Premium Essay

Make vs Buy

In: Business and Management

Submitted By tingkle
Words 528
Pages 3
Make Versus Buy Case ABC Ltd. is a manufacturing company engaged in the manufacturing of valves. They have been in the business for last 3 years and have been manufacturing only one type of valves. They started their business initially with sales of 10,000 valves per month and now they have grown the volume to about 50,000 valves per month. They have been buying all the raw material for the valve and were doing all the manufacturing in house.
Now they have established themselves in the market and are planning to expand and produce different varieties of valves. They have their plant in the main city and the total area of the plant is 50,000 sq. ft. Now if they want to expand and continue doing all the activities of manufacturing of all the varieties in house, they would need another 50,000 sq.ft. of the area. In the recent times, the land prices in the area have more than doubled in the last 3 years and still land is available with great difficulty. Mr. Mohan is the production head of ABC Ltd. and has been successful with the production and the level is continuously increasing. But in recent times, he is facing the problem of quality complaints which have gone up from average 0.2 % in previous 2 years to 0.5 % this year. Also, he is finding that there is a high level of dissatisfaction among the workers regarding workload as well as salary levels. The workers are regularly complaining about the over work. Although, Mr. Mohan has found that the workers have been spending lot of time on tea breaks, lunch breaks and even in between the production spending lot of time talking to each other. But, due to insufficient workers and staff, he is unable to take strict action and the workers are taking advantage of this situation. For completing the work and delivering the products timely, he has to employ workers on overtime and...

Similar Documents

Premium Essay

Make vs Buy

...Make vs. Buy Revisited Reassessing your company’s manufacturing strategy M ake or buy? The classic manufacturing question still has no easy answer. Amid signs of demand recovery, but with capital still limited and resources thinned by restructuring, top executives today are revisiting the issue. To come to the right make-or-buy decision, leading companies resist the temptation to “feed the beast.” Instead of focusing only on short-term gains, these leaders keep their long-term strategy and corresponding core competencies in mind. They adopt a clearly defined manufacturing strategy, and then adopt the right tactics that can lead to smart decisions and a competitive advantage. The trade-offs between making a product inhouse and buying it externally are well known to most senior executives. The “buy” approach— a manufacturer purchasing a necessary part from an outside source—frees up resources, reduces capital demands, increases flexibility and improves returns on capital employed, but in a tough market companies may seek to avoid potential quality concerns and supply risks. On the other hand, a “make” approach—developing and building that same necessary part internally—enables the company to utilize available internal capacity, absorb fixed costs and protect intellectual property, but it can lead to unnecessary complexity and divert time and attention away from highervalue activities. Choosing “make” simply because the capacity already exists, or......

Words: 3530 - Pages: 15

Premium Essay

Make vs Buy

...Abstract       In my research, based on the information given but in my own words, I will explain what approaches to recruiting might be best suited for Apple’s talent acquisition.   I will suggest three ways that Apple can effectively plan HR resources, and rank them in order of cost implementation.   I will also discuss the benefits that forecasting provides for Apple.   Lastly, I will state why you I agree or disagree that this is a necessary first step in all HR resource planning. Based on the information given but in your own words, explain what approaches to recruiting might be best suited for Apple’s talent acquisition.   The best recruiting approach for Apple would have to be an employment agency, especially for their engineering based positions.   Apple is known as an innovative force and it is important that employees keep their secrets confidential.   In regards to entry level positions, I would suggest Apple try recent college graduates and/or colleges and Universities.   If Apple chooses to use Universities and recent college graduates they would get some of the newest and freshest ideas on the market, keeping in line with their innovative way of thinking. Describe the recruiter traits and behaviors that would lead to the most successful recruiting campaign for Apple.   Recruiter traits for Apple would have to include, being knowledgeable about Apple’s products, culture and mission.   Apple has a reputation to uphold and the recruiters can bring no less to...

