Asked by Christopher Adams on Jun 11, 2024
Verified
Magenta Inc., an Australian consumer electronics company, produces certain products in-house to ensure quality and availability. It also purchases the same products from suppliers to force competition and push innovation within the in-house unit. Given this information, it can be said that Magenta is engaged in _____.
A) global branding
B) dual sourcing
C) offshoring
D) rightsizing
Dual Sourcing
A source strategy in which firms produce products in-house to ensure quality and availability while also purchasing the same products from suppliers in order to force competition and push innovation within the in-house unit.
- Comprehend the impact that decisions about internal production versus outsourcing have on a firm's operational efficiency and cost savings.
Verified Answer
JE
Joshua EcholsJun 14, 2024
Final Answer :
B
Explanation :
Magenta Inc. is engaged in dual sourcing, which means it produces some products in-house while also purchasing the same products from external suppliers. This strategy is used to promote competition and innovation, as well as to ensure quality and availability.
Learning Objectives
- Comprehend the impact that decisions about internal production versus outsourcing have on a firm's operational efficiency and cost savings.