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Specify the three core questions that need to be addressed in terms of sourcing of system capabilities.

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Final answer:

In sourcing system capabilities, the three core questions are: what kinds of goods and services are needed, what and how goods will be produced, and for whom they will be produced. These questions guide the understanding of market demands, production processes, and distribution strategies.

Step-by-step explanation:

When considering the sourcing of system capabilities, it is essential to address three core questions to understand the needs and objectives.

  • The first question to contemplate is what kinds of goods and services are required to meet people's needs and wants. This involves a comprehensive analysis of market demands and the specific requirements of the target audience.
  • Secondly, it is crucial to determine what goods will be produced, and this involves decisions on the variety and quality of goods and services that would satisfy the identified needs. Coupled with this is the consideration of how these goods will be produced, which refers to the methods and technology required for efficient production processes.
  • The third core question revolves around for whom will these goods be produced. This targets the allocation of the produced goods and services and involves understanding the distribution channels and target consumers. It helps in crafting a strategic plan for reaching the end-users who will benefit from the system capabilities sourced.
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