Audio Component Outsourcing (Scenario)

question 65

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 would be most important to determine in deciding whether to outsource some of Echo's value-chain activities?

• A) What are the long-term strategic goals and objectives of Echo?
• B) Do engineers working in Echo have the ability to speak one or more European languages?
• C) Are Echo employees generally afforded a high degree of workplace freedom?
• D) Does Echo intend to increase its annual budget for innovation?

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Definitions:

Negative Attitude

A predisposition or a mindset that is characterized by cynicism, pessimism, or a general lack of enthusiasm about something or life in general.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, stemming from a traumatic event or persistent failure to succeed.

Fatalistic Thinking

The belief that all events are predetermined and therefore inevitable, often leading to a sense of powerlessness over one's future.

Overcompensation

A psychological term referring to the defense mechanism by which individuals cover up their weaknesses, real or imagined, by emphasizing traits they consider more desirable.