Buy custom For Sale Magnets, Inc. Fmsi Mba Case
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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1092 |
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However, business is business. If the existing suppliers cannot compete on price and production rates for large orders, FSMI has no other choice but to select a supplier with the best cost margins and lowest lead time. For client orders as large as Car Trader or Shop Co., savings of pennies per piece will have a monumental effect on the bottom line for FSMI...
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For the existing small customers, FSMI should maintain the same suppliers as the order sizes would not justify the costs of foreign production.
Question 4: Would a domestic partner be able to offer the economics of scale to reduce their production to meet Shop Co.’s cost parameters, or would an overseas partner be a better chance?
Due to the low production costs of foreign countries, domestic producers would not be able to offer the economies of scale over an extended period of time that foreign partners would be able to offer...
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