American Greetings Harvard Case Solution & Analysis

American Greetings Case Solution

Question 3

There are many concerns regarding the outsourcing of production of the cards. Because the increasing competition in the market has emphasized on reducing the lead time between the production, and the delivery to the company. On the other hand, the company could outsource its production unit to China or Mexico. However, it is highly anticipated that company would not be able to meet with the risen market demand. Since the lead time would increase due to the outsourcing of the production.

On the other hand, if the company outsources its production from the China, then it would have fewer chances to make amendments into product’s design and paintings. It should either stop the whole production. Meanwhile, there would be huge chances that things would go wrong, and would not be mitigated. Since the production in the company would be given power over all operations. Similarly, the company would require providing training to outsourced units. Therefore, these concerns are worst for the company.However, I would not prefer to outsource the production to China.

Question 4

The idea that outsourcing the production unit would provide benefit for the company is somehow possibly qualitative. However, if we talk about the numbers and on the logical grounds, the company would not benefit from the outsourcing its production to the China. As discussed above that it would not be able to meet the market demand.

Furthermore, it could be determined that company would not get benefit from outsourcing the production. However, if the company invests in the new production equipment that would reduce the huge labor costs from all three categories, except category four that require intensive labor to finish the cards manually.

Indeed, the investment into the equipment would increase the production capacity of the company. It would also reduce labor costs. On the other hand, the company would be able to meet rising market demands in both times at regular intervals and in the seasonal times. Since it is also concerned that company’s fourth category of the card would be beneficial for the company, if it is outsourced for two reasons.

One it has huge labor costs, second that company could anticipate the seasonal demand, and make an order to the outsourced production unit to produce the cards for the company. So, by outsourcing the fourth category of the card would provide value to the company. Since it seems to be the best combination by which company could increase savings. Therefore, it is recommended to the company that it should invest in the new equipment, and outsource the fourth category of card.

Question 5

Furthermore, the given tone of the president Donald Trump over the trade would have no impact on the company’s outsourcing decision. Meanwhile, in no way, that tone would affect the company. Because the company would produce three categories of the products under their production unit.Whereas the fourth category of the product would be outsourced, if it not been outsourced for any particular reason it would have no significant impact on the company.

American Greetings Harvard Case Solution & Analysis


Therefore, there would be no change in the decision,due to the given tone of the president Donald Trump over the trade. Consequently, it is the best solution for the company to go with the provided solution, which would enable the company to meet with both types of market demand. On the other hand, it can be determined that increasing cost of the labors in the country might influence to outsource all category of the card from the China, instead to producing in the company............

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