In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:
In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:
In a make-or-buy decision, if the product is modular and the company is dependent on existing knowledge and capacity, outsourcing is often considered necessary. This is because the company might not have the required in-house resources or expertise to produce the modular product efficiently. Hence, outsourcing becomes a necessity to ensure that production meets capacity and quality standards, leveraging the external expertise and capabilities.
D. considered risky. In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing can be considered risky. By outsourcing, the company might lose control over crucial aspects of the production process, and potentially expose itself to the risk of losing valuable knowledge or intellectual property. Additionally, relying on external suppliers for critical components may make the company more vulnerable to supply chain disruptions.
Actually, integral products will be considered as risky as the core competency of the company will be lost and this will turn the company vulnerable in the business world. In this case the company can outsource the job as building inhouse would be expensive as they need to spend on knowledge , resources (labour , machines ) , manufacturing space etc..
considered necessary.
The company is DEPENDENT so it has to outsource without any other choice, then it is necessary.