Idg2 - Implementation

Critical Issues The critical issues that relate to the International Decorative crackpot case argon as follows: i. IDG currently has two pole product facilities, one in Canada and one in China, both of which are operating at capacity. To keep up with change magnitude request for their product in the US IDG needs to laid off their capacity. ii. IDGs relies to a great extent on its foreign subsidiary Century nut case turn up in China. Because of its geographic location Century exposes IDG to great operating(a) risk. The Chinese political environment is volatile and in that deference are concerns that anything from an increase in tariffs to an outright ban on exports could occur. This would have a huge negative effect on IDG. iii. In assign to efficiently operate in China, IDG relies hard on the political connections of Centurys owners. Currently, this allows IDG to bypass umpteen of the bureaucratic and logistical issues that would otherwise greatly i ncrease their pass time. However, it also gives Century vast supplier power over IDG, therefore, exposing IDG to significant risk. iv. IDG is currently facing cash flow issues. With a cash balance of only $1,000 IDG will likely confuse to meet its current liabilities in the upcoming year and may become illiquid.

Analysis Current Situation IDG has found itself in a business office whereby it is turning customers away because it does non have the capacity to fill up their needs. In addition, it is anticipate that the US market will draw out to lard to the point that it is expected to more than loo k-alike in the following five years. As suc! h, it is vitally important that IDG expand its operations in order to meet this demand and see the telephoners continued profitability in the long-run. Because of postgraduate tariffs on imports into the US from China IDG has been able to success copiousy leverage its law of proximity to the US border with its ability to produce at a low cost via production in China. IDG has firm to double its capacity and has investigated three...If you want to get a full essay, order it on our website: BestEssayCheap.com

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