Answer :
Answer:
The correct answer is letter "C": Quality problems.
Explanation:
Outsourcing is the practice by which a company hires a third party to be in charge of the production of what the company typically does but at lower costs. However, in some cases, the company does not have control over the quality standards of the third party, which is likely to use low-quality assets to profit as well.
The collapse of Icarus Inc. after outsourcing wings and turbine production is best attributed to 'c. Quality problems', stemming from the use of low-grade materials by the outsourcing provider.
Icarus Inc. decided to outsource the production of wings and turbines to focus on cost efficiency and reduce production time. However, the decision to outsource led to quality problems since the outsourcing provider used low-grade materials, resulting in the loss of a government contract and the eventual closure of the company. Among the options provided, the issue that best describes the cause of Icarus Inc. shutting down is 'c. Quality problems'.
Outsourcing has various risks such as loss of control, and while it may lead to cost reduction, it can compromise the essential quality standards, especially in manufacturing sectors like aerospace.
The scenario with Icarus Inc. highlights the potential consequences when outsourcing critical components, emphasizing that managing quality is crucial when delegating parts of the production process to external providers.
