d. Can this relationship also be connected to the organizational structure? Explain and provide an example.

Core competencies which give a company a competitive edge must remain center place in the organizational structure. These activities require resources, decision-making influence and organizational impact. Any strategic change with respect to outsourcing business activities is likely to change the business, and often times changes in the organizational structure are needed to support these new activities. Of importance is protecting the core competencies by making sure they have the necessary resources to do their job.

An example from my company would be outsourcing financial activities we currently do internally now. Our company structure is mechanistic and hierarchical, and accounting practices are not critical to competitive position in the marketplace.