Echo Corporation Echo Corporation manufactures high-quality audio components for home entertainment systems, such as speakers, amplifiers, and receivers. Echo Corporation has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. To compete with the competitors, Mr. Rahman, the production manager, is in the process of deciding either to make or to buy the raw material in producing their product. Three months later, a senior manager at Echo Corporation, Mr. Rizqy, presented his manufacturing strategy to improve sales and profits to the top management. As Echo Corporation company based in Malaysia, the company has always used Malaysian-made parts for its audio components. Mr. Rizqy asks Echo Corporation's top management to approve his strategy of internationalizing the firm's production activities outside Malaysia. Mr. Rizqy proposes five potential locations around the world from which to choose to site for production and other activities. In helping the top management at Echo Corporation choose the location, Mr. Rizqy has informed the top management about specific issues they have to consider. Based on the above scenario, answer all the questions. QUESTION 1 Should Mr. Rahman make or buy the raw material for the production process? Elaborate and justify your answer. QUESTION 2 Discuss the issues that Echo Corporation needs to consider when choosing the facilities location planning. QUESTION 3 The top management is interested in one of Mr Rizky's proposed locations. Apart from internal financing, what other financial resources are available for Echo Corporation to finance its business operations in the new potential location? Discuss.
Echo Corporation
Echo Corporation manufactures high-quality audio components for home entertainment systems, such as speakers, amplifiers, and receivers. Echo Corporation has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. To compete with the competitors, Mr. Rahman, the
Three months later, a senior manager at Echo Corporation, Mr. Rizqy, presented his manufacturing strategy to improve sales and profits to the top management. As Echo Corporation company based in Malaysia, the company has always used Malaysian-made parts for its audio components. Mr. Rizqy asks Echo Corporation's top management to approve his strategy of internationalizing the firm's production activities outside Malaysia. Mr. Rizqy proposes five potential locations around the world from which to choose to site for production and other activities. In helping the top management at Echo Corporation choose the location, Mr. Rizqy has informed the top management about specific issues they have to consider.
Based on the above scenario, answer all the questions.
QUESTION 1
Should Mr. Rahman make or buy the raw material for the production process? Elaborate and justify your answer.
QUESTION 2
Discuss the issues that Echo Corporation needs to consider when choosing the facilities location planning.
QUESTION 3
The top management is interested in one of Mr Rizky's proposed locations. Apart from internal financing, what other financial resources are available for Echo
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