Which of the following strategies would suit a firm activity that is both firm-specific and industry-specific?
A) Keep the activity in-house
B) Offshore the activity to a foreign supplier
C) Outsource the activity to a domestic firm
D) Set up a subsidiary in a foreign location to perform the activity

Question

Which of the following strategies would suit a firm activity that is both firm-specific and industry-specific? 
A) Keep the activity in-house 
B) Offshore the activity to a foreign supplier 
C) Outsource the activity to a domestic firm 
D) Set up a subsidiary in a foreign location to perform the activity

Quizplus · Accepted Answer

Keeping the activity in-house is the best strategy for a firm-specific and industry-specific activity as it allows the firm to maintain control over the activity and its quality. Offshoring the activity to a foreign supplier or outsourcing it to a domestic firm may not ensure the same level of industry-specific knowledge and expertise as an in-house team would have. Setting up a subsidiary in a foreign location can be expensive and may not be the best option unless the activity requires a significant global presence.

Which of the Following Strategies Would Suit a Firm Activity