RM3003 - Problem 2 The General Manager image Furniture reviewed your purchasing team's reguition to see materials and components from a list of potential appliers recommended earlier bee Problem 11. Your team also recommended a preferred supplier for them to be purchased However, you General Manager wants your decision to be clarified further before your recommendation are proved by the President Duter and before the Orden prepared The Presiden started Image Office Furniture in 1958 and right control of pedof the company inportant to him. He is a very demanding and sold style leader who started his business in an era when a company and most everything in house and only wedle when it will about ce The President's views reflected in the company three objectives, which are ta theme of our customers with outstanding product quality and service 2. Designed brodes that meet owner's need for comfort and efficiency Conduct our operation with unparalleled efficiency, coat contrato the highest standard of our quality management system The competitive pressures especially from lower cost suppliers in China and India as well as improvements manufacturing technologies over the years, has forced any firms to be extremely efficient was focus on what they do best over what they cannot do as well as the firm During strateg review in 1990. Image Office and the core competencies more closely with its strategies and chose to focus on instabrication bet. For image meant cuting bending, stamping ring and welding a steel the core components of their ce future as well as the hinges of their product induding firewood working in and by and package for delivery. The company has invested version dollars in the past two decades to make these process world class Once the President accepted these competencies hoe has led them rigorously. However, due to increase competitive pressure, berow Guestions whether therapects of what they do can be Consequently, with respect to the terms that your team was to purchase from outside woolersin Problem 1. the President stow questioning two spects of the earlier dechin 1 whether the whole de top should be made and finished by an outside and piled to image ready to stall rather than purchasing the raw hood and rishing in 2. the raw steel on length) should be supplied to make cut to the company's required length The General Manager on the other hand is concerned about the posibility of outsourcing these dem. First sed upon an in all the difference in cost for producing the components in S. for eached topadice for the cut steel. The GM feel that inage should maintain control of these terms to adhere to destrictality porements and look for efficiencies in these in house processes to reduce the contro The President's argument based strictly on cost is that the cost is too great to overcome especially for the desktop For the moment you we to assume that the cost comect your team must therefore produce the following brie report for the General Manager and the President that include 1 A review of your decisions to purchase the road why make) versus a decision to purchase and deste toomade to your specifications why buy. Your review MUST contain a list of who make or wybor Natements for this item. Your intents should be based upon the information provided into was as information found two grout this cate wil ny other toniderations your group in carcere that would logically sply to this cony. Anyonal company features MUST be justified Page 1 of 5 2 Aww of your dechian to purchew the best why materacion to purcha the tubular steelwrecut to your specific requirements why buy. Your review MUST contain a list of why wake or why by statements for this lem. Your list of statements should be based upon the fomotion provided Problem. As well as information found toughout this case as well as any other considerations you can conceive that would locally apply to the company. Any additional company features MUST be tied 3.Since the President and the Guy decide to purchase these components from an avide sourced upon your review prepare fint for each of the item (desktop and tubulatee of the important specifications that must be met by a possible supplier if you did outsource them. Therefore it the decisions to purchase these from an outside water our company will be able to coept the componenten compliance with your quality standards and ready to be wached to the desk you are assembling NOTE: the list and specifications MUST be related to the scenario and NOT be' Generic statements. This report should NOT include the casters or end caps