Question

A computer chip 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). This draws criticism in its new market and affects its current market position and productivity. Which of the following would be an appropriate reactive (emergent) strategy while moving forward?
A. Hiring and training new talent to begin operations in the emerging market
B. Acquiring a local computer chip marketing and distribution specialist firm in the new location
C. Cancelling the idea of outsourcing and retaining the existing the workforce to run operations
D. Shifting the existing workforce to the new geographical location and paying them according to new standards
E.Cancelling the job cuts till the market situation and entry operations

Answer 1

The best strategy would be to cancel the job cuts till the time the market situation and the entry operations stabilize.

Answer: Option E

Explanation:

The decision of outsourcing the operations taken by the businesses is done to ease out the work and give it outside the company because they themselves can not work upon it. But if this leads to criticisms, then it should be stopped.

The best strategy that the computer company should have is to cancel the job cuts to get the positive reactions back. The company should not go to labor of other areas cutting jobs of its own labor because this will harm it's image in the market and affect the productivity.