Answer this please. A BCDE A BCDE O@a) . A B C D, SO@ant o an components that ar

Question

Answer this please. A BCDE A BCDE O@a) . A B C D, SO@ant o an components that are seen as a source of Boeing's competitive advantage (wings, in particular, are often mentioned as a component that may not be outsourced for future aircraft models). What are the 1. What are the benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers? potential risks? Do the benefits outweigh the risk? (10) 2. Some critics have claimed that by outsourcing so much work, Boeing has been exporting criticisms? (10) overseas. Is this criticism fair? How should the company respond to such

Explanation / Answer

1) The benefits of outsourcing are:

The risks of the outsourcing program are:

The benefits outweigh the risks as a new product or project is associated with risks and diversification of vendor and partnership with them helps in reduction of the same.

2)

The criticism is not fair as Boeing has been doing the major assembling work in its American plant only and the parts and sub-systems ae only outsourced. Moreover if Boeing does not outsource some part of manufacturing, its costs will increase and it will no longer remain profitable and sustainable which will endanger several thousand jobs which it is currently able to provide.

So unless there is a governmental subsidy, the outsourcing is a cost effective way to remain profitable and generate jobs for Americans while also ensuring livelihood for others.

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