BU3410 Analysis5-2_JM - Jonathon Myhre Managing the Make vs...

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Jonathon Myhre 10/18/14 Managing the Make vs. Buy Decision Week 5.2 Analysis Companies have it tough these days. Having to decide if they are going to make a certain product or buy it as it is and put a little tweak to it to sell it. Let’s go over some advantages and disadvantages to the tough decision companies have to make. If you were to decide to make the product or component, then several things will happen. One is that your company is creating jobs for the public. Creating jobs is a big thing and shows growth to your company. Second it could lower the cost of the product/component meaning that you could get a greater return on profit. Third it gives your company a greater control on the product. You can make it anyway you want. Now on the other hand, here are
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Unformatted text preview: some reasons for buying the product/component. First you lower the risk that your company has on the product so there is less of a potential risk. Secondly it could cut the cost of the product by half. Without having to employ a handful of people to operate the expensive machines can save a small fortune right off the bat. Doing this also offers a third reason being flexibility. Without all that extra cash up front you can spend it greater on research or give yourself a leeway if you need to stop production on the line and create something completely new instead. So you see it can be advantages for a company to go either way. It just depends on the product they are trying to sell. Jonathon Myhre 10/18/14 Managing the Make vs. Buy Decision Week 5.2 Analysis...
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