Audio Component Outsourcing (Scenario)

question 23

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 is a major challenge often faced by focal firms that engage in global sourcing?

• A) no control over the quality of outputs
• B) domestic management of local distribution
• C) increased costs of business travel
• D) lower-than-expected cost savings

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Definitions:

Concrete Identifications

The process in early child development where children categorize objects and persons in their environment in a literal and straightforward manner.

Naming Conventions

Established rules for determining the names of things within a particular field or industry.

Abstract Information

Concepts or ideas that are not concrete or tangible but are understood intellectually or represent something symbolically.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.