Assume you are a manager of a large heavy equipment manufacturing company. Your
ID: 406470 • Letter: A
Question
Assume you are a manager of a large heavy equipment manufacturing company. Your company currently outsources the manufacturing of a specialized piece of equipment to a firm in another country. The outsourcing of this piece of equipment has saved your organization a considerable amount of money and has increased profits by 15%. A recent newspaper article has revealed that this firm is paying their employees only a few dollars a day and their employees often work long hours. While you are not the only company that uses this firm your company was specifically named in the newspaper article. You have been asked by your CEO to make a decision on whether or not to continue to do business with this firm.
By Week 2, Day 3, post your answers to the following questions in paragraph form (minimum of 500-600 words) to this Discussion Area. Be sure to incorporate your weekly readings, citing your sources using proper APA (including in-text citations and references).
In making this decision you will need to do the following:
1. Discuss the ethics of continuing to do business with this firm. In this discussion evaluate the economic, legal and ethical issues. Describe how a written code of ethics might impact your decision.
2. Describe any other factors you would consider in making a decision to continue or discontinue doing business with this organization.
3. State the process you would follow to make your decision, provide your decision, and explain the decision making style you have used.
4. Prepare A SWOT analysis of your decision using the following table:
Strengths
Weaknesses
Opportunities
Threats
Strengths
Weaknesses
Opportunities
Threats
Explanation / Answer
First of all we need to make sure this article is accurate, it could be an attack from our competitors to put us out of business, we need to make sure the facts there are correct.
If unfortunately the information of the newspaper is correct then we can no longer do business with this company because they are not giving the minimum working conditions for his employees, we outsource our manufacturing to this location to save us costs because we knew the labor was less expensive but we didn’t know they were exploiting people.
We need to look for a new business partner because if we continue doing business with them is like if we approve what we do and this goes against our corporate values.
We are paying enough to the outsource company to pay better wages to their employees, but seems that the owners are taking too much utilities.
Even though we need to compete and try to lower or costs to be ourselves profitable we can’t do this by scarifying people.
We are starting immediately to look for a new business partner and we will be stricter, we need to make sure they pay adequate wages to their employees, and the working conditions need to meet our standards.
Strengths:
We are telling our customers we don’t do business with companies who abuse of labor.
Keep a good image.
Weakness:
We will lose our business partner that made us profitable.
Possible late orders.
Decrease of profits
Opportunities:
Finding a new and better business partner who will work with our standards
Threats:
Competitors will try to steal our customers because we will be late on production.
Competitors will contact the company we stopped doing business to lower their costs.
Strengths:
We are telling our customers we don’t do business with companies who abuse of labor.
Keep a good image.
Weakness:
We will lose our business partner that made us profitable.
Possible late orders.
Decrease of profits
Opportunities:
Finding a new and better business partner who will work with our standards
Threats:
Competitors will try to steal our customers because we will be late on production.
Competitors will contact the company we stopped doing business to lower their costs.