A Company Is Deciding If It Should Design a Product

question 94

Essay

A company is deciding if it should design a product in-house or outsource the design. If outsourced, the cost for a low bidder would be $40,000, and the cost for an expensive bidder would be $100,000. To design in-house would require overtime for an already stretched design team with total costs of $70,000. If all three designs (in-house, low bid, high bid) are equal in quality and the likelihood of finding a low bidder is 60% (meaning that 40% of the time the firm will have to hire the expensive bidder), should the company outsource design or do it in-house?

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Definitions:

Social Conflict

An alternative term for conflict theory; it emphasizes the struggles between groups in society over inequalities, power, and resources.

Dysfunctional Consequences

Negative effects or outcomes that result from maladaptive behaviors or processes, often impacting mental health or social functioning.

Structural-Functional

A sociological perspective that views society as a complex system whose parts work together to promote stability and integration.

Thanatology

The study of death-related behavior, including actions and emotions concerned with dying dying, death, and bereavement (literally, thestudy of death).