Words: 288 - Pages: 2

Premium Essay

Make vs Buy

...Make versus Buy The Liquid Chemical Company manufactures and sells a range of high-grade products. Many of these products require careful packaging. The company has a special patented lining made that it uses in specially designed packing containers. The lining uses a special material known as GHL. The firm operates a department that maintains and repairs its packing containers to keep them in good condition and that builds new ones to replace units that are damaged beyond repair. Mr. Walsh, the general manager, has for some time suspected that the firm might save money and get equally good service by buying its containers from an outside source. After careful inquiries, he has approached a firm specializing in container production, Packages, Inc., and asked for a quotation. At the same time, he asked Mr. Dyer, his chief accountant, to let him have an up-to-date statement of the costs of operating the container department. Within a few days, the quotation from Packages, Inc., arrived. The firm proposed to supply all the new containers required—at that time, running at the rate of 3,000 per year—for $1,250,000 a year, the contract to run for a guaranteed term of five years and thereafter renewable from year to year. If the number of containers required increased, the contract price would increase proportionally. Packages, Inc., also proposed to perform all maintenance and repair work on existing packaging containers for a sum of $375,000 a year, on the same contract terms. ...

Words: 1197 - Pages: 5

Free Essay

Apple Make vs. Buy Decision

...Running Head: Apple’s Make-vs.-Buy Decision Apple’s Make-vs.-Buy Decision Apple’s best approach regarding hiring employees for their top technology or engineering positions would be private employment agencies. Since there is a huge secrecy that surrounds Apple’s products, employment agents have the ability to bring in the right fit candidates for Apple’s top positions. In regards to Apple’s entry level positions, recruiting at Colleges and Universities would be an successful and inexpensive tactic. Apple is a company which will continuously stay on the leading edge in new technology ideas. Therefore, it is extremely important for Apple to stay fresh with new perspectives and ideas. With this being the case, Apple shouldn’t only source their talent from internal sources such as referrals or all internal promotions. Internal sourcing can show growth and have succession planning in any company, but it shouldn’t be Apple’s one and only source of growth because it may limit new ideas and innovations from coming to the table from external experiences. In order for Apple to draw interest from the best talent, Apple must have the best talent searching for the best talent. The recruiters must be savvy and knowledgeable about Apple products. An individual who applies for a position most likely has...

Words: 643 - Pages: 3

Premium Essay

Apple's Make vs Buy Decision

...“Apple’s Make vs. Buy Decision” Instructor: Matthew Gonzalez Course: Human Resource Management Foundation Date: April 27, 2012 Abstract In my research, based on the information given but in my own words, I will explain what approaches to recruiting might be best suited for Apple’s talent acquisition. I will suggest three ways that Apple can effectively plan HR resources, and rank them in order of cost implementation. I will also discuss the benefits that forecasting provides for Apple. Lastly, I will state why you I agree or disagree that this is a necessary first step in all HR resource planning. Based on the information given but in your own words, explain what approaches to recruiting might be best suited for Apple’s talent acquisition. The best recruiting approach for Apple would have to be an employment agency, especially for their engineering based positions. Apple is known as an innovative force and it is important that employees keep their secrets confidential. In regards to entry level positions, I would suggest Apple try recent college graduates and/or colleges and Universities. If Apple chooses to use Universities and recent college graduates they would get some of the newest and freshest ideas on the market, keeping in line with their innovative way of thinking. Describe the recruiter traits and behaviors that would lead to the most successful......

