Shareholders Meeting (Scenario)
A senior manager at Hudson Motors Inc. presented the top management of his firm with a strategy aimed at improving sales and profits. Based in Kentucky, Hudson Motors has always used American-made parts for its automobiles. However, sales and profits have slumped miserably over the past three years. In his plan, the senior manager proposes to delegate certain noncore operations to external vendors besides setting up manufacturing units in Asia, where the cost of labor is significantly low.
-By proposing to set up manufacturing units in Asia, the senior manager of Hudson Motors is proposing the top management of his firm to adopt which of the following strategies?

Question

Quizplus · Accepted Answer

Setting up manufacturing units in Asia is an example of outsourcing, which involves delegating certain noncore operations to external vendors. This strategy can help reduce costs and improve efficiency. Product differentiation refers to creating a unique product or service that is different from competitors. Diversification refers to expanding into new products or markets. Crowdsourcing involves obtaining ideas or services from a large group of people, often through the internet. None of the other options accurately describe the proposed strategy of setting up manufacturing units in Asia.

Shareholders Meeting (Scenario) A Senior Manager at Hudson Motors Inc. Presented the Top