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Review the Case Study, then answer the following questions.
Question 1: Recently a major transportation company in Canada approached NorOnt and indicated that they could provide all the organization's transportation needs between plants and to customers for a thirty percent decrease in their transportation costs. To this point in its history NorOnt had managed transportation internally and this outsourcing opportunity looks like a great deal. Is it? The VP Finance, Dean Ellerton has asked you to look into it. Explain in detail the implications of NorOnt proceeding with this outsourcing decision.
Question 2: NorOnt is considering the acquisition of a food company in Japan that produces some similar products but operates on a much smaller scale than NorOnt. What are the benefits of an acquisition of the Japanese firm? To NorOnt? (5 marks) To the Japanese firm?
Question 3: What are the risks to each company?
Question 4: You have been assigned by the Seguins to head the consulting team that will lead the transition. What advice will you give both companies so that the acquisition has the best chance of success?
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