Words: 754 - Pages: 4

Premium Essay

Apple’s Make-vs.-Buy Decision

...Apple’s Make-vs.-Buy Decision HRM 500 HR Management Foundations Apple’s Make-vs.-Buy Decision Recruitment Approaches for Apple Apple would be best served with sourcing recruitment efforts from private employment agencies for their top technology or engineering positions. Considering the secrecy that surrounds Apple products, head hunters would be able to source out potential right fit candidates for Apple’s top positions. For their more entry level tiers, recruitment efforts at Colleges and Universities would be an effective and affordable approach. Apple also will have its fair share of direct applicants, considering the fact that it is very trendy and appeals to all consumers. As stated in the NY times, it has “cast a spell” on consumers and investors. When visiting Apple’s website for careers, the page is appealing and full of promise for not just any job, but a career. Apple is a company that is going to always stay on the frontier of new ideas. In order to do this, it is important to stay fresh with new perspectives and ideas. With this being the case, Apple would want to not only source their talent from internal sources such as referrals or all internal promotions. It is important to show growth and have succession planning in any company, but it should not be the sole source of growth as it might limit new ideas and innovations from coming to the table from outside experiences. Recruiter traits and......

Words: 1256 - Pages: 6

Premium Essay

Apple’s Make-vs.-Buy Decision

...Recruitment Approaches for Apple Apple would be best served with sourcing recruitment efforts from private employment agencies for their top technology or engineering positions. Considering the secrecy that surrounds Apple products, head hunters would be able to source out potential right fit candidates for Apple's top positions. For their more entry level tiers, recruitment efforts at Colleges and Universities would be an effective and affordable approach. Apple also will have its fair share of direct applicants, considering the fact that it is very trendy and appeals to all consumers. As stated in the NY times, it has "cast a spell" on consumers and investors. When visiting Apple's website for careers, the page is appealing and full of promise for not just any job, but a career. Apple is a company that is going to always stay on the frontier of new ideas. In order to do this, it is important to stay fresh with new perspectives and ideas. With this being the case, Apple would want to not only source their talent from internal sources such as referrals or all internal promotions. It is important to show growth and have succession planning in any company, but it should not be the sole source of growth as it might limit new ideas and innovations from coming to the table from outside experiences. Recruiter traits and behaviors that would lead to a successful recruiting campaign for Apple Recruiters for Apple would have to have both the talent of being warm,......

Words: 1197 - Pages: 5

Premium Essay

Apple’s Make-vs.-Buy Decision

...Based on the information given but in your own words, explain what approaches to recruiting might be best suited for Apple’s talent acquisition. The Approach that Apple applies to acquisitions staff is innovative. Not all companies have the opportunity to buy other companies to ensure the acquisition of qualified personnel and also have the ability to hire all employees no matter where they work or how much is the salary. This method of "if I want it, I have it", it can only be applied by a company with great economic resources and human resources with a solid structure that attracts employees with excellent skills. Apple has shown this to the forefront of technology and apply that technology to find talent, not only looking for people who want a log file of talent, but organizes job fairs, web sites preparing to list jobs and choose resumes of potential employees, but also hire people quickly, Apple is capable of buying companies to ensure the right people. The Human Resources department of Apple applies all the steps in the process of human resource planning, but in a way to match the technology, using all the technological tools available on the Internet and using innovative methods that are effective. Describe the recruiter traits and behaviors that would lead to the most successful recruiting campaign for Apple. The information presented on the case study shows that Apple has been doing a job of recruiting new talent. Apple is a company at the forefront and......

Words: 1417 - Pages: 6

Premium Essay

Case: Apple's Make-vs.-Buy Decision

...Case: Apple’s Make-vs.-Buy Decision In a turnaround from a trend in which high-tech (and other) manufacturers have outsourced the making of important components in order to increase efficiency and focus on what they do best, Apple has recently made moves that seem aimed at bringing the design of microchips back in-house. Apple is known for innovative design, and along with that, it tends to keep details of what it makes highly secret. Making chip design a company process, rather than a product to buy, gives Apple more control over the process-and over the secrecy. Of course, the decision to handle its own development has huge implications for human resource management. The company needs all-new labor forecasts, a larger labor force, and an intense push to bring in technical talent. Recently, Apple has been hiring many new engineers. Products they could be assigned to include microchips that require less power to operate iPhones and iTouch devices, as well as circuitry to improve the graphics displayed in games and videos played on its devices. A top-notch team could, at least in theory, come up with unique improvements that will take rivals by surprise. One way to acquire a lot of talent fast is to acquire entire companies and make them part of Apple. And that’s one move Apple has been making. The company recently acquired P.A. Semi, a start-up company that designs microchips. Its products could be used to run iPhones and iPods. Observers are guessing that chips......

