Question: Chomp Comp Computers has decided to procure the processing chips it puts in its laptop computers from external suppliers rather than manufacturing these chips in
Chomp Comp Computers has decided to procure the processing chips it puts in its laptop computers from external suppliers rather than manufacturing these chips inhouse. How will this decision affect the firm?
The firm will have more flexibility in purchasing and comparing prices of goods and services
The firm will be able to develop a capability around chip design and manufacturing for that will allow it to better innovate at a future time
The firm will be protected against the principalagent problem
The firm will be able to motivate its employees with highpowered incentives
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