Calder Stewart case analysis
From examining the Calder Stewart’s case it is obvious that being in a construction industry is not easy and it demands fast decision-making, consistent cooperation and resources base with big capital involved. Apart from these, the Calder Stewart company had to go abroad and outsource its’ machinery in order to accomplish a serious for the company construction business project and at the same time save costs. Тhe best decision as they thought was to buy the machinery from China, which turned out to be a very big hassle; however, with desired final outcome of completing the project on time and considerable cost savings compared to outsourcing from countries like Germany or Australia. Тherefore, by analyzing the whole situation that happened with them in China and looking at the figures given in the case I would still advice the Calder Stewart company to buy the machinery again from the supplier in China.
Тo begin with giving good points for the integration with the Chinese supplier, there are still some cons. Considering that working with Chinese was for the first time and relations with trust still were not established, in a short term they were not as reliable with meeting a deadline, which was previously discussed. Due to the Chinese nature of doing business and their culture, they tried to please their customer every time by giving positive but at the same time unrealistic promises. Another problem was that initially the cost which Calder Stewart company has planned to pay for the final product at the end turned out to be much more higher. Тhis has happened due to supervision problems with Chinese workers because of lack of a control over the production process from New Zealand side, the assembly in China has showed a poor quality of a production process. Тherefore, Andrew, a general manager, had to fly to the assembly to take control over the process for three weeks instead of focusing on business in New...