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No need to explain. Just pick the correct answer 17 - In principle, every value-

ID: 1142850 • Letter: N

Question

No need to explain. Just pick the correct answer

17 - In principle, every value-adding activity in a firm is a candidate for outsourcing. However, which activities can be effectively outsourced depend on a host of factors, most predominantly among them is the company's _________________.

A - dfs

B - core competency or value discipline

C - kjdk

D - sdf

18 - Keurig Green Mountain, the troubled US maker of K-cup coffee pods and the machines that brew them, is being bought for $13.9billion by the same Luxembourg-based private equity firm that earlier this year purchased hipster coffee roasters Stumptown and Intelligentsia Coffee. “Keurig Green Mountain represents a major step forward in the creation of our global coffee platform,” JAB chairman Bart Becht said in a statement.

JAB, which as of December 2014 managed $16 billion in assets, belong to an Austrian family, also owns Peet’s, a Bay Area-based roaster and coffee-shop chain, through which it bought Stumptown and Intelligentsia in October. It also owns Minnesota-based Caribou Coffee.

JAB’s goal is to be the Budweiser of coffee, said Pablo Zuanic, an analyst at Susquehanna International. The conglomerate may follow with other deals, such as a takeover of Dunkin’ Brands Group. “JAB knows what they are doing, and this is obviously part of a much, much bigger strategy,” Zuanic said on a conference call, according to Bloomberg News. “Just like you’ve seen Anheuser-Busch InBev consolidate beer, they want to consolidate coffee.”

This is an example of ...

A - JAB entering into multiple licensing agreements.

B - JAB engaging in FDI though greenfields opeariong

C - JAB implementing business process outsourcing

D - JAB engagin in FDI through acquisition

19 - Dyson is well known for investing tons of time and energy into developing products that outperform competitors by a huge margin. You probably already know Dyson as the manufacturer of high-end household appliances, like bagless, cordless and handheld vacuum cleaners, air purifiers, humidifiers, and bladeless, air multipliers fans, all with powerful motors. Just last year, the company opened an $80 million manufacturing facility in West Park, Singapore, so Dyson could produce the motors privately and in mass. The 45,000-square-foot facility is outfitted with 50 robots that cranked out around 16 million motors in 2015. While most other motors spin at around 25,000 rpm, Dyson’s spin at 120,000 rpm.

But now the company is aiming to corner a new market: the hair industry, with the introduction of the hair dryer “supersonic”. What really makes the product stand out is that it’s far smaller and far quieter than anything else on the market. Dysonh used its know how of airflows and motors to build the new dryer.

The advancement took four years and $71 million to create, and is powered by a V9 digital motor (created in-house by a team of 15 engineers), which is Dyson’s smallest and lightest yet, and the company's patented Air Multiplier technology, used also by Dyson’s fans, heaters and air purifiers which increases the volume of the air drawn into the motor by a factor of three producing a high pressure, high velocity jet of air.

The motor has 13 blades, each 27mm wide, that rotate at up to 110,000 revolutions a minute at a frequency that's inaudible to humans. It is up to eight times faster than other hairdryer motors and half the weight.

The new product has been four years in the making, 600 prototypes were built, testing more than 1,600 kilometres of hair in a new dedicated $96 million research facility in England run by 103 engineers. "At Dyson, we develop products to solve problems. It isn't about making a quick buck," said the inventor and entrepreneur. He collaborated with hair-styling expert Akin Konizi to create the dryer, and engineers went to hair styling classes to better understand the science of hair. The Dyson hair dryer is available on Dyson’s website, Amazon and Sephora to name a few outlets where you get buy it for $399

Which of the following statements makes more sense for Dyson given the value discipline they are in.

A - Dyson should go into a joint venture with another tech company in order to minimize risk and gain more knowledge of the business.

B - Dyson should sell the new hair dryers through a licensing agreement with a Chinese or Indian company in order to bring down the price and make it more affordable.

C - Since their premium products are highly differentiated, and of such high quality, Dyson should perhaps consider opening their own greenfield stores to sell directly to customers, kind of like an Apple store.

D - Dyson should acquire Sephora and Amazon so they can sell even more products.

Explanation / Answer

17. In principle, every value-adding activity in a firm is a candidate for outsourcing. However, which activities can be effectively outsourced depend on a host of factors; most predominantly among them is the company's core competency or value discipline. So the correct option is B.

18. This is an example of AB engagin in FDI through acquisition. So the correct option is D.

19. Dyson should go into a joint venture with another tech company in order to minimize risk and gain more knowledge of the business makes more sense for Dyson given the value discipline they are in. So the correct answer is A.

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