Tex Tools applies its in-depth understanding of the challenges facing manufacturers to design and build custom machine tools that are highly valued by business customers. To maintain its competitive advantage, Tex Tools also wants to avoid spending more than is necessary on administrative activities such as managing employee benefits. What would be the most effective way for Tex Tools to minimize administrative expenses without sacrificing quality?
A) hiring new employees with administrative skills
B) downsizing the workforce so fewer administrators are needed
C) moving to a location where raw materials are abundant
D) outsourcing administrative work to an organization that specializes in these services
E) hiring temporary workers to fill permanent job positions

Question

Quizplus · Accepted Answer

Outsourcing administrative work to a specialized organization can help Tex Tools minimize administrative expenses. This option can provide access to expertise, technology, and resources that are not available internally at Tex Tools, resulting in cost savings and improved efficiency. It also allows Tex Tools to focus on its core business of designing and building custom machine tools. Hiring new employees with administrative skills, downsizing the workforce, moving to a new location, or hiring temporary workers may not be effective in reducing administrative expenses in the long run.

Tex Tools Applies Its In-Depth Understanding of the Challenges Facing