In which of the following situations would outsourcing be beneficial?

Outsourcing is often a strategic decision made by companies to enhance efficiency and effectiveness in their operations. When a firm lacks expertise in a non-core activity, outsourcing becomes particularly beneficial because it allows the company to leverage the specialized knowledge and skills of external providers. This can lead to improved quality and innovation in areas where the company may not have the necessary skills or experience.

By utilizing external vendors or partners who have a proven track record in those non-core activities, the firm can focus its resources and attention on its primary business functions, ultimately leading to higher overall productivity and competitive advantage. Additionally, outsourcing can often result in cost savings, as specialized providers may operate more efficiently due to their expertise or economies of scale.

In the other scenarios, outsourcing would not be advantageous. Increasing manufacturing control would suggest a desire to keep operations internal to maintain oversight and consistency. Reducing costs through insourcing implies that the firm can manage those activities more effectively and economically in-house. Prioritizing the maximization of internal resources indicates a focus on leveraging existing capabilities rather than seeking external solutions. Thus, option B accurately captures a key situation where outsourcing would be strategic and beneficial.