When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n)?
A) Dependent manufacturer
B) Allied manufacturer
C) Contract manufacturer
D) Conscripted manufacturer

Question

Quizplus · Accepted Answer

When a firm does not possess the core competencies required for manufacturing certain products, it may opt for contract manufacturing, which involves outsourcing the manufacturing process to another company that specializes in the production of those products. This allows the firm to focus on its core competencies, while still producing the necessary products. The other options - dependent manufacturer, allied manufacturer, and conscripted manufacturer - do not accurately describe the outsourcing process.

When a Firm Does Not Have Core Competencies in an Area