Operations managers at Dragon Industries Inc. agree that the company is trying to handle too many supply chain functions on its own resulting in an inefficient use of resources. This suggests that the company may soon adopt the strategy of:
A) acquisition.
B) outsourcing processes.
C) vertical integration.
D) cannibalization.

Question

Quizplus · Accepted Answer

The company's recognition of inefficiencies in handling too many supply chain functions suggests that outsourcing such processes to external companies may offer a solution to streamline operations and achieve better resource allocation. Acquiring another company or engaging in vertical integration may not address the current inefficiencies in the company's supply chain. Cannibalization, which refers to a company's introduction of a new product that reduces sales of its existing products, is not related to this situation.

Operations Managers at Dragon Industries Inc