The recommendation focuses on improving the cost management capability of the company by building strong relationships with labor and suppliers. This is expected to lead to sustainable growth opportunities. The two recommendations are: reducing capacity constraints on the production side by improving labor relations, and improving relationships with suppliers. To implement these recommendations, the company should establish a labor relations department, employee assessment division, procurement assessment division, and consistent channels of communication with suppliers. These actions will help improve cost management and lead to low-cost products that can be sold in the market at competitive rates.
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