Garland Chocolates: Case Study: Garland Chocolates

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Alternative 3 Another solution that Garland Chocolates can look at is to buy a machine that costs less or does half of the work and outsource to finish the product. By doing half the work they are saving time and money. Advantages Buying a machine that can do half the work will cost less for the company. It will take them less time to produce the candy. Outsourcing the rest of the production will create more jobs in an undeveloped country as well as save money for Garland Chocolates. Disadvantages Even though you save money on the equipment, you have to consider the risks. By outsourcing half of the work the company is now risking the quality of the candy. Outsourcing to the wrong area can decrease product quality which can result in a decrease in the brand image. Recommendation: Alternative 1: The best solution for Garland Chocolates is to invest in the new equipment. Their old equipment is 20 years old which is when the machinery can be replaced. It has been able to serve them for so long but the maintenance of the old equipment will get very pricey very fast. Justification for recommendation Once you replace the equipment you can get that money back in revenue. If the equipment is replaced then output can increase because of the increased efficiency. The new machinery will pay itself off. In the long-term, Garland Chocolates save on risks. They are not relying on another company by outsourcing. They also save the brand image by keeping the manufacturing in

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