Chapter 3 discusses outsourcing as one way to enhance value by increasing the focus on core competencies. Many companies exist to provide services and expertise to companies who wish to outsource various aspects of their business. MSX International is a dominant outsourcing firm in the automotive industry. The description of MSXI services provides an example of the business, engineering, and human capital services that can be outsourced.
a. From the perspective of adding value and focusing on core competencies, select one of MSX's services and describe the benefits it could offer a businesscustomer.
b. For the same service, what are the potential negative effects of outsourcing?
The ethical concerns of customers have become increasingly important for companies. As Chapter 3 describes, increased pressure applied by customers has resulted in increased policing by companies. The Levi-Strauss Sourcing Practices provide an example of how important ethical issues related to supplier working conditions has become.
a. What are the major components of Levi-Strauss guidelines?
b. How does Levi-Strauss enforce the guidelines?
The focus strategy discussed in Chapter 3 is exemplified by Coldwater Creek's strategy, which has gained it a reputation among catalog retailers. Coldwater Creek's website provides an example of the attention to service and excellence required to succeed with this strategy. Check out the company background information in "A little about the Creek" for information on a company that has a very specific focus
a. Who is the target market for Coldwater Creek?
b. For Coldwater Creek, what are the critical characteristics of those customers?
