Fun Play Global Sourcing (Scenario)

question 38

Multiple Choice

Fun Play Global Sourcing (Scenario)
Fun Play Inc., a company manufacturing toys for children, has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist its managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the outsourced activities should be located.
-Which of the following would most likely be considered by the consultants while deciding whether to keep each value-adding activity in the home country or locate it in a foreign country?

• A) Who will be responsible for training suppliers in foreign locations?
• B) Can different value-adding activities be effectively configured across the world?
• C) Would the HR department of Fun Play be able to ensure smooth repatriation for managers after they complete their assignments abroad?
• D) What are the odds in favor of Fun Play's dominating the children's toy segment in its home country?

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Definitions:

Payroll Costs

The total expenses incurred by a company to compensate its employees, including wages, salaries, and benefits.

Early Retirement Incentive Programs

Offers that organizations provide to encourage employees to retire earlier than the normal retirement age, often including financial benefits.

Payroll Costs

The total amount of money a company spends on employee salaries, wages, benefits, and taxes.

Higher-Wage Workers

Employees who receive compensation at a rate higher than the average or standard in their sector, often due to specialized skills, experience, or high performance.