Part of a business strategy you are considering involves the reduction of labor and material costs.

Part II

Deliverable Length: 500–750words

Part of a business strategy you are considering involves the reduction of labor and material costs. Your CFO suggested doing some of the manufacturing overseas. The concern in moving some of your manufacturing offshore may be that you achieve lower costs of production but lose quality control (a trademark of your brand) and perhaps even reduce morale in your company by laying off those workers whose jobs were being performed overseas. These are serious issues. You asked your CFO to outline the benefits and disadvantages of doing so in regards to your relationship with your employees, balance sheet, quality, and service. 

Explain 3 additional benefits and 3 additional disadvantages that would concern you and the economy and answer the following questions:

  • What would you conclude?
  • Is there something else you can do with those employees that you would be laying off?

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