Question

Which of the following would be considered true about modular organizations? Check all that apply. They can consist of suppliers, specialists, or consultants. They are more expensive to run than traditional organizations. They allow companies to strengthen their competitive advantage. They allow for more control over key business activities when they are outsourced.

Answer 1

Modular organizations typically include suppliers, specialists, or consultants and can strengthen a company's competitive advantage. They are not inherently more expensive and can potentially reduce control over outsourced business activities.

Step-by-step explanation:

When examining modular organizations, there are certain traits that can be considered true. Modular organizations commonly:

• Consist of suppliers, specialists, or consultants.
• Allow companies to strengthen their competitive advantage by focusing on their core competencies and outsourcing other tasks.

On the other hand, modular organizations are not necessarily more expensive to run than traditional organizations—this varies depending on the context and implementation. Additionally, while outsourcing through a modular organization can increase flexibility and efficiency, it often results in less control over key business activities, as they are being handled by external parties.