The core business process of a locomotive firm is designing engines.It outsources the production of automobile bodies and several of its parts to different organizations in South Africa and South Asia.Which of the following could be the most appropriate reason for the locomotive firm to outsource?
A)To increase marketing expenses on the core operation
B)To decelerate the product's time to the market
C)To increase the product's deployment expenses
D)To focus on the firm's main operations

Question

Quizplus · Accepted Answer

The most appropriate reason for the locomotive firm to outsource is to focus on its main operations, which is designing engines. By outsourcing the production of automobile bodies and several of its parts, the firm can allocate its resources and attention to its core business process, which can result in better quality products and higher profits. A) and C) are not relevant reasons for outsourcing, and B) suggests speeding up the product's time to market, which does not necessarily align with the firm's main focus on designing engines.

The Core Business Process of a Locomotive Firm Is Designing