Words: 511 - Pages: 3

Premium Essay

Build or Buy

...To Build or Buy: Making decisions about Infrastructure and Applications Table of Contents Title Page1 Table of Contents2 Executive Summary3 The Asset Management Lifecycle and the Five Decisions4 Asset Lifecycle Management4 The Five Decisions4 Building versus Buying5 Building Software6 Building Pros & Cons6 Buying Software6 Buying Pros & Cons6 Making Decisions7 Ranking and Conclusion8 References10 Executive Summary While rapid advances in technology have opened an almost infinite number of possibilities for today’s businesses, organizations are typically challenged to exploit the latest trends to drive growth and market share. Our study found an important link between effective software development and the ability to successfully capitalize on today’s emerging technologies for competitive advantage. Advances in technology are growing rapidly and organizations are constantly trying to find ways stay ahead in the market and make profits. Organizations are now challenged to either buy off-the-shelf software or build customized software for their company in order to achieve a competitive advantage. Each choice yields its own pros and cons so there is no automatically correct decision. The choice that fits best lies in the goals of the company. In order to decide what is best for your company, the CIO needs to understand what it means to buy and what it means to build. Buying software ensures that the product has been tested and used by others.......

Words: 2969 - Pages: 12

Premium Essay

Apple vs Buy

...1 Apple’s Make vs. Buy Decision Tanjaneka Guy Dr. Robert Waldo Human Resource Management Foundations – HRM 500 October 29, 2011 Apple’s Make vs. Buy Decision 2 Best approaches to Recruiting Recruiting can include giving proper interviews. Human Resources recruitment is to build a supply of potential new hires that the organization can draw on if the need arises. Public employment agencies allows employees to register their job vacancies with their local state employment office, and the agency will try to find someone suitable, using its computerized inventory of local unemployed individuals. With rapid growth of internet use, it is becoming more important that a research site have a presence on the World Wide Web. Internet recruiting definitely would be valuable and best suited for Apple’s talent acquisition. Describe the recruiter traits and behaviors leading to successful recruiting The most successful recruiting campaign requires (1) Interaction – The ideal recruiter is able to communicate with others in a warm and helpful manner while building credibility. (2) Spoken communication – The ideal recruiter is able to present information clearly through spoken word. (3) Commitment to task – The ideal recruiter is able to start and persist with specific courses of action while exhibiting a high degree of self motivation and a sense of urgency. (4) Must have insight and need analysis.......

Words: 725 - Pages: 3

Premium Essay

Renting vs Buying

...Renting Vs. Homeownership Jasmyn Gould ECPI University Online Thesis: Most people would either like to rent or become a homeowner, but there are several factors that need to be address before making the decision; these reasons include financial status, lifestyle, tax deductions, privacy, commitment, savings, utility cost, and a whole lot of research. Today’s housing market is on the rise, so this is the time to jump in or is it? You are probably asking, what advantages do I have if I purchase a home or rent? What would be better for me financially? It is important to know some facts of renting vs. homeownership before making such an important decision. Homeownership is not for everyone. I believe it’s up to the individual if they want to rent or buy. In some cases people are just better off renting. Before buying a home, it’s important to consider how that purchase will affect your finances and your lifestyle. Homes typically increase in value by allowing you to build equity in it, which will offer an investment for the future. Every time a mortgage payment is made, it is applied to your balance which reduces the loan that was taken out. Your monthly costs are usually more predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. Which means, the monthly amount of your mortgage will not increase for the duration of the loan. An article from TurboTax said (2013), “You know that you can get an income tax deduction on the......

