Question

"Audio Component Outsourcing (Scenario)

Echo Corp., a company based in Boston, 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 global sourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that global sourcing would enable the firm to be more competitive without sacrificing quality.

Which of the following would be most important to determine in deciding whether to outsource some of Echo's value-chain activities?

A) What are the long-term strategic goals and objectives of Echo?
B) Do engineers working in Echo have the ability to speak one or more European languages?
C) Are Echo employees generally afforded a high degree of workplace freedom?
D) Does Echo intend to increase its annual budget for innovation?"

Answer 1

The most important factor to determine in deciding whether to outsource some of Echo's value-chain activities is the long-term strategic goals and objectives of Echo.

Step-by-step explanation:

In deciding whether to outsource some of Echo's value-chain activities, the most important factor to determine would be the long-term strategic goals and objectives of Echo. By understanding what Echo aims to achieve in the future, the decision to outsource can be aligned with those goals. Factors such as the ability of Echo employees to speak European languages, the degree of workplace freedom, and the annual budget for innovation are not directly related to the decision of outsourcing and may not have a significant impact on the competitiveness and quality of Echo's products.