Economics Answers

1. What is a virtual corporation and it’s objectives?

Virtual corporation is a network of independent companies often temporarily connected to each

other which share the same vision,management and overall strategy, for the purpose of obtaining
better opportunities and wanted success.Its objective is to make companies competitive and flexible
through sharing costs,skills and resources via communication technologies and contribute different
functions that will help them achieve their organizational goals.

2. What are the required component activities in virtual company?

The required component activities in virtual company are the value and non value activities
within the value chain of the virtual corporation. Companies share information through modem
technologies. They have their designated functions that they will contribute in order to innovate
and create a great product.

3. Identify and discuss the factors that contribute to the success of a virtual corporation.

The factors that contribute to the success of a virtual corporation are trust,knowledge,and
information technology. First, trust within members in the network helps establish a friendly
environment that will motivate them to share their resources and knowledge which reduces
uncertainty.Second, knowledge is essential because it allows companies within a network to
become competent and develop the best product. Lastly, in order to communicate the
information accurately information technology is needed. It reduces conflict and benefits
company greatly whenever there is a need to disseminate information.