Audio Component Outsourcing (Scenario)

question 42

Multiple Choice

Audio Component Outsourcing (Scenario)
Echo Corp., a company based in Boston, manufactures high-quality audio components, such as speakers, amplifiers, and receivers for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in global sourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that global sourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following, if TRUE, most supports the argument in favor of global sourcing?

• A) There is no scarcity of qualified personnel in and around Boston.
• B) Studies show that by reconfiguring their value-chain systems or reengineering their business processes, companies can substantially improve their production efficiency and resource utilization.
• C) Camden Audio, Echo's most formidable rival, follows a strategy of product diversification.
• D) The rate of employee turnover at Echo has stabilized over the last decade.

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Definitions:

Ultrasound

A medical imaging technique that uses high-frequency sound waves to create images of organs and structures inside the body, commonly used in pregnancy.

CVS

Chorionic Villus Sampling, a prenatal test where a sample of chorionic villi is taken from the placenta for genetic testing.

Phenotype

The set of observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.

Environment

The sum of all external conditions and influences affecting the life and development of an organism, which can be natural or man-made.