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Y1 - Organisation and Strategy

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Week 2

Erasmus Universiteit · Int. Economics and Business Economics

Y1 - Organisation and Strategy

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  1. Reasons to Buy Instead of Make
  2. 1. Exploiting Economies of Scale and Learning
  3. 2. Avoiding Agency Costs
  4. 3. Reducing Influence Costs
  5. Reasons to “Make” (Produce In-House Instead of Outsourcing)
  6. 1. Coordination Advantages
  7. 2. Protection of Private Information
  8. 3. Transaction Costs and Relationship-Specific Assets
  9. Side Note: Economic Foundations of Contracts
  10. Common Misconceptions in Make-or-Buy Decisions
  11. 1. “Make if the asset is a source of competitive advantage”
  12. 2. “Buy to avoid the cost of making”
  13. 3. “Make to avoid paying a profit margin to suppliers”
  14. 4. “Make to avoid high prices during shortages”
  15. 5. “Make to control or tie up a distribution channel”

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Y1 - Organisation and Strategy