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:

Bed Rest

A medical treatment in which a patient is advised to stay in bed for most of the time to aid the process of recovery.

Constipation

A common condition characterized by infrequent bowel movements and difficulty in passing stools.

Dehydration

A condition resulting from excessive loss of body water and electrolytes.

Environmental Temperature

The measure of warmth or coldness in a particular environment, significant in determining the conditions for living organisms and for conducting various physical processes.