Question

Cash Now Industries just hired 500 new workers to build ATMs and self-service check-out systems at its manufacturing plant in Tennessee. The company also plans to hire several hundred more employees by 2021. In the past, these machines were built primarily in Asia. Both shipping costs and quality control were cited as the reasons these companies have elected to change production strategy to:A. insourcing.
B. outsourcing.
C. benchmarking.
D. competency control.

Answer 1

Answer:

The correct option is A, insourcing

Explanation:

Insourcing refers to the processes of developing competences,skills and capabilities within the organization rather placing core functions in the hands of external firm by using employees of the company.

Even though insourcing is more expensive in short-term but it is cheaper overall than outsourcing in the long-run.

Outsouring  is contracting tasks to outside firms that are known as experts in their respective fields of human endeavors.

Benchmarking is about comparing processes within the organization with similar firms modes of operations in order to identify best practice