Words: 1140 - Pages: 5

Free Essay

Super Market Survey

...Alicia Oard FDSCI 302 April 14, 2013 SUPERMARKET SURVEY While living off-campus, I’ve realized that there lies a whole nether world where students must buy their own groceries based on price, bang for your buck, and of course, taste. Who knew the fridge didn’t magically create ranch dressing?! Well, I was on my weekly grocery shopping stroll to Wal-Mart when I decided, maybe instead of people watching I should try and compare my groceries to see what I am actually buying! So I slipped out my notepad, clicked my pen and I was off to the produce section to start my raid. OREOS VS. MEGA STUFF OREOS: As I approached the produce section, I nearly collided into the enormous, radiant, mass of NEW Oreo Mega Stuffs. Supermarket stockers specialize in making bold displays to lure in consumers, enticing impulse buys. While gazing in awe at the empire state building of cookies, I realized that there were also a few other varieties hidden in the mound. The original Oreos were tucked around the corner below eye level. Most packages were very similar; same color, same font, yet the font sizes were significantly larger on the Oreo Mega Stuffs. If one was not paying attention and grabbing their weekly drug dose of milk and cookies, they may have grabbed the wrong type. Although, if someone were to take time and look at both packages, they would conclude that both the Oreo Regular and Oreo Mega Stuff were composed of the same ingredients and additionally the same price. However the......

Words: 2046 - Pages: 9

Premium Essay

Lease vs. Buy (Equipment/Real Estate)

...Contents Lease Vs. Buy Laid in Excel Spreadsheet1 Advantages to Lease Vs. Buy 2 Advantages of Using a Longer Time Table Rather Than Shorter 3 Real Estate Depreciation 4 Works Cited………………………………………………………………………………………………………………………………….……….5 Excel Spreadsheet Showing Table and Work. Advantages of Lease Vs. Buy The decision to lease or buy equipment or real estate is very important one. One of the most obvious draw backs to leasing versus buying is that, at the end of the lease, the organization does not own the equipment or real estate. The primary advantage to leasing is that it conserves cash for other business operations. Additionally, leasing allows the organization to expense some of the maintanence costs and provides superior tax benefits. Leasing allows for the organization to more efficiently keep up with technology advantages. In reference to real estate, the lease offers the option to change locations if necessary. Moreover, many of the maintenance costs fall on the owner and not the leaser. (Park, 2011) Advantages of Using a Longer Time Table Rather Than Shorter Particularly with real estate investments, a longer period than the four years used in this scenario might prove to be more accurate. While the real estate market is not particularly good now, a change in that area might make the initial investment actually have returns. The cyclical nature of this particular market may contribute to a more favorable outcome in the lease versus buy......

Words: 409 - Pages: 2

Premium Essay

Mktg - vs Pink Case

...classifies the brand as "loungewear" that is young, hip and casual. There are quite a few items, especially panties that are definitely not casual. They are made of lace and barely have any material that covers the body. They look very controversial. Some panties also have wording that various customers may interpret differently, wording such as "tonight's the Night" on front of the panties, or "Have Fun" on the back of the panties. The PINK merchandise shown on the VS website and in the catalogs is advertised by younger models that are posing very sexy and revealing. Their looks are not for young girls to look at. The young customers will look up to the models and try to look like them and that's not right as the tween girls are too young to be exposed to such a provocative advertising (victoriassecret.com). These types of merchandise are definitely not for young girls. I do agree that the brand should be geared toward 18-30 year old women. At that age the woman understands the products she purchases and can make better choices. The clothes that customers wear are reflections of who they are and other people may judge the customer by the clothes she wears. Young girls that wear PINK may be perceived to be older than they actually are. As a mother I...

Words: 1160 - Pages: 5