1. A cell phone company is facing stiff competition in the market. Accordingly, the company's product manager is planning to manufacture a new model with certain new features to stay competitive in the market. But, the company does not have a skilled workforce that can help in manufacturing the desired product. What should the company's product manager do to carry out the production?
Answer: A
Focus on outsourcing the production
Outsourcing the production allows the company to leverage external expertise and skilled labor that it currently lacks, making it a viable solution for introducing a new model with advanced features.
A) Focus on outsourcing the production
This option is correct as it provides the company with access to skilled labor and expertise that it needs to manufacture the new mobile phone model. By outsourcing, the company can remain competitive without having to invest time and resources into training its existing workforce or hiring new employees.
B) Focus on insourcing the production
Insourcing would require the company to develop its own skilled workforce, which is not feasible given the current lack of skills within the organization. This option would likely result in delays and increased costs, making it an unsuitable choice in a competitive market.
C) Focus on importing the new mobile phones
Importing new mobile phones does not address the need for the company to produce its own model with new features. This option shifts the focus to buying products from other manufacturers rather than developing an innovative competitive product internally.
D) Focus on exporting the existing mobile phones
Exporting existing models does not solve the issue of competition or the need for new features. This option would only maintain current sales without addressing the urgent need for innovation and new product development.
Conclusion
Outsourcing production is the most effective strategy for the company's product manager in this scenario, as it directly addresses the skill gap while enabling the introduction of a competitive new model. The other options do not provide a solution to the core issue of lacking skilled labor necessary for manufacturing a new product, thus failing to meet the company's strategic needs.