Final answer:
The final consideration in the make-or-buy decision should focus on cost-effectiveness, product quality, strategic alignment, and supplier reliability, rather than just personal relationships with suppliers.
Step-by-step explanation:
The final consideration in the make-or-buy decision of a product should go beyond just personal relationships with suppliers. It encompasses a comprehensive review of factors including, but not limited to, cost-effectiveness, quality, reliability, and the strategic alignment of the product with the company's goals. While personal relationships can influence decisions, leading to trust and potential savings in transaction costs, they should not overshadow the due diligence required in evaluating the product's overall impact on business operations.
Cost-effectiveness and product quality are critical considerations. For instance, a favorable personal relationship might lead to negotiation of better terms, but not necessarily the best product fit. Moreover, strategic alignment plays a vital role in determining if in-house production or outsourcing aligns better with long-term business objectives. Lastly, the reliability of a supplier could determine a steady product supply and impact overall productivity.