Module 3: External Agreeements

Question 1

External Coordination

Answer 1

How much of the firm’s activities are performed inside the organisation vs how many are performed outside of the organisation.

Question 2

External coordination is an element of organisational configuration ….in addition to understanding strategy (alignment & obliquity), we look towards how many activities the firm performs inside (within) and outside the organisation. Firms that prefer to control their activities are known as ….

Answer 2

Self-contained

Question 3

Firms that are fine with implementing flexibility and therefore having less control over activities are configured as…

Answer 3

• collaborative community
• confederation
• outsourcer

Question 4

Self-contained

Answer 4

• Few external people
• Few external activities

Question 5

Collaborative Community

Answer 5

• Few external activities
• Many external people

Question 6

Outsourcer

Answer 6

• Many external activities
• Few external people

Question 7

Confederation

Answer 7

• Many external activities
• Many external people

Question 8

What is the external activities dimension measuring?

Answer 8

The number of formal & informal contracts for product/services purchased from suppliers; new products or R&D for which you contract.

Question 9

What is the external people dimension measuring?

Answer 9

The number of people who are not employees but engage in important (essential) activities in the organisation.