Executive Decision Making Essay Example | Topics and Well Written Essays - 6000 words

Executive Decision Making - taste ExampleIt would be necessary in the first place constructing a contract to determine whether the supplier allow for indirect request such advances and then weigh this against operational be of the business model.Furthermore, if the covenant between the supplier and the allocator is not going to be long-lived, contracts may ask for some variety of reimbursement related to the tooling cost to digest the distributors demand. This could be non-beneficial for a smaller organization that might be struggling to obtain profit. Any and all expenses must be considered before seeking foreign sourcing opportunities.If the supplier is chosen will be a partner for a multi-year relationship, then issues of potential pricing must be weighed before making this decision. Costs of manufacturing are influenced by changing labor wage rates and fluctuating prices of painful materials in the global supply chain. It wad be difficult to establish an appropriate pri cing agreement under a long duration contract as it is not easy to predict what costs will be incurred in the future. The vendor could, in the future, demand a higher price (which can be rejected by the distributor) which could terminate the contract. This would puzzle disadvantages as it takes time for supplier partners to understand the require of their client and alter manufacturing to fit distributor needs. Hence, in a price dispute, it could lead to further costs in identifying an alternative supplier.Additionally, fruit liability is a major concern for companies seeking overseas sourcing. at that place is a substantial risk that consumers purchasing products made in a foreign nation could have personal injuries as a result of using the foreign-made product or property damage if the product happens to be.