Scenario: Audio Component Outsourcing

question 44

Multiple Choice

Scenario: Audio Component Outsourcing
Echo Corporation 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 outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following should most likely be considered in making the decision to outsource some of Echo's manufacturing activities?

• A) Do purchasing components present the lowest cost option for Echo?
• B) Would Echo engineers be willing to relocate to a foreign nation?
• C) Is Echo prepared to cover moving expenses for its managerial talent?
• D) Can Echo find employees for a customer service center in the U.S.?

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Definitions:

Germinal Period

The initial two weeks of prenatal development after conception, characterized by rapid cell division and the beginning of cell differentiation.

Fetal Stage

The fetal stage is the last stage of prenatal development, beginning in the ninth week of pregnancy and continuing until birth, characterized by rapid growth and maturation of organs and body systems.

Embryonic

Pertains to the earliest stage of development, typically before birth, often used in biology to describe the early stages of an organism's development.

Germinal

Pertaining to the earliest stage of development, particularly right after fertilization in organisms.