Scenario - Ardella Enterprises
Twenty years ago two people from New Jersey, USA had a dream of building a superior company that would have global operations with an unparalleled supply chain. The idea took root and Ardella Enterprises was born. This company conducts operations across four continents. It has earned a reputation for prompt deliveries, accurate shipments, and exemplary customer service. This partnership is quickly taking the lead in the industry and is contemplating further expansion. Ardella Enterprises grossed over $11 billion last year. Its plan for additional expansion and growing Internet influence is projected to increase sales by two billion dollars within the first year.
-Which one of the following would describe Ardella Enterprises if it would decide to only complete the product's design and outsource all the other production process functions?

Question

Quizplus · Accepted Answer

A hollow corporation is a company that outsources most of its production processes, retaining only the core functions such as design.