Acme Software (Scenario)
Acme Software is a U.S.-based maker of software products for the health care industry.
Recently Acme has been investigating whether it would be beneficial to internationalize
some of its value-chain activities. Acme hires a consulting group to help determine
which, if any, value-chain activities could be conducted abroad to promote business
growth. The consulting group identifies two health care software development
companies in India that could provide programming services at a lower cost than
Acme’s current expenditures for programming. In addition, the consultants conduct
international market research which shows that German health care companies have a
strong demand for the type of software that Acme offers.
Which of the following would be most important for Acme to determine before
outsourcing its programming services to India?
A) What benefits have Indian companies gained historically from internationalizing
their value-chain activities?
B) Do Indian businesses outsource value-chain activities to Europe?
C) Would the lower cost of outsourcing allow Acme to sustain a competitive advantage
in its business operations?
D) Is either of the Indian health care companies interested in moving their operations
abroad?
The form of legal ownership that an entrepreneur chooses for a venture primarily
affects these concerns.
A) profit and productivity
B) taxes and liability
C) liability and planning
D) taxes and revenue