BMW is one of the world’s best known HPC manufacturers. Developing new cars is a costly, uncertain and complex    This company would need to  consider which  parts  of  the vertical chain to outsource and which to conduct inhouse. Using the theory of the optimal boundary of the firm, discuss BMW’s make-or-buy decision for developing and producing a HPC. What stages of the vertical chain should BMW consider conducting in house, and which should be outsourced? Provide reasons for your findings.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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BMW is one of the world’s best known HPC manufacturers. Developing new cars is a costly, uncertain and complex    This company would need to  consider which  parts  of  the vertical chain to outsource and which to conduct inhouse. Using the theory of the optimal boundary of the firm, discuss BMW’s make-or-buy decision for developing and producing a HPC. What stages of the vertical chain should BMW consider conducting in house, and which should be outsourced? Provide reasons for your findings.

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