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:

Peer Review

The process of evaluating the work or performance of a colleague by other individuals in the same field or profession, often used in academic publishing and professional development.

Employee Carve-Out

A business strategy where a company excludes or "carves out" certain employees or groups from its standard benefits or plans, often offering alternative benefits or arrangements.

Core Self-Evaluation

refers to a fundamental assessment of oneself, encompassing one's capabilities, competence, and worth.

Job Satisfaction

The level of contentment employees feel towards their job roles, considering aspects such as work environment, duties, and compensation.