Many Products in the Marketplace Today Are Built from Components

question 19

Essay

Many products in the marketplace today are built from components designed and manufactured by sub-contractors. While the extent of this practice is not well known to consumers, manufacture and sale of multi-component units that use parts from many different companies continues to grow.
Required:
If the assembling company is using value-chain analysis in its strategic planning, comment on the following:
(a) The cost justification for subcontracting.
(b) The willingness of consumers to buy products they know contain subcontracted parts.
(c) The problems of quality control facing the assembling company.

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Definitions:

High-Strung Temperament

A characteristic of individuals who are often very anxious, tense, or easily upset over minor issues.

Post-Traumatic Growth

Positive psychological changes as a result of struggling with extremely challenging circumstances and life crises.

Psychological Changes

Alterations or developments in emotional, cognitive, or behavioral characteristics over time due to various factors or life experiences.

Life Crises

Significant life events that require a substantial amount of adjustment and can lead to personal growth or distress.