Rather Than Relying on Design Engineers Alone to Design New

question 89

Essay

Rather than relying on design engineers alone to design new products, the CEO of Quokka Resources wants to form teams of people from several departments to develop more creative products. These teams will consist of design engineers, manufacturing engineers, marketing staff and purchasing staff. Quokka's CEO believes that these teams will develop more creative products than design engineers did when working alone. Identify three potential constraints that might interfere with the CEO's expected benefits of team-based decision making and creativity.

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Definitions:

Outsourcing

The practice of hiring third parties to perform services or create goods that were traditionally done in-house, to reduce costs and improve efficiency.

Exchange Rate Risk

Exchange rate risk is the potential for investors to experience losses due to changes in the exchange rate between two currencies.

International Commerce

The exchange of goods, services, and capital across international borders or territories.

Industrially Developed Nations

Countries with significant industrialization, advanced technological infrastructure, and high levels of income and standard of living.