The document discusses outsourcing strategies for organizations. It provides context on Cunningham Motors, which plans to outsource all activities in its value chain for producing luxury racing cars. Three key points:
1) Outsourcing all activities is an "extreme" strategy that could succeed if modularity, contracts, and flexibility for uncertainty are established.
2) Organizations outsource for cost minimization, accessing specialized competencies, leveraging resources, and diversifying risk.
3) While outsourcing provides benefits, it also introduces transaction costs, production costs, knowledge risks, and supply shock vulnerabilities that require strategic management.
Man org session 8 org conflict power and politics 19th july 2012
Man org session 11 interorganizational relationships_2nd august 2012
1. MANAGING ORGANIZATIONS
Session 11:
Inter -Organizational Relationships
Sourav Mukherji
PGP 2012-14 Section C & E
Associate Professor of Organization & Strategy
Term 1:June-September 2012 Indian Institute of Management Bangalore, India