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Concerns in Choosing Small Firm as Supplier for MNE

You are a large Multi National Enterprise (MNE). What are your major concerns as a MNE as you evaluate a small firm as a potential supplier?

Do geographic location and/or type of industry determine the nature of your concerns, whether MNE or supplier? If so, why?

Solution Preview

Major concerns as a MNE evaluating a small firm as a potential supplier would be the following:

1. A MNE would need to access the ability of the company to handle the increased business. This would include the operational structure. Is there a sufficient management structure in place to process the orders? Is there the ability to hire and train workers to rapidly produce the product?

2. Can the small firm produce all orders in full. A small firm presented with large orders would need to have sufficient cash resources, strong supplier ties, and the ability to ramp up production ...

Solution Summary

This detailed solution discusses the major concerns a multinational enterprise would have in choosing a small firm as a potential supplier. It also discusses if geographic location or type of industry would determine the nature of the concerns. It includes links and examples.