A computer chipmaker maker, Denver-based Durabuild, has built a steady, sustainably profitable enterprise business serving a host of satisfied U.S. customers in the information technology industry. Recently, facing slowing growth prospects in its domestic market, its senior executives have begun assessing the potential of foreign markets. After a good bit of study and debate, they have decided to expand into several fast-growing emerging economies, most notably Mexico and Brazil. Getting started calls upon Durabuild's leaders to determine the best course of getting their product overseas. As one would expect, management resting with several questions. Most prominently, they’re currently debating the merits of exporting Colorado fabrication facility to Mexico and Brazil. Or, alternatively, should Durabuild open and operate a smaller scale, but still efficient chip fabrication facility in Brazil. Which of the following questions best describes the internal point of issue that the company faces? A) Should Durabuild have different quality standards in its foreign plants than the standards it holds to in its domestic plants? B) Should Durabuild establish plants in foreign countries or should it ship domestically made products overseas? C) Should Durabuild use foreign materials suppliers or stick with domestic suppliers? D) Should Durabuild continue to have metals as its primary product or should it switch to an alternate product? E) Should Durabuild control all company activities from a central U.S. headquarters or should it allow foreign plants to make their own decisions?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A computer chipmaker maker, Denver-based Durabuild, has built a steady, sustainably profitable enterprise business serving a host of satisfied U.S. customers in the information technology industry.

Recently, facing slowing growth prospects in its domestic market, its senior executives have begun assessing the potential of foreign markets.

After a good bit of study and debate, they have decided to expand into several fast-growing emerging economies, most notably Mexico and Brazil.

Getting started calls upon Durabuild's leaders to determine the best course of getting their product overseas.

As one would expect, management resting with several questions. Most prominently, they’re currently debating the merits of exporting Colorado fabrication facility to Mexico and Brazil.

Or, alternatively, should Durabuild open and operate a smaller scale, but still efficient chip fabrication facility in Brazil.

Which of the following questions best describes the internal point of issue that the company faces?

A) Should Durabuild have different quality standards in its foreign plants than the standards it holds to in its domestic plants?

B) Should Durabuild establish plants in foreign countries or should it ship domestically made products overseas?

C) Should Durabuild use foreign materials suppliers or stick with domestic suppliers?

D) Should Durabuild continue to have metals as its primary product or should it switch to an alternate product?

E) Should Durabuild control all company activities from a central U.S. headquarters or should it allow foreign plants to make their own decisions?

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