Mabuhay Pumps Company has manufactured high quality residential pumps for over 20 years. The firm has always been profitable and relied on home grown talents who have worked with MPC since 15 years ago. The BOD is composed mainly of closed relatives of the founders who have either passed away with a couple of outsiders.
Point of View
Knowing that MPC is popularly known for their home grown talents, quality products, and trusted specialization in creating residential pumps and have recently established their own a foundry to cast pump housings and assortment fittings to prove their mastery in their line of business, it would be difficult for Renzo to point out that outsourcing their…show more content… 3. Push through with the outsourcing and assign their employees still in their specialization which is production, by using the saved money in developing a new line of agricultural and mining pumps
› PROS: The company can keep the loyalty and
skills of the employees, avoid any intercompany conflict, gain more customers, become more attractive to the market, introduce a new product line, save more money, ensure the quality of the pump housings, and be more competitive to the market. › CONS: mishandling may lead to negative impact in the company
Presentation of Alternative
Course of Action
Alternative 3 is the chosen alternative course action since it has more Pros than Cons and could arise with more benefits than Risks.
› Proper segregation of duties and Management
assignment for monitoring the outsourced goods and further background check on ATF
› Assignment of personnel in charge of the monetary reserves to be incurred as the result of outsourcing, it should ne notified that there saved money shall be use for the mining and agricultural pumps development ›