ABSTRACT
Make-or-buy
choices are often analysed only from an income point of view, i.e. comparing
the costs of the production process implemented within the company with the
costs of the service acquired outside the company from third-party economies.
This attitude can lead to severe problems in the decision-making process. In
choosing the best option, point make or buy alternatives must be implemented
primarily based on the strategic impact of the chance to be executed or from
comparing the strategic implications of the two options. The strategic aspect
of make-or-buy choices is an essential element to be considered since the lack
of this type of analysis can lead to choices that are perhaps the most
profitable. However, these choices have severe consequences at the level of the
company's overall strategy, which is why top management must implement
make-or-buy decisions, not the heads of operational departments. Alongside the
strategic and profitability aspects, it must also implement make-or-buy choices
by considering the financial impacts of the two options. The static and dynamic
financial aspects analysed through ratios and flows, respectively, represent an
essential element of analysis for the decision to fall on the most convenient
option for the cartel, where the concept of convenience is understood in a
broad sense and, therefore, also financial. The analysis of the strategic,
profitability and financial aspects, thus, appears to be fundamental to
analysing the make or buy choices from every point of view. The decision can
fall on the most advantageous option for the enterprise where the concept of
convenience contains elements of a strategic, profitability and financial
nature within it.
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