148k views
1 vote
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.

1 Answer

5 votes

Final answer:

A firm that outsources aspects of its value chain and engages in alliances is using a hybrid of organizational types to leverage globalization for cost savings, quality improvements, and market expansion.

Step-by-step explanation:

When a firm outsources parts of its value chain to reduce costs and increase quality, and simultaneously engages in multiple alliances to penetrate new markets, this approach is an example of a firm using a hybrid of organizational types. This business strategy involves leveraging various aspects of globalization, such as specialized production processes and international collaboration.

By outsourcing, companies can focus on their core competencies and delegate other parts of the production process to external entities that could perform those tasks more efficiently or at a lower cost, often taking advantage of international trade dynamics. Additionally, forming alliances allows firms to access new customer bases, share the risks and costs associated with entering new markets, and capitalize on the local expertise of their partners.

User Derek Kaknes
by
8.6k points