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:

Self-Esteem

An individual's subjective evaluation of their own worth or value.

Compensation

Refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Social Support

The assistance and encouragement provided by others, which can be emotional, informational, or practical, contributing to an individual's well-being.

Stress

A physical or emotional response to external pressures or demands that are perceived as challenging or threatening one's well-being.