Your organization is facing significant competition, putting pressure on your margins. Labour costs account for a significant percentage of your cost structure, and you are concerned with your profitability, moving forward. Furthermore, you are finding that it is extremely difficult to find production workers willing to work for minimum wage in Canada. As a result, you decide to move operations to Vietnam so you can take advantage of lower labour costs. Which type of key constraint has caused you to make this decision?
A) tax
B) financial
C) legislated
D) service market

Question

Quizplus · Accepted Answer

The key constraint in this scenario is financial, as the pressure on margins and high labour costs are affecting the profitability of the organization. Moving operations to Vietnam is a financial decision to take advantage of lower labour costs. Tax and legislated constraints are not mentioned in the scenario, and service market constraints are not relevant to the decision to move operations to Vietnam.

Your Organization Is Facing Significant Competition, Putting Pressure on Your