For Solutions Pro: Week 7

1. Discuss the advantages and disadvantages possibly experienced by the American computer manufacturers, such as HP, when outsourcing manufacturing and assembly to countries in Asia. Your discussion should address the following aspects: cost, focus on core activities, risks, employee morale, and product quality. Consider whether other types of manufacturing companies could experience similar advantages or disadvantages in outsourcing

2. Think of a strategy pursued by the company your work for, another company, or even a sports team. How can game theory help improve the outcomes for the decision makers? Explain whether simultaneous-move, repeated-move, or sequential-move games are most applicable. Are there incentives for collusion? Should a random strategy be used? What differences in outcomes might you expect if the decision maker uses game theory when developing strategies?