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Homework answers / question archive / PART 1   You are President of a national toy manufacturing company that has numerous production and manufacturing facilities here in the USA and Europe

PART 1   You are President of a national toy manufacturing company that has numerous production and manufacturing facilities here in the USA and Europe

Management

PART 1

 


You are President of a national toy manufacturing company that has numerous production and manufacturing facilities here in the USA and Europe.  You are approached by a company from Indonesia that says it can provide all of the component toy parts at its plants in Indonesia at one tenth the cost of production of the parts in the USA, and that they then can be thereafter assembled here in the USA, still saving the company 50% of its overall manufacturing costs.  However, you know that this Indonesia company employs women who earn only $100 per month and work 10 hour days 6 days per week.  Your company has always put a Made In the USA label on its toys.  You intend on still doing that.  Your company has an excellent reputation for making "clean toys", no toxic materials, lead paints, or similar components.  Since most of your competitors have engaged in similar decisions you are under pressure to make this move for higher profits.  What issues should you consider in making this decision?  Who are the "stakeholders" and how will they be affected if at all?

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