If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets,this is an example of a firm using a ________ of organizational types.
A) combination
B) boundaryless consortium
C) bounded consortium
D) barrier-free collection

Question

Quizplus · Accepted Answer

Designing an organization that simultaneously supports the requirements of the organization strategy, is consistent with the demands of the environment, and can be effectively implemented by the people around the manager is a tall order for any manager. The most effective solution is usually a combination of organizational types. That is, a firm may outsource many parts of its value chain to reduce costs and increase quality, engage simultaneously in multiple alliances to take advantage of technological developments or penetrate new markets, and break down barriers within the organization to enhance flexibility.

If a Firm Outsources Some Parts of Its Value Chain