Strategic Frameworks for Make-or-Buy and Opportunity Cost Decisions
Автор: Sameer Alrishani
Загружено: 2026-01-24
Просмотров: 0
This video examines the strategic make-or-buy decision, a process where organizations determine whether to produce goods and services internally or purchase them from external suppliers. This choice is guided by three primary pillars: business strategy, risk management, and economic factors, including a thorough analysis of explicit and implicit costs. Central to this evaluation is the concept of opportunity cost, which measures the value of the next best alternative sacrificed when a specific path is chosen. Beyond simple price comparisons, businesses must weigh qualitative factors like proprietary technology protection, supplier reliability, and the potential for a comparative advantage. Ultimately, the video emphasizes that modern procurement requires a multidimensional framework to optimize efficiency and maintain long-term competitive health.
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