¶ … outsourcing decision in the Rondot Automotive case on pages 132-133 in the textbook. If you were in the position of Glenn Northcott, what would be your analysis of the opportunity to outsource painting for housings to Greven? What recommendations would you make to Terry Gibson and Dick Taylor and why?
In developing your answer, consider the following:
What reasons, other than financial factors, need to be taken into account in this decision?
As a company known for providing outstanding products, Rondot Automotive has a reputation it must uphold. When a company outsources any aspect of its operations, it loses a degree of oversight over the quality control of that component of the production process. Rondot cannot simply look at the bottom line in terms of money saved from outsourcing. It must also consider if the quality offered by the other company is the same and/or superior to the expected quality of the painting customers expect from Rondot. If it is inferior, Rondot must calculate how much this will negatively impact customer sales. However, in the case of Greven, the quality of...
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