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Jean - Michel is the CEO of Kronos Timepieces, a retailer and manufacturer of fashion watches and watch accessories. The company, which was founded in
JeanMichel is the CEO of Kronos Timepieces, a retailer and manufacturer of fashion watches and watch accessories. The company, which was founded in is based in Switzerland and employs around people in five countries. It currently sells its watches in countries, with a recent expansion into several Middle Eastern and far Eastern countries. Kronos has decided to introduce a lowerpriced unisex wristwatch. JeanMichel has been considering contracting a brand new factory located in Singapore to manufacture the lowerpriced line of wristwatches, rather than using Kronos older, main factory, which is located in nearby Grenchen. Which of the following factors best supports JeanMichels decision to outsource production of the watches?
Select one:
a The companys ability to rapidly and reliably deliver its watches will be increased by the state of the art facilities in the Singapore factory.
b The manufacture of watches is standardized and the company is sufficiently wellestablished, making outsourcing an attractive option.
c Automation can often achieve significant labor cost savings, increasing the advantage of moving production abroad.
d The current supply chain is not as highly efficient and routine as it could be; using the Singapore factory could address that problem.
e Even though Kronos will incur additional costs of sending staff from Switzerland to manage the Singapore factory, costs will be lower in the long run.
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