Make or Buy decision essay

This essay highlight why this company is looking to have a new application and what is triggering the company to consider a make or buy decision. The strategy of “make or buy decision” implies to choose a strategic decision concerning whether to buy a new product from an external supplier or manufacture it. Such a scenario comes when a company is interested in maximizing profits and minimizing production cost. Purchasing from external suppliers is in most cases cheaper when compared to producing the product internally. Identified issues that are leading BMC to consider a new application The techniques and software that BMC is using are outdated. One of the factors that are necessary to consider is the validation of the need for technology.

They must do research and understand whether the technology they are thinking to buy is worthy and the company needs it. A new technology or application should not be bought just because it fascinates the company. The company should make sure that the technology is necessary and it has great benefits to the company both in the short run and the long run. Another factor which should be put into consideration is whether the company is equipped with skilled employees who will use and handle the new technology or application. What would you recommend Kyle Baxter do? Provide a rationale for your recommendations I will recommend Kyle Baxter to have the new software build than purchase it from an external supplier.

The EMS software that Moore recommends is so complicated. BMC does not need software that is so complicated. In the past, the company has had many bad experiences of buying new technologies from external suppliers. If Baxter buys the EMS software, employees will have several problems in using the software because of its complexities. BMC has no complex manufacturing, and therefore it needs a simple application that is customized according to the needs of the company. This will make it easy for the workers to use the application efficiently. Time and money will be wasted to train employees how to use a complex application. Such decisions are crucial to any company, and therefore a careful analysis of the whole situation needs to be done.