Fun Play Global Sourcing
The Fun Play Toy Company has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist Fun Play managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the activities should be located.
-The consulting firm might suggest which of the following if Fun Play managers express an interest in outsourcing doll eye production to Kongha Toy Parts, Ltd., which it owns in part?

Question

Fun Play Global Sourcing 
The Fun Play Toy Company has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist Fun Play managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the activities should be located.
-The consulting firm might suggest which of the following if Fun Play managers express an interest in outsourcing doll eye production to Kongha Toy Parts, Ltd., which it owns in part?

Quizplus · Accepted Answer

Captive sourcing refers to a situation where a company outsources a part of its business process or production to another company in which it owns a stake. Since Fun Play managers are considering outsourcing doll eye production to Kongha Toy Parts, Ltd., a company they own in part, this scenario fits the definition of captive sourcing.