Issues and Solutions While Wesfarmers' prospects following the proposed acquisition of Holganix are expected to be bright, there are issues that have been anticipated, upon which initial solutions are being built. 5.1 Production The most difficult part of acquisition is not obtaining the resource, but having the resources ready for production in a cost-effective manner. It is widely known that the price of labor in advanced economies such as the United States and Australia can be very expensive. Manufacturing based in Australia or America is therefore likely to increase the cost structure and further impose financial burdens on Wesfarmers. More importantly, such continued high costs are expected to be unsustainable in the future. Solution To resolve this obstacle it is possible to adopt an outsourcing strategy. The proposed solution is that any practices involving heavy labor, such as manufacturing products, would be outsourced to Asian countries such as China, which exhibit a much cheaper labor market. Holganix's laboratory and R&D center will primarily focus on the conceptualization of innovation and the realization of ideas through the development of prototypes. Mass production will eventually be taken offshore. 5.2 Sale a