To respond to intense foreign competition, which strategic action are U.S. companies widely adopting to improve quality, speed, and cost efficiency?

Difficulty: Easy

Correct Answer: Automating

Explanation:


Introduction / Context:
Global competition pressures firms to deliver higher quality at lower cost with shorter lead times. U.S. companies have pursued multiple strategies—lean practices, digitalization, and above all, automation—to maintain competitiveness in manufacturing and services.


Given Data / Assumptions:

  • Competitive pressures include price, quality, and speed-to-market.
  • Automation includes robotics, software automation (RPA), and advanced process control.
  • The question seeks the broadly applicable strategic action.


Concept / Approach:
Automation increases throughput, consistency, and safety while reducing variability and labor for repetitive tasks. It frees skilled workers to focus on higher-value activities (process improvement, quality engineering) and supports reshoring by improving unit economics. While policy tools exist, operational excellence through technology adoption is a primary firm-level lever.


Step-by-Step Solution:
1) Identify options that represent sustainable, firm-controlled strategies. 2) Recognize automation as a pervasive, cross-industry approach to productivity gains. 3) Exclude options that are reactive, externally dependent, or harmful to capability building. 4) Select “Automating.”


Verification / Alternative check:
Industry surveys regularly cite automation as a top investment area to offset labor shortages and reduce cost per unit while raising quality metrics.


Why Other Options Are Wrong:
Ignoring competition is unsustainable. Tariffs are policy decisions and not a comprehensive firm strategy; reliance on them risks complacency. Cutting salaries can harm morale, retention, and quality without solving process inefficiencies.


Common Pitfalls:
Automating without reengineering processes first can lock in waste; pair automation with lean methods and rigorous change management.


Final Answer:
Automating

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