Idg2 - Implementation

Critical Issues The critical issues that relate to the International Decorative testicle case argon as follows: i. IDG currently has two terminus product facilities, one in Canada and one in China, both of which are operating at capacity. To keep up with change magnitude request for their product in the US IDG needs to lay off their capacity. ii. IDGs relies to a great extent on its foreign subsidiary Century nut case locate in China. Because of its geographic location Century exposes IDG to great operable risk. The Chinese political environment is volatile and in that repute are concerns that anything from an increase in tariffs to an outright ban on exports could occur. This would have a huge negative effect on IDG. iii. In target to efficiently operate in China, IDG relies heavy on the political connections of Centurys owners. Currently, this allows IDG to bypass umteen of the bureaucratic and logistical issues that would otherwise greatly increa se their go time. However, it also gives Century vast supplier power all over IDG, therefore, exposing IDG to significant risk. iv. IDG is currently facing cash flow issues. With a cash balance of only $1,000 IDG will likely smother to meet its current liabilities in the upcoming year and whitethorn become illiquid.

Analysis Current Situation IDG has found itself in a business office whereby it is turning customers away because it does not have the capacity to fill up their needs. In addition, it is anticipate that the US market will draw out to expound to the point that it is expected to more than bivalent in the con tiguous five years. As such, it is vitally i! mportant that IDG expand its operations in order to meet this demand and see the associations continued profitability in the long-run. Because of postgraduate tariffs on imports into the US from China IDG has been able to success copiousy leverage its proximity to the US border with its ability to produce at a low cost via production in China. IDG has firm to double its capacity and has investigated three...If you want to get a full essay, order it on our website: BestEssayCheap.com

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