Discussion Mod 3
disscussion 3
Stephanie Fernandez-Cruz posted Sep 3, 2019 9:38 PM
The company I am working for has decided to try and manufacture our product in a different country. I have decided to stand behind my CEO and agree that this is a benefit for our company. After doing some research I have found several benefits that we could take advantage of if we did outsource our product these benefits are but are not limited to lower cost, Mass production and lowering tooling cost.
Our company can use the funds we are saving by outsourcing and apply them to other areas of the business for growth. We could ultimately produce our product over seas for a fraction of the cost. If our budget was to remain the same as it would be here in the states, we could potentially pay the same and make twice if not more product in half the time.
My co-worker, Billy does not agree with me. He says that other areas in the world have minimal laws and restrictions on what they can and can not use and this could take away from quality. I answered to his statement that although that is true, we can apply our own restrictions to what is used to make and handle our product and that would guarantee quality is not compromised. he also points out that communication can become an issue if we go with someone that does not speak english. I dont think communiccation will be an issue, there are many translating services.
My other co worker April, agrees with me. She added that another benefit, production over seas is offered by several manufactors and we would have many options when looking for a manufactor and would not be limited as we would be if manufactoring in the states
Discussion Board 3: Integrative Managerial Issues
Tamecia Shephard posted Sep 4, 2019 9:56 AM
Good morning class,
The American toy company wants to move the company’s operations overseas. As one of the board members in the company, I am for the change because it will help increase the company’s rate of returns. The merits of opening oversea branches for American toys cannot be overestimated. First, overseas branches will help the company in establishing access to untapped markets for American Toy products. For instance, the company can open new branches in other parts of Europe, Africa, and Asia. According to Hill (2008), this will increase the overall sales volume hence increase the annual business income.
Secondly, expanding the business to other continents will expand the company’s brand recognition (Hill, 2008). With the company only operating in America, its brand name is only recognized by American consumers. This means that the products will not sell readily to consumers from other countries since the brand name will not be recognized internationally. As a result, opening overseas branches will make the company’s product penetrate to consumers on other continents making exportation more effective. Finally, the opening overseas branches will help the company benefit from economies of scale. This is because overseas branches will increase demand for American Toy products, boost sales income and consequently reduce the average cost of production. This will make the manufacturing process cost-effective hence increase the profit margin (Cohn, 2016).
I want to encourage the board member who is supporting the move to open overseas branches to help enlighten the rest of the members about the benefits of having overseas branches. This is because the move will help expand the business and increase its income. Conversely, I would like to challenge the board members who disagree with this move to reconsider their decision. The move to expand the firm to overseas countries will require the company to spend more and also expose the company to the risks associated with international trade. However, is worth noting that the benefits of expanding the company outweigh the presumed costs and risks. Opening of overseas branches will be a beginning point for the expansion of the business into a multinational corporation, and the benefits the company will yield in the long run will be substantial. I, therefore, encourage the members who are against the move to change their minds since the advantages of expanding to the global market are overwhelming, and the company cannot afford to lose the golden opportunity to grow.