BUS610 Wk5 Disc2

A virtual organization refers to a company that is typically operating using the bare minimum resources – opting to outsource most of its duties to third party contributors (Baack, 2012).  For example, a company like Amazon allows consumers to choose items to buy from multiple sellers, and then proceeds to provide a portal for payment to the seller – requiring the seller to arrange for the packaging and shipment of the goods.  This type of business model allows Amazon to operate their business without the need for a warehouse, shipping agents, and sometimes, payment processing personnel.  In essence, this virtual organization relies on many other organizations to provide services that make it a seamless operation for Amazons client – yet allowing them to operate with a fraction of the cost and much more flexibility than a conventional organization. 
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