Scenario: Hafstrom Motors Based in Kentucky, Hafstrom Motors Has Always Used Spare Parts

Multiple Choice

Scenario: Hafstrom Motors
Based in Kentucky, Hafstrom Motors has always used spare parts made in America for its automobiles. However, sales and profits have slumped over the past three years. A senior manager at the company comes up with new strategies for improving the firm's production activities.
-The senior manager argues that Hafstrom could reduce its costs significantly by purchasing parts from companies located overseas rather than producing its own parts.Which of the following is the senior manager advocating?

A) outsourcing
B) a greenfield investment
C) lean production
D) vertical integration