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A major part of this process involves finding ways to maximize standardization efforts. A company needs to recognize its focus, core competencies, and means of differentiation. It needs to make decisions such as the needs to outsource processes that are not of its core competency, and rather focus at the ones it holds a competitive advantage. Doing so, there are two major advantages; first, the companies can specialize only on certain processes and try to establish economies of scale, and second, it can increase its returns by using assets that are not owned and maintained by them. Outsourcing requires negotiation and good communication that leads to coordination...
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