edward ortez recently opened his own company 540536

The Value Chain

Edward Ortez recently opened his own company. He has been thinking of ways to improve the business. Here is a list of the actions that he will be undertaking:

1. Engaging an accountant to help analyze progress in meeting the objectives of the company

2. Hiring a company to handle payroll records and employee benefits

3. Developing a logo for labeling and packaging the ceramics

4. Making gift packages by placing gourmet food products in ceramic pots and wrapping them in plastic

5. Engaging an attorney to write contracts

6. Traveling to Mexico himself to arrange for the purchase of products and their shipment back to the company

7. Arranging new ways of taking orders over the Internet and shipping the products

8. Keeping track of the characteristics of customers and the number and types of products they buy

9. Following up with customers to see if they received the products and if they are happy with them

10. Arranging for an outside firm to keep the accounting records

11. Distributing brochures that display the ceramics and refer to the website Classify each of Ortez’s actions as one of the value chain’s primary processes— research and development, design, supply, production, marketing, distribution, or customer service—or as a support service—human resources, legal services, information systems, or management accounting. Of the 11 actions, which are the most likely candidates for outsourcing? Why?