A multinational organization in China has experienced dramatic growth in the past two years. Recently, the executive staff has been reading about outsourcing costs, and they want to renegotiate their contract with Outsourcing Company. For Outsourcing Company, this is the largest client and the third request to renegotiate the contract and reduce the price. Accepting the offer guarantees a large client but reduces the likelihood to accept new clients because of the demanding workload for the staff. Not accepting the offer to renegotiate the contract could result in releasing a significant number of employees and suffering a loss for the next two years, unless Outsourcing Company can land another large client. So, risk is involved. As the international management team, you have been tasked to consider all of the associated variables and choose the course of action that best supports Outsourcing Company. Should Outsourcing Company accept the offer and maintain the contract, or do you have an alternative suggestion? Negotiate among yourselves, the international management team for Outsourcing Company, for the best solution. Support your negotiations with an explanation.
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