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 would most likely be considered by the consultants while deciding whether to keep each value-adding activity in the home country or locate it in a foreign country?

A) Who will be responsible for training suppliers in foreign locations?
B) Can different value-adding activities be effectively configured across the world?
C) Would the HR department of Fun Play be able to ensure smooth repatriation for managers after they complete their assignments abroad?
D) What are the odds in favor of Fun Play's dominating the children's toy segment in its home country?"

Answer 1

Consultants would consider the configuration of value-adding activities, training of suppliers, and smooth repatriation of managers when deciding whether to keep activities in the home country or locate them in a foreign country.

Step-by-step explanation:

When deciding whether to keep each value-adding activity in the home country or locate it in a foreign country, consultants would consider factors such as:

1. Can different value-adding activities be effectively configured across the world? This refers to the compatibility of different activities in different locations and whether they can work together efficiently.
2. Who will be responsible for training suppliers in foreign locations? This addresses the need for training and ensuring that suppliers in foreign locations can meet the required standards.
3. Would the HR department of Fun Play be able to ensure smooth repatriation for managers after they complete their assignments abroad? This considers the ability of the HR department to handle the process of bringing managers back to their home country after completing assignments abroad.