Sher-Wood Hockey Sticks: Global Sourcing

1. What motivated Sher-Wood to outsource manufacturing to suppliers inside and outside of Canada in 2007 and 2011? [10 points] Outsourcing is very beneficial to a majority of organizations, especially for the non-essential activities of the firm. Sher-wood also decided to take the outsourcing path in 2007 for various reasons that would prove beneficial for the organization. From 2007, Sher-wood decided to seek outsourcing services of wooden hockey sticks (PMP 5030) from suppliers in Estonia, China, and Canada depending on the quality (high, medium, and low ends). What drove the company to do this was to reduce the overall cost to manufacture the hockey sticks and the associated risks that came with the productions. Another reason for the motivation was to take advantage of the supplier's skills and capacities. They believed the suppliers would offer excellent services to them, and they aimed to acquire a new set of skills from the chosen suppliers. Despite all these reasons, their primary motivation was to increase the profitability and the general growth of their firm.