Manufacturing businesses at some point will need to invest in capital equipment, in the form ofmachinery, vehicles, buildings and other equipment. Capital equipment investment is decisionpremised up complex financial and operational requirements, but it is a decision no business canavoid permanently.Mosetsana Pads has currently outsourced the manufacturing and distribution of their products,but they are considering bringing both aspects back in-house, since the business is growing andhas garnered enough market share to warrant that level of expenditure and expansion. Your discussion should substantiate using practical examples, and address the following:1. Give examples of the five (5) categories of capital equipment that Mosetsana Pads willneed to acquire. Explain the importance of each category to the business.Assess five (5) of the areas in which purchasing and supply management can provide im-portant input during the procurement of capital equipment by Mosetsana Pads.2.

The strategic decision to invest in capital equipment is a pivotal juncture for any manufacturing…

Answered: Your discussion should substantiate…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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George Zegoyan and Amir Gupta face a ditticult decision. Their private auto parts manufacturing company has been a great success - too quickly. They cannon keep up with the demand for their product. They must expand their facilities, but have not had time to accumulate sufficient working capital, nor do they want to acquire long term debt to finance the expansion. Discussions with there accountants, lawyers, and stockbrokers have confronted them with the necessity of going public to raise the reguired capital. ess Zegoyan and Gupta are concerned about maintaining control if they become a public company. They are also worried about loss of privacy because of the required reporting to various regulatory bodies and their their shareholders Naturally, they are also pleased that the process will enable them to sell some of their shareholdings to the public and realize a faiir profit from their past and expected future successes. They will be able to sell 40 percent of the shares for…
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