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Related Concept Videos

Strategies of Self-Presentation I: Strategic Self-Presentation01:12

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Strategic self-presentation refers to individuals' intentional efforts to influence how others perceive them. This process is employed in various social and professional settings, such as job interviews, dating, politics, and legal contexts, where individuals seek to shape impressions to gain social or material advantages. While people generally present themselves in ways that align with their authentic characteristics, external factors, such as cognitive load, can hinder their ability to...
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Nucleosomes are the DNA-histone complex, where the DNA strand is wound around the histone core. The histone core is an octamer containing two copies of H2A, H2B, H3, and H4 histone proteins.
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Nucleosomes are the DNA-histone complex, where the DNA strand is wound around the histone core. The histone core is an octamer containing two copies of H2A, H2B, H3, and H4 histone proteins.
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Direct current (DC) refers to an electric current that flows in a single direction, maintaining a constant polarity. This is in contrast to alternating current (AC), which periodically changes its direction and magnitude. AC forms the backbone of modern electricity transmission and distribution systems due to its efficient long-distance transmission capabilities.
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Source transformation is a fundamental technique employed in circuit analysis, offering a valuable tool for simplifying complex electrical circuits. This technique involves the replacement of either a voltage source in series with a resistor by a current source in parallel with a resistor, or vice versa. The key concept here is that when the original sources are deactivated (turned off), the equivalent resistance at the circuit's end terminals remains the same.
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Direct current is a flow of electric charge in only one direction and has a steady state of constant voltage in the circuit. Rectifiers, batteries, commutator-equipped generators, and fuel cells are some examples of devices that generate direct current. Nowadays, most applications use a time-varying voltage source. Alternating current is a flow of electric charge that periodically reverses direction. An alternating current is produced by an alternating emf that is generated in a power plant. If...
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Strategic sourcing: from periphery to the core.

Mark Gottfredson1, Rudy Puryear, Stephen Phillips

  • 1mark.gottfredson@bain.com

Harvard Business Review
|February 24, 2005
PubMed
Summary

Globalization shifts competition, making strategic sourcing crucial. Companies must reassess functions for outsourcing, identifying core activities, potential partners, and new business opportunities for a comprehensive capabilities-sourcing strategy.

Area of Science:

  • Business Strategy
  • Supply Chain Management
  • Organizational Behavior

Background:

  • Globalization is altering competitive landscapes, elevating sourcing from a peripheral cost focus to a core strategic opportunity.
  • Advanced outsourcing now permits critical functions like engineering, R&D, manufacturing, and marketing to be externalized, reshaping organizational structures and value chains.
  • Vanguard companies are creating new industries by specializing in single functions, demonstrating the transformative potential of strategic sourcing.

Purpose of the Study:

  • To guide companies in reassessing their functions for strategic sourcing opportunities.
  • To provide a framework for identifying which functions to retain, outsource, or transform into new business ventures.
  • To develop a comprehensive capabilities-sourcing strategy tailored to evolving global competition.

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Main Methods:

  • A three-step process is presented to analyze corporate functions for sourcing decisions.
  • Case study analysis, exemplified by 7-Eleven, to illustrate successful partnership organization and management.
  • Strategic review of organizational capabilities and value chain components.

Main Results:

  • Companies can identify core functions requiring protection and those suitable for outsourcing.
  • Outsourcing critical functions can lead to new business models and competitive advantages.
  • A structured approach to capabilities sourcing enables companies to maximize benefits from strategic partnerships.

Conclusions:

  • A strategic, broad view of capabilities sourcing is essential for maximizing benefits.
  • The success of outsourcing strategies depends on creative organization and management of partnerships.
  • All companies must rigorously evaluate their functions to develop an effective capabilities-sourcing strategy in the face of global competition.