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The Ramifications of Business Outsourcing

You are the manager of the best-performing subsidiary in an MNE. Because bonuses are tied to subsidiary performance, your bonus is the highest of all subsidiary managers. Now Headquarters is organizing managers from other subsidiaries to visit and learn from your subsidiary. You worry that if performance at other subsidiaries catches up to yours, then your subsidiary will no longer be the star unit and your bonus will go down. What are you going to do?

You are a corporate R&D manager at Boeing and are thinking about transferring some R&D work to China, India, and Russia. Reportedly the same work performed by a U.S. engineer who makes $70,000 a year can be done by an engineer in China, India, or Russia for less than $7,000. However, U.S. engineers at Boeing have staged protests against such moves. U.S. politicians are similarly vocal concerning job losses and national security hazards. What are you going to do?

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In a situation of this nature, I would have to follow the directives of headquarters and provide a learning experience for the managers that visit my subsidiary. I would be very strategic in the manner in which I provided these managers with information that would help them ...

Solution Summary

This solution provides a brief answer to each question, regarding actions taken as a manager in potentially unethical situations, totaling 192 words.