1. Outsourcing products to oversee manufacturing may help minimize the retail cost of these products, but it comes at risk. For example, American TV manufacturers Magnavox and Zenith outsourced the production of TVs to companies in Asia, and as a result have gone out of business. What actions could these companies have done to minimize the chance of being “hollowed out” and remain in business?

2. Boeing produces passenger aircraft as well as military jets, but not everything delivered is made by them. B/E Aerospace, Recaro, or Zodiac Aerospace makes the seats that passengers sit in. Boeing requires these suppliers to pre-assemble the seats for quick installation in the aircraft during construction. What actions can the seat manufacturers do to reduce costs that can be passed on to Boeing?