Question 2 (Marks: 20) You have been recently appointed as a Purchasing Manager at Unilever. The director has mentioned

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Question 2 (Marks: 20) You have been recently appointed as a
Purchasing Manager at Unilever. The director has mentioned that the
organisation has recently been experiencing uncertainty in demand
and there is currently no available capacity. As such, he is unsure
whether he should make or buy the new range of cleaning detergents.
The Director has requested you as a purchasing manager to do
thorough research, and in a report, reflect on the following: •
Differentiate between insourcing and outsourcing. (4 marks) •
Discuss at least two circumstances favouring buying (outsourcing)
and at least two circumstances favouring making (insourcing). (6
marks) • Based on your discussion of the circumstances favouring
outsourcing and insourcing as well as the restrictions outlined by
the Director, identify whether the cleaning detergents should be
outsourced or insourced. Justify your answer by discussing at least
two key points. (6 marks) • Identify any two potential drawbacks
that Unilever could face given their choice of sourcing method. (4
marks)