As mentioned in E 6, Edward Ortez recently opened his own company. He has been t
ID: 2365772 • Letter: A
Question
As mentioned in E 6, Edward Ortez recently opened his own company. He has been thinking of ways to improve the business. Here is a list of the actions that he will be undertaking: 1. Engaging an accountant to help analyze progress in meeting the objectives of the company 2. Hiring a company to handle payroll records and employee benefits 3. Developing a logo for labeling and packaging the ceramics. 4. Making gift packages by placing gourmet food products in ceramic pots and wrapping them in plastic 5. Engaging an attorney to write contracts 6. Traveling to Mexico himself to arrange for the purchase of products and their shipment back to the company. 7. Arranging new ways of taking orders over the Internet and shipping the products 8. Keeping track of the characteristics of customers and the number and types of products they buy 9. Following up with customers to see if they received the products and if they are happy with them 10. Arranging for an outside firm to keep the accounting records 11. Distributing brochures that display the ceramics and refer to the website Classify each of OrtezExplanation / Answer
1) Management Accounting
2) Human Resources
3) Design
4) Production
5) Legal Services
6) Supply
7) Distribution
8) Research and Development
9) Customer Service
10) Information Systems
11) Marketing
Candidate for outsourcing: Actions 1, 2, 5, and 10 are the most likely candidates
because they are support services. The other activities are primary processes. As
this is a new company, the value chain.
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