Heinsert Inc.is a computer manufacturing firm.Its core business process is the production of efficient processors and storage disks.It outsources the manufacturing of its computer screen to a camera and lens manufacturing firm called Zetax,which is highly efficient and has world-class capabilities.Identify the most appropriate reason why Heinsert outsources its computer screen production.
A)To increase the marketing expenses on its core operation
B)To upgrade its products' capabilities and services
C)To increase the revenue of its products
D)To decelerate the products' time to market

Question

Quizplus · Accepted Answer

Heinsert is primarily focused on the production of efficient processors and storage disks, and outsourcing the manufacturing of computer screens to Zetax ensures that they have access to world-class capabilities without diverting their resources from their core business process. By outsourcing, Heinsert can upgrade its products' capabilities and services, which could potentially increase revenue and market share. It is also a strategic decision that could accelerate the products' time to market. However, outsourcing as a way to increase marketing expenses would not be a smart decision as it would not directly contribute to the development of the core business process.