The Problem Of A Ceo Of Our Sensor Company

923 WordsFeb 21, 20164 Pages
As CEO of our sensor company, it has come to my attention that we are faced with an escalating problem of balancing increasing demand, working capital limitations, and constrained manufacturing output. Many of our top executives have been relaying their reservations about our offshore suppliers, while others have been leaning towards expanding our dependence on them. With this information in mind, as CEO, it would seem the best way to move forward is to expand our offshore supplier, but also reinvest in monitoring and support tenfold as well as develop possible alternative suppliers. It is clear that our demand is steadily rising and our current production overseas will not be able to keep up for long. As our Vice President of Production pointed out, this increase is predominately overseas where our current suppliers’ material and labor costs are lower and their location makes shipping domestic sensors unprofitable. It is very important that we increase our capacity for if we don’t we will lose this growing market before we even get a chance to enter it. So now the question becomes how do we expand our overseas production? At the moment, we have a supplier that can currently meet demand and is in a position to expand to meet this increasing demand. This supplier has also had three brushes with their country’s labor law enforcers. In addition, if this supplier is caught one more time we have to break ties with the supplier. The legal costs for this are roughly 3%, but
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