Mabuhay Pumps Company
Mabuhay Pumps
Company
CASE ANALYSIS
Introduction
Mabuhay Pumps Company has manufactured high quality residential pumps for over 20 years. The firm has always been profitable and relied on home grown talents who have worked with MPC since 15 years ago. The BOD is composed mainly of closed relatives of the founders who have either passed away with a couple of outsiders.
Point of View
Knowing that MPC is popularly known for their home grown talents, quality products, and trusted specialization in creating residential pumps and have recently established their own a foundry to cast pump housings and assortment fittings to prove their mastery in their line of business, it would be difficult for Renzo to point out that outsourcing their foundry production, would help the company in more ways than they expect, even though it is a huge change from the norm.
Renzo believes that outsourcing will lessen expenses, generate more income and save enough money for future use or plans. The company’s president strongly believes that MCP does not need to outsource products that they are able to produce themselves for this might mean loss of jobs, loss of talents and skills, and negative impact on both employees and the public.
The President also pointed out that MCP has gained recognition from their field without using any means of outsourcing.
Renzo, on the other hand has a firm standpoint on his idea that it would really be beneficial for the company to outsource the pump housings and it would really give the company a little leverage to focus on future projects that is why, I strongly believe that proper strategic management is needed to pursue outsourcing without worrying the president of its possible risks.
Statement of the Problem
Can outsourcing the production of the pump housings produce greater benefits for MPC, than producing its own pump housings and fittings?
Areas of Consideration
Strengths
ATF Housings can be used for the MPC pumps with a 15%
Company
CASE ANALYSIS
Introduction
Mabuhay Pumps Company has manufactured high quality residential pumps for over 20 years. The firm has always been profitable and relied on home grown talents who have worked with MPC since 15 years ago. The BOD is composed mainly of closed relatives of the founders who have either passed away with a couple of outsiders.
Point of View
Knowing that MPC is popularly known for their home grown talents, quality products, and trusted specialization in creating residential pumps and have recently established their own a foundry to cast pump housings and assortment fittings to prove their mastery in their line of business, it would be difficult for Renzo to point out that outsourcing their foundry production, would help the company in more ways than they expect, even though it is a huge change from the norm.
Renzo believes that outsourcing will lessen expenses, generate more income and save enough money for future use or plans. The company’s president strongly believes that MCP does not need to outsource products that they are able to produce themselves for this might mean loss of jobs, loss of talents and skills, and negative impact on both employees and the public.
The President also pointed out that MCP has gained recognition from their field without using any means of outsourcing.
Renzo, on the other hand has a firm standpoint on his idea that it would really be beneficial for the company to outsource the pump housings and it would really give the company a little leverage to focus on future projects that is why, I strongly believe that proper strategic management is needed to pursue outsourcing without worrying the president of its possible risks.
Statement of the Problem
Can outsourcing the production of the pump housings produce greater benefits for MPC, than producing its own pump housings and fittings?
Areas of Consideration
Strengths
ATF Housings can be used for the MPC pumps with a 15%