Business Uncertainty and Make-or-Buy Decision - Assignment Example

With the economy not being fully ascertained by economic analysts especially now that the world is just recovering from an economic downturn, many Chief Executive Officers and senior management are opting to make short-term decisions which are in favor of buying instead of making. The advantage to the buy decision, as opposed to the making one, is avoiding to “put all their eggs in one basket” that is making a long term financial commitment which in case of another economic downturn, the company will go under since they lack contingency plans and funds.

The likelihood of this trend changing is almost non-existent at the moment and especially with another economic loom starting in Greece and other European nations. The change will depend on what the financial and economic analysts will be predicting the future and especially in relation to whether to invest or not. A positive prediction will change the decision from the present buy to make (which is a long term measure).