Tremendous advantages for firms

Assignment Help HR Management

Reference no: EM13735851

Discussion-Outsourcing: A Strategic Advantage?

Outsourcing may provide tremendous advantages for firms. It may allow companies to specialize, reduce costs, and focus narrowly on the core competencies they deem strategic; however, companies also have to think about what they may lose both qualitatively and quantitatively. For example, when outsourcing, managers need to be certain that what they source from outside is not a key component of their value proposition.

A way to reduce those risks is to use an approach called vertical integration. The meaning of vertical integration is developing the ability to produce goods or services previously purchased or to actually buy a supplier or a distributor. It can take two forms: backward and forward. These forms relate to how the corporation moves in its supply chain to pursue the vertical integration. If the movement is towards the suppliers, it is called backward integration. Conversely, it is known as forward integration.

Using the module readings, Argosy University online library resources, and the Internet, research outsourcing. Based on your research, respond to the following:

What are the risks and benefits of the outsourcing approach?
What are the strategic advantages of outsourcing to vertically integrated firms?

Reference no: EM13735851

Questions Cloud

What is coca-cola''s company scope, the extent of relatedness : What is Coca-Cola's company scope, the extent of relatedness, and the rationale and reasons for Coca-Cola's merger & acquisitions and alliances?

Operational barriers to success : Delivering on a value proposition demands constant improvement and innovation as competition changes over time along with evolving customers' needs and wants.

Examine the security risks involved with a company : Examine the security risks involved with a company that uses just-in-time delivery. Propose ways that these risks can be avoided and From the third e-Activity, determine how that company you have chosen will affect the delivery of goods based on th..

Write how qnb used some tools for quality in past : Write a report about (Quality Management), in QNB (Qatar National Bank)1- Write how QNB used some tools for quality in past.2- Write how QNB now is using tools for quality.3- How these certifications has impact in the QNB and their employees and cust..

Tremendous advantages for firms : Outsourcing may provide tremendous advantages for firms. It may allow companies to specialize, reduce costs, and focus narrowly on the core competencies they deem strategic; however, companies also have to think about what they may lose both quali..

How variation in labour market policies across jurisdictions : How variation in labour market policies across jurisdictions can be explained? select two provinces as your case study. Is employment equity desirable?

How might the difficulties of matrix organization change : Which virtual project problems are unique to the phenomenon of being dispersed and which are common project problems in any project. What new electronic technologies have contributed to the problems, and solutions, of virtual project teams

Describe what the unintended consequences : Discuss an example of dynamic complexity that you've experienced at work (use a different example than what you described in your discussion post. Describe the situation and the solution that was implemented. Discuss the interrelationships between th..

Future hold for the medicare system : What does the future hold for the Medicare system? What role will HIPAA play in the future of health insurance? In 1-2 pages address the challenging factors listed below.

User Account

All Pages