An industrial air-conditioner manufacturing giant decides to outsource its operations to a new geographical location with cheaper labor amidst ongoing labor strikes in a few of its existing locations (due to proposed job cuts and relocation of the plant offshore).This draws criticism in its home market and affects its current market position and productivity.Which of the following would be an appropriate reactive (emergent)strategy while moving forward?

Question

Quizplus · Accepted Answer

Canceling the job cuts till the market situation and entry operations stabilize would be an appropriate reactive strategy. This would help the company to retain its existing workforce and also avoid negative criticism in its home market. It would also help in maintaining productivity and stability during the initial phase of operations in the new location. Hiring and training new talent may be costly and time-consuming. Acquiring a local computer chip marketing and distribution specialist firm may not be relevant to the company's core operations. Shifting the existing workforce to the new geographical location and paying them according to new standards may lead to dissatisfaction among the workforce and affect their productivity. Canceling the idea of outsourcing would not address the issue of cheaper labor in the new location.

An Industrial Air-Conditioner Manufacturing Giant Decides to Outsource Its Operations