Question

Teal Motors Inc., an automobile company, outsources the manufacturing of most of the automobile parts to several other companies that specialize in making parts such as ignition boxes, coil wires, and grills. Teal Motors makes sure to get these parts manufactured at a much lesser rate and pays full attention to their critical parts. In this scenario, Teal Motors Inc. is effectively avoiding a _

Answer 1

Answer:

The question is missing the below options:

A. loss of identity

B. loss of frequency

C. loss of facility

D. loss of focus

The correct option is D,loss of focus.

Explanation:

Loss of identity does not arise in this case, as Teal Motors Inc. is still responsible for coupling these parts into complete and brands it in own brand name.

Since it is not clear cut that Teal Motors Inc. has in-house facilities to produce the outsourced parts,letting the available production facilities rot away without being put to proper use does not arise.

The focus here is that the company specializes in the critical components that are most important in its automobiles and would prefer to outsource non-critical parts to others,hence a modular approach to manufacturing is favored.