MHR 849 Chapter Notes - Chapter 13: Transaction Time, Opportunity Cost, Headcount
25 Mar 2015
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Mhr because of the added simplicity (rogers don"t know how to make phones, just outsource to. Reasons for outsourcing: financial savings, cost reduction typically 10-20, 50% of firms believe their cost savings objectives have been met, economies of scale from specialized outsourcers who are more efficient. Don"t have to set it up themselves, just pay a fee. Good if irregular, variable, unpredictable use: strategic focus, er can"t pursue excellence in all areas, decide to focus on specific core competencies moving non-core to firms where it is a core. Mhr: core competencies: resources and capabilities ~> firm"s (current/potential) competitive advantage; distinguish a company competitively and reflect its personality. Traditionally performed internally, critical to firm"s bottom line/success, influence future growth/rejuvenation. Transformational and adds value to employees or customers. 4: sometimes service not improved (i. e. , b/c of language barriers), er can charge fee for not improving. Important in public sector, fewer civil servants on payroll, happier tax paying public.
