Question

Network organization own only the ________and outsource ______

a. Essential core functions; the support functions

b. Information technology; actual production work

c. Essential core functions; all customer contacts

d. Intellectual property; the manufacturing of products

e. Support functions; core functions

Answer 1

option A) Essential core functions; the support functions

Every organization has some core activities which are the basis for the operations of the business. These activities are crucial because they contain business secrets, innovative processes etc. which gives them advantage over other firms. Losing such information can result in huge revenue loss. Therefore essential core functions are always owned and performed by organization. While the supporting activities, which helps in performing the core functions smoothly and efficiently are outsourced, as there is no threat to business secrets due to outsourcing and sometimes organizations are not capable enough to handle such activities with such proficiency and efficiency as the professionals.