Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Vernon, Inc., a small manufacturing company that has in recent years experienced a decline in its profits, plans to boost its profits by outsourcing those parts of its business that independent suppliers can provide at lower cost than Vernon can itself.
Which of the following, if true, most strongly supports the prediction that Vernon's plan will achieve its goal?
(A) Among the parts of its business that Vernon does not plan to outsource are some that require standards of accuracy too high for most independent suppliers to provide at lower cost than Vernon can.
(B) Vernon itself acts as an independent supplier of specialized hardware items to certain manufacturers that formerly made those items themselves.
(C) Relatively few manufacturers that start as independent suppliers have been able to expand their business and become direct competitors of the companies they once supplied.
(D) Vernon plans to select the independent suppliers it will use on the basis of submitted bids.
(E) Attending to certain tasks that Vernon performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Vernon's core business.
我徘徊在C和E C和E好像都对 啊 纠结啊作者: zhaoyiqing 时间: 2011-6-9 19:55
c。
你所说的E 说的 CORE OR NON CORE TASK,和outsource product无关。作者: heywendy 时间: 2011-6-10 06:27
I think the answer is E
The company's purpose is to boost its profit by decrease its cost
C is irrelevantWe all know that in the business world,there is no forever friend.Even though the outsourcing-company will become a director competitor,temporary coorperation is deserve.)The plan is just focus on company's RECENT situation.
E is correct:It points out that if the company implement the plan,the company can decrease OPPORTUNITY COST.作者: parispings 时间: 2011-6-13 19:29
For answer C, it describes what happened to those manufacturers which start as independent suppliers first, NOT the independent supplier itself. And the stimuli has never mentioned that independent supplier that the company is looking for will become a manufacturer in future. This is considered as a shell game answer. It secretly changed the subject of the discussion to a similar but totally different one to confuse you.
As for answer E, it can be logically assumed that when mgmt pays more attention to the core business, the profits generated from it could be increased and therefore it can boost the overall profit as well.作者: MarilynR 时间: 2011-6-14 20:03
you need an answer choice that shows that OUTSOURCING WILL BE MORE PROFITABLE THAN NOT OUTSOURCING.
the other four answer choices are completely irrelevant to the issue, which is the effect of outsourcing on profit.. choice (e),E is best- It shows a precise advantage of implementing the plan!
therefore, even though (e) requires additional assumptions, it's still the choice that "most strongly supports" the argument - because it's the only choice that even could support the argument.
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