Arrowvale Electronics' Make or Buy Decision Analytical Essay by scribbler

Arrowvale Electronics' Make or Buy Decision
An analysis of the elements Arrowvale Electronics has to consider in its make or buy decision.
# 153005 | 2,115 words | 8 sources | APA | 2013 | US
Published on May 01, 2013 in Business (Companies) , Business (Management)

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The paper relates that Arrowvale is considering whether to outsource and purchase a required motor assembly from another manufacturer or supplier, or to manufacture the motor assembly in the company's own factory. The paper goes on to evaluate this critical decision that must take into account quality, cost efficiency, reliability and above all safety standards, as the motor assembly in question has to become a part of important rail safety equipment, and provides both a qualitative and quantitative analysis as well as a cost benefit analysis. The paper shows how all the stakeholders such as suppliers, the marketing department, production and the procurement department, the research and development department, human resources, and the potential customers must be taken into consideration. The paper also points out that the last thing Arrowvale must consider before finalizing the decision is that to what extent its decision is flexible and reversible.

Scope of Activities
Make or Buy Analysis and Theoretical Application

From the Paper:

"With the global market getting more competitive each day make or buy decisions have become very crucial for the company. These decisions require the firm to review and consider its technology and processes and the costs pertaining to those processes. This is because the firm also has to keep room for strategic growth along with operational growth. If in house manufacturing of components that can be out sourced is consuming the finances that could otherwise be invested in achieving strategic objectives, then the firm needs to reconsider its operational cost and out sourcing might be a better option. Apart from that, outsourcing the motor assembly from a renowned and reputable vendor might also help improving sales revenue for that particular product line. On the other hand, outsourcing an important motor assembly would mean that the final product is not a pure Arrowvale product. However, this requires critical consideration of both the opportunity cost and the firm's operational and strategic objectives. Along with that, incorporating all commercial relationships is also important. It is important that the firm takes into account that how much secrecy it wants to maintain as far as the financial and monetary information is concerned and what amount of financial information is it ready to disclose to other stake holders."

Sample of Sources Used:

  • Arrowvale Electronics (n.d.). Manufacturing overview. Retrieved from
  • Arrowvale Electronics. (n.d.). Electronic Services. Retrieved from
  • Arrowvale Electronics. (n.d.). Our company. Retrieved from
  • Arrowvale Electronics. (n.d.). Rail. Retrieved from
  • Cite Man Network (2006). Factors influencing make or buy decisions. Retrieved from

Cite this Analytical Essay:

APA Format

Arrowvale Electronics' Make or Buy Decision (2013, May 01) Retrieved July 10, 2020, from

MLA Format

"Arrowvale Electronics' Make or Buy Decision" 01 May 2013. Web. 10 July. 2020. <>