Wisconsin Saws (WS) is a chainsaw manufacturer (fictitious) located in southern Wisconsin. WS makes mostly gasoline-powered chainsaws, but plans to soon introduce a line of battery-operated circular saws. Their chainsaws are priced from $250-$1500, which is in line with major competitors in the U.S. market, such as Stihl and Husqvarna. While chainsaws are used primarily for cutting down trees and processing firewood, circular saws are used primarily in construction, such as in framing or roofing a house. In the circular saw market, they face an even larger number of competing brands, such as Craftsman, DeWalt, Skil, Makita, etc. (although these many brands are owned by a handful of parent companies). The price point for these saws typically run between $70-$300, and the vast majority of these saws are made in China or Southeast Asia. For their circular saw line, WS is considering outsourcing the production of these products to a firm in Thailand that also produces circular saws for one of their major competitors, and has been doing so for the past 10 years. This firm they are considering outsourcing production to has a good track record of producing quality saws, and the managers of WS wonder if they have sufficient expertise to build the circular saws themselves (as their expertise is in chainsaw production). However, they are also concerned that outsourcing production, especially to an overseas firm, could be viewed negatively by consumers. Discuss the major benefits that Wisconsin Saws would seem to gain from outsourcing. Then discuss the major risks of outsourcing that would be relevant to Wisconsin Saws in this scenario. Finally, discuss any ethical concerns Wisconsin Saws might face if they decide to outsource, and if there are any possible ways they can minimize these concerns.
Wisconsin Saws (WS) is a chainsaw manufacturer (fictitious) located in southern Wisconsin. WS makes mostly gasoline-powered chainsaws, but plans to soon introduce a line of battery-operated circular saws. Their chainsaws are priced from $250-$1500, which is in line with major competitors in the U.S. market, such as Stihl and Husqvarna. While chainsaws are used primarily for cutting down trees and processing firewood, circular saws are used primarily in construction, such as in framing or roofing a house. In the circular saw market, they face an even larger number of competing brands, such as Craftsman, DeWalt, Skil, Makita, etc. (although these many brands are owned by a handful of parent companies). The price point for these saws typically run between $70-$300, and the vast majority of these saws are made in China or Southeast Asia. For their circular saw line, WS is considering outsourcing the production of these products to a firm in Thailand that also produces circular saws for one of their major competitors, and has been doing so for the past 10 years. This firm they are considering outsourcing production to has a good track record of producing quality saws, and the managers of WS wonder if they have sufficient expertise to build the circular saws themselves (as their expertise is in chainsaw production). However, they are also concerned that outsourcing production, especially to an overseas firm, could be viewed negatively by consumers. Discuss the major benefits that Wisconsin Saws would seem to gain from outsourcing. Then discuss the major risks of outsourcing that would be relevant to Wisconsin Saws in this scenario. Finally, discuss any ethical concerns Wisconsin Saws might face if they decide to outsource, and if there are any possible ways they can minimize these concerns.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Transcribed Image Text:Wisconsin Saws (WS) is a chainsaw manufacturer (fictitious) located in southern Wisconsin. WS makes
mostly gasoline-powered chainsaws, but plans to soon introduce a line of battery-operated circular saws.
Their chainsaws are priced from $250-$1500, which is in line with major competitors in the U.S.
market, such as Stihl and Husqvarna. While chainsaws are used primarily for cutting down trees and
processing firewood, circular saws are used primarily in construction, such as in framing or roofing a
house. In the circular saw market, they face an even larger number of competing brands, such as
Craftsman, DeWalt, Şkil, Makita, etc. (although these many brands are owned by a handful of parent
companies). The price point for these saws typically run between $70-$300, and the vast majority of
these saws are made in China or Southeast Asia.
For their circular saw line, WS is considering outsourcing the production of these products to a firm in
Thailand that also produces circular saws for one of their major competitors, and has been doing so for
the
10 years. This firm they are considering outsourcing production to has a good track record of
past
producing quality saws, and the managers of WS wonder if they have sufficient expertise to build the
circular saws themselves (as their expertise is in chainsaw production). However, they are also
concerned that outsourcing production, especially to an overseas firm, could be viewed negatively by
consumers.
Discuss the major benefits that Wisconsin Saws would seem to gain from Qutsourcing. Then.
discuss the major risks of outsourcing that would be relevant to Wisconsin Saws in this scenario.
Finally, discuss any ethical concerns Wisconsin Saws might face if they decide to outsource, and if
there are any possible ways they can minimize these concerns.
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