MGMT 100 Lecture Notes - Lecture 3: Absolute Advantage, Telemarketing, Outsourcing
Document Summary
Outsourcing: when you pay another company to do something for your company, example telemarketing, manufacturers, processors. Value chain & web: the chain of processing that is including in the manufacturing of ones product, or, the web of processing that is more complex, and involved more processing. Advantages: comparative advantage, when one business is better at producing one product, is complicated, absolute advantage, when one business is better at producing both products, is simplistic. Indian software businesses: often, the standard of product is lower as its to a different spec, savings don"t exist in offshoring as slight changes (changing the spec) cost more money, and take more time. What can"t be off-shored: education (primary teachers), government interventions, emergency services, medical (hospitals), public services, courts, delivery, transport, tourism, restaurants, supermarkets, utilities, construction, infrastructure, plumbing, electrical, farming, mining, cleaning.
