Legal environment of business | Business & Finance homework help
When making business decisions it is important to consider all the potential risks &benefits associated with each option. In this particular case, there are both advantages &disadvantages to manufacturing shoes in Indonesia. On one hand, outsourcing production may lead to higher profits as labor costs are generally lower in that country . However , this could potentially create a backlash from customers due to unethical working conditions or violation of human rights which could damage the company’s reputation &profitability over time.
Therefore, it is important for companies to weigh these considerations carefully before committing to any particular decision. One alternative would be for the company to find another country where labor costs are still low but without the same potential negative publicity risk . Additionally , they can also look into other cost-saving measures such as using recycled materials or implementing energy efficient production processes in order minimize overall expenditures while still maintaining a high level of quality control.
Overall , while there are pros &cons associated with either choice, it is up to each individual organization decide what will best meet their needs ! With careful analysis and planning they can develop strategies that help maximize profits while mitigating any potential risks