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.

---

Definitions:

Lymphatic Trunks

Large lymphatic vessels that drain lymph from different parts of the body into the bloodstream.

Lymphatic Collecting Vessels

Specialized vessels within the lymphatic system that transport lymph fluid back to the circulatory system.

Thymus

A lymphoid organ situated in the neck region that plays a role in the maturation of T cells, essential for the immune system.

Plasma Proteins

Proteins found in blood plasma, playing roles in blood clotting, defense against disease, and transportation of substances.