Scenario: Audio Component Outsourcing

question 43

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 is most likely a potential benefit for Echo if it outsources some of its manufacturing activities?

• A) heightened communications awareness
• B) increased activity in e-commerce sales
• C) strong intellectual property protection
• D) eliminating the exposure of assets to political risk

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Definitions:

Production Era

A historical period in business thought where the main focus was on manufacturing and producing goods, with little emphasis on marketing or customer needs.

Market Orientation

An organization with a market orientation focuses its efforts on continuously collecting information about customers’ needs, sharing this information across departments, and using it to create customer value.

Post-it Flags

Small, colorful strips of adhesive paper used for marking pages or sections in documents for easy reference.

Environmental Friendly

Practices or products that minimize harmful effects on the environment through reduced pollution or conservation of resources.