Organic Vegetable Packers Ltd. has been awarded a major contract for their product range to be
supplied to the United States of America. This will increase their production by 40%. There are
severe penalty clauses imposed if deliveries are not met, particularly if quality, quantity or
production standards are not achieved. Organic Vegetable Packers Ltd. will impose these penalties
on the suppliers or parts of the organisation which are responsible for any breach of the contract.
Critically evaluate the implications for the internal and external stakeholders of this policy.
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