'Alicia Wong Case Essay\r'

'Alicia Wong has to consider numerous things in front deciding whether she should fall upon the table gai choi in ho mapping or outwardly. If the mustard she buys externally from TFL, Thain Foods would be spending on amount about $.54 cents per litre. While this doesn’t depend that much on a teentsy scale, overtime the cost begins to add up. In addition, the club would only spend $.46 per liter when producing in house. With an average order of 100,000 liters, Thain Foods forget save around $7.920 per order. Overall per year, the club allow save around $96,000 by just saving $.08 per liter. Making the mustard inbornly can provide many benefits. One of the undercoats to stick internally would be because of the cost. As previously stated, the partnership would irritate about $8,000 per order. By saving that money, the union can save the consumer money by cutting the price or by gaining additional profit. A nonher reason to solve would be in order to nullify so le source dependency. The company will be able to search for the better supplier for all of the raw materials for the trump out price. Instead of allowing another company to tell on deals for the raw materials, the larger company could use its weight to leverage for better prices.\r\nAlso, by making internally the workers would no drawn-out lack to carry and rinse the drums. No longer would a contractor subscribe to come in to wash the drums for the company. Rather, the company could find other purposes for the drums efficiently. Another reason is the production has time and equipment to make the mustard. either of the items are in place to make the mustard without any further workers or contractors necessary. Finally, the company could ensure whole step assurance. electromotive force risk can be eliminated because the company knows consumely what’s happening with the quality of the mustard and what needs to be make to fix any potential problems Although in that r espect are many reasons to make the mustard, at that place are also many reasons not to. First of all, the modify from external to internal may hurt to quality or taste of the product. For example, the way TFL mixes the raw materials and makes the mustard could be kept a secret and not allow the company to hold out to make a great product. Thain Foods would need to make sure they know exact recipe and procedures to make the mustard if they were to change from externally to internally. Also, if Thain Foods finds another way to make better mustard they could keep it as a competitive advantage and not worry about their recipe acquire to competitors.\r\n'