Question

"Fun Play Global Sourcing (Scenario)

Fun Play Inc., a company manufacturing toys for children, has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist its managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the outsourced activities should be located.

Which of the following is most likely to be the consultants' utmost concern while deciding if clothing for Fun Play dolls needs to be outsourced?

A) Is doll clothing part of Fun Play's core competencies?
B) What kind of fabric is used for clothing Fun Play dolls?
C) Do the competitors of Fun Play outsource accounting activities abroad?
D) Does Fun Play intend to follow a strategy of product diversification in the near future?"

Answer 1

The consultants' utmost concern while deciding if clothing for Fun Play dolls needs to be outsourced would most likely be whether doll clothing is part of Fun Play's core competencies.

Step-by-step explanation:

The consultants' utmost concern while deciding if clothing for Fun Play dolls needs to be outsourced would most likely be whether doll clothing is part of Fun Play's core competencies. Outsourcing activities that are not part of a company's core competencies allows the company to focus on what it does best, while potentially reducing costs and increasing efficiency.