6 Part 2: Qualitative Analysis You are a manufacturer of automotive parts. Your

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6 Part 2: Qualitative Analysis You are a manufacturer of automotive parts. Your customers include 5 major automobile manufacturers. These 5 manufacturers account for 90% of your revenue and 95% ofyour operating income. They buy parts from you to supply their manufacturing plants located in the US. The locations of the plants are in the mid-west, the southeast, Texas, and the west coast. All of the manufacturing plants adhere to a Just-In-Time (JIT) philosophy. Accordingly, you must deliver parts to each manufacturing plant at the right time, in the right quantities, and of the specified quality. Steering wheels represent 30% of sales to your customers. Recently, you have been considering outsourcing production of the steering wheels that you supply to your customers. If you do outsource, your operating income will increase by 10%. This 10% increase in operating income is very important to your business. The company that has offered the outsourcing deal is located in Accra, Ghana. Financially, the outsourcing deal is a good one, but you are concerned about qualitative factors. 0 1 2 1 3 2 4 3 Identify 3 qualitative factors that could cause you to reject the outsourcing deal Briefly explain why each of the 3 factors could cause you to reject the outsourcing deal Could negative factors be mitigated to make the deal acceptable? Briefly explain how. 2 points 4 points points

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