In conducting a value chain analysis, a manager at a small manufacturing firm looks at a particular department within the company and sees that its activities are proprietary to the company's yet common across the industry. In this case, the manager would:
A)Definitely work toward outsourcing this activity.
B)Definitely work toward keeping this activity in-house.
C) Want to consider outsourcing this activity, sell the unit involved, or lease the unit's services to other firms.
D) Try to make the activity less proprietary.

Question

In conducting a value chain analysis, a manager at a small manufacturing firm looks at a particular department within the company and sees that its activities are proprietary to the company's yet common across the industry. In this case, the manager would:
A)​Definitely work toward outsourcing this activity.
B)​Definitely work toward keeping this activity in-house.
C) ​Want to consider outsourcing this activity, sell the unit involved, or lease the unit's services to other firms.
D) ​Try to make the activity less proprietary.

Quizplus · Accepted Answer

Since the activity is proprietary to the company, keeping it in-house could be a competitive advantage. However, since it is also common across the industry, it may not be a core competency that differentiates the company from competitors. Therefore, the manager should consider outsourcing, selling, or leasing the unit's services to other firms as a potential cost-saving strategy. They could also focus on developing other core competencies that bring more value to the customers.

In Conducting a Value Chain Analysis, a Manager at a Small