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:

Diversity

The inclusion of individuals from various backgrounds, cultures, races, genders, etc., enhancing creativity and problem-solving in groups.

Uncertainty Avoidance

A cultural dimension that describes the extent to which a society tolerates ambiguity and uncertainty.

Tolerate Ambiguity

The ability of individuals to remain comfortable and function effectively in situations that are uncertain or unclear.

Dissenting Viewpoints

Diverse or opposing perspectives typically in a debate or discussion indicating disagreement with the mainstream or common understanding.