Audio Component Outsourcing (Scenario)

question 84

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.
-Global sourcing becomes a catalyst to overhaul organizational processes and company operations and increases the firm's overall competitive advantages by ________.

• A) encouraging firms to train unskilled labor through extensive training programs
• B) allowing firms to free expensive analysts, engineers, and managers from routine tasks to spend more time on high-value-adding activities
• C) relaxing quality standards
• D) installing a system of rewards to motivate employees

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Definitions:

Power of Attorney

is a legal document that grants one person the authority to act on behalf of another person in legal or financial matters.

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Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.

Liability

The state of being responsible for something, especially by law.