Make-Or-Buy Decision at Baxter Manufacturing Case Study

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The main argument in favor of this solution is the time efficiency it generates. The purchased application will be installed in the shortest possible time, whereas the installation of the internally developed software will only be possible in two years time. The company does not have two years to spend on waiting around for a better customized solution, as it is already threatened by the potential loss of customers due to an inadequate information system.

The second reason is that of the financial costs implied, in the meaning that the already developed application is more cost effective. Considering however that the managerial team finds it difficult to part with the perceived advantages of the internally developed solution, a compromise could be made in that of using the application from EMS for the time being, and based on the improved financial results it would generate, to construct a special budget, designated to support the internal development of a better fitted application.

This middle solution would only be possible if the company made a high return on investment and was as such able to increase its profits so it afforded to save more. This is however one of the toughest challenges of a small size entity -- its lack of sufficient financial resources.

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Despite the fact that they would identify the best solution, they would not be able to implement it due to financial constraints. Another shortage it has in relationship to the Fortune 500 companies is its reduced reputation. Even if the company is positively recognized within the community, foreign support would be impeded by the territorially restricted actions of the entity.

Then, since they do not have sufficient resources, they will also be unable to support the development of communities through donations or other such, and would not be able to capitalize on their reputation. Finally, pegged to the lack of reputation and financial resources, is the lack of adequately trained and skilled staff members (Vinten, 1998). All these materialize in limited development opportunities......

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Latest APA Format (6th edition)

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"Make-Or-Buy Decision At Baxter Manufacturing" (2010, January 15) Retrieved June 13, 2026, from
https://www.aceyourpaper.com/essays/make-buy-decision-baxter-manufacturing-15792

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"Make-Or-Buy Decision At Baxter Manufacturing", 15 January 2010, Accessed.13 June. 2026,
https://www.aceyourpaper.com/essays/make-buy-decision-baxter-manufacturing-15792
   

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