Question: Answer the below questions from this case: ABDULLAH & Sons Ltd. is a manufacturing company engaged in the manufacturing and marketing of plugs in and
Answer the below questions from this case: "ABDULLAH & Sons Ltd. is a manufacturing company engaged in the manufacturing and marketing of plugs in and around KSA. This company is known for its Quality focused policies and core competencies alongside they have good control on reverse logistics. They have been in the business for last 5 years and have been manufacturing only one type of plugs. They started their business initially with sales of 5,000 plugs per month and now they have grown the volume to about 50,000 plugs 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 plugs. They have their plant in Riyadh 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 of plugs 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 5 years and still land is available with great difficulty. Also, their marketing department identified that the potential for global market is expanding rapidly and it is the good time if the company goes for expansion of its market. Mr. Abdullah is the CEO of ABDULLAH & Sons Ltd. and has been successful record of accomplishment in understanding the business and operations. This developed situation is very exciting and challenging for Abdullah as he has to understand many factors before planning and execution. He then realized the strength and core competencies of its organization , ABDULLAH & Sons Ltd. Is purely engineering driven company and he has good confidence on its supply chain unit but there was one cost related concern from the vendors." Q-1 Based on above information, is it economical for ABDULLAH & Sons Ltd. to go for buying the product from market or manufacturing in house. Q-2 What other factors should ABDULLAH & Sons Ltd. look at before making this decision to sell its product to global market and how companys image will help in expansion plan?
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