Eólica de Composites, S.A. (ECSA) - Teaching Note

  • Reference: ASNT-12-E

  • Number of pages: 9

  • Publication Date: Feb 14, 2011

  • Source: IESE (España)

  • Type of Document: Teaching Note

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Description

A company suddenly wins a substantial contract, but doesn't have sufficient capacity in its existing plants to execute it. The search for a new plant location yields two final alternatives for a possible location, with similar costs but very different situations. One of them favors a policy of outsourcing but with few qualified workers, and the other is opposed to such a policy. The prioritization, analysis and explicit description of selection criteria reveals many relevant aspects which were initially invisible, and underscores the need to remain explicit in order to gain a better understanding of the consequences of each decision alternative.

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