Explain whether you would have the shoes manufactured in Indonesia and make higher profits for the company or avoid the risk of negative publicity and its potential adverse consequences for the firm’s reputation. Are there other alternatives?

Business & Finance homework help| 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. Outsourcing production can lead to increased profits, as labor costs in Indonesia are lower. 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.

Companies should carefully weigh all of these issues before making any decisions. The company could also look for another country with lower labor costs, but no negative publicity. Also, companies can look at other cost-saving methods such as recycling materials and using energy-efficient processes to minimize costs while maintaining quality.

Overall , while there are pros &cons associated with either choice, it is up to each individual organization decide what will best meet their needs ! They can create strategies to maximize profit while minimizing any risks.