiting a supplier to provide an item or service.