Problem: You have been approached by the senior managers of Lartor, a high-tech company, to advise them on whether to outsource the production of a range of new electronic video products that are currently under development to foreign manufacturers or whether to establish a foreign subsidiary to manufacture its own. While keeping manufacturing costs low is important, quality product is very important as well and specifications will need to be tailored to suit the needs of many different countries.
1) What forces in the environment will be the most important to analyze to decide which is the best manufacturing option?
2) What kind of management and information system will you need to make sure Lartor has sufficient control over cost and quality?