...be done, in terms of pros and cons. Due to limited space, most relevant and significant factors will be discussed. For the positive aspect, JRD can benefit Nokia in the following aspects: Effective Cost and Higher Efficiency: By making use of the competitive advantage for the low labor price in China and Taiwan, Nokia can achieve more effective resource allocation: with less investment to obtain higher efficiency, just as mentioned in the HBR case. Foxconn has a series of advantages Nokia can make use of to achieve higher quality and faster speed to market. Focus on Core Competencies: By outsourcing to Foxconn, Nokia will have more resource to target on core competencies. For the cons, JRD might jeopardize Nokia in the following aspects: Overlooked Costs: The reduced cost from labor wage saving is somewhat overemphasized while other tangible or intangible costs are overlooked. For instance, the training for engineers in Foxconn. The process will take time and man power, and the high turnover could make the cost much higher. Other costs include quality inspection, supplier management, custom compliance and so on. Failure to consider these costs can be hazardous, as in Boeing’s case for 787 Dreamliner. Off-shore Supplier Management: proper amount of internal resource should be allocated for off-shore supplier management. Poor communication and lack of proper governance can lead to outsourcing obstacles, which appeared in Nokia’s path in outsourcing to Foxconn. Though efforts...
Words: 729 - Pages: 3
...Kimberly Clark – Lean Logistics June 25, 2012 Executive Summary Organizations in today’s economy often include cost control or reduction in their overall strategies. Logistics is an area of increasing focus where internal and external costs affect the margins and customer demands require excellence of service. In distribution, selective, exclusive and intensive are three primary channels in which an organization must determine the best option in relation to products and customers. The Kimberly Clark Company provides an excellent example for today’s organizations with “a customer-oriented supply chain reorganization begun more than four years ago, K-C is improving distribution efficiencies, reducing transportation costs and shrinking its carbon footprint, while becoming an indispensable partner to retail customers” (Jamison, 2008, para.3). Technology and the Supply Chain Continuous advancements in technology offer new solutions to old problems in supply chain management as well as placing focus on the current needs of distribution in global markets. Real-time locations systems (RTLS) are among emerging technologies where “RFID is no longer considered an emerging technology. It is a proven solution with high value add and an increasingly attractive ROI, said Michael Liard, Director, AutoID for VDC Research Group.” (Zebra Technologies, 2012). Technology plays an important role in distribution where retail customers focus on inventory reduction...
Words: 2784 - Pages: 12
...Outsourcing Yet Another Service: IT Ryan S. Pavlak BRIT (R)(MR) Independence University Outsourcing Yet Another Service: IT In the world today saving the ever so precious dollar bill is the most important thing to almost every business. The outsourcing if information technology services is just another way for a company to potentially save money. Information technology services is not the first service to be outsourced and it is surely not the last. The reason it seems so beneficial is typically because of how mismanaged the internal information technology services, like what was taught earlier in this course. But is it really beneficial to outsource information technology services and who are really outsourcing their information technology services? The cons along with other pertinent information about information technology outsourcing will be discussed further. Who is outsourcing As technology has advanced over the past few decades the age of the internet and information has blossomed. With this developing industry came the need for a service to keep it up and running smoothly, that’s where an information technologist specialist comes into play. This can include any organization from a hospital to a flower shop, if the organization uses technology the need to service those serves will be there. So who is actually outsourcing this service? An article written in the Journal of Accountancy explains that large companies are outsourcing their information technology services...
Words: 1003 - Pages: 5
...Chapter Three The World Marketplace: Business without Borders Review Questions 1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity? China, India and Brazil are some of the largest growing global businesses. These comes from many different factors; GDP growth and population are two major causes. China has the largest populations in the world along with the fastest growing GDP percentages. Brazil’s population is not as large but does has a high GDP percentage, and also a high Dollar Pre Capital GDP. 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? When their country of origin has naturally cheap raw materials or if their currency has been undervalued, they are naturally cheaper than their competitors from other countries. This gives them better margins and they thrive. 3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why? The money being spent to buy things from other countries is much larger than the amount of money where other countries are buying from the U.S. The deficit means we are buying more than we sell. To make up for the difference people and governments from other countries buy U.S. investments assets. 4. Explain the meaning of “strong”...
Words: 762 - Pages: 4
...What are the pros and cons of outsourcing to China? By: Introduction The Objective is to explore key factors and pros and cons in outsourcing to China. Research findings identify obstacles faced by both parties in outsourcing. Economic factors are motivational factors in outsourcing to China. Cost reduction, savings, and investment reductions are the main concerns. Benefits focus on core competence, flexibility, and market penetration. Companies in China have ran across several obstacles such as poor communication and lack of preparation. Common Approaches There appears to be three commonly used approaches to outsourcing decisions (as also noted by Bolumole et al. 2007): transaction cost economics, resource based theory, and network theory. Other researchers have explained differences between these approaches(e.g. Mayer and Salomon 2006) Service Provider The vast majority of Chinese enterprises dealing with outsourcing have a single service provider. The Chinese enterprise must establish the right business requirements in order to be successful. Some of the first generations of outsourcing the senior management teams were not very happy with the results of the first few years. The management did not understand how to construct a sourcing strategy to meet the business needs. Management was unclear about the outcomes expected from outsourcing with the provider. In order to prevent unrealistic expectations they found planning to be extremely important to develop the proper...
Words: 1499 - Pages: 6
...Does Outsourcing Save Money COM/156 October 7, 2006 Jacqueline Lance In this day and age, we wonder why major companies outsource and whether they are really saving money. A website named investors.com said, “More than 1.3 million additional Western jobs will vanish by 2014 due to outsourcing”. Outsourcing to foreign countries can help save larger companies money, by reducing cost and increasing revenue. Companies are finding more ways to save money and increase productivity. Outsourcing might not look like the best decision to consumers in reality it is the best choice for a business. Even though a lot of American workers are out of work, there are still several benefits to outsourcing. The main benefit to outsourcing for most companies is saving money. In this current economy it is hard to save money in America with the cost of just about everything increasing daily. Companies have no other choice but to outsource, or they might have to close down. In order to keep up with consumer demands, major companies are outsourcing to foreign countries, were they are able to get tax breaks and cost reduction on materials. With the cost savings that the companies receive they are able to produce a better product. There are several things that must be completed prior to determining if out sourcing is the best option for your business. Outsourcing in foreign countries is becoming the new way for companies to save money. Before a...
Words: 1563 - Pages: 7
...BabbaCo Case Questions 1. What are the pros and cons of each customer acquisition channel? What do you think about their customer acquisition model as a whole? Search Pros: * Search ads bring parents to BabbaCo.com, where they consume content, and join the newsletter or the Facebook fan-page to interact with the community. Over time if they are impressed with the offering, they will sign up to become a trial customer and then, later, convert to a paying customer. Cons: * Online marketing is not an area where Kim has great expertise. * Since BabbaBox is an entirely new product category, moms aren’t searching for it or for related terms. * When parents land on BabbaCo’s site, they are confused by the monthly box concept and quickly move on, leading to a high bounce rate. * BabbaCo has limited IT resources. * All web development is outsourced to a third party, slowing down the pace at which Nolan can run search experiments and iterate campaigns. Social Media Pros: * Customers acquired through social media have the lowest churn rate. * Whenever a BabbaCo Facebook fan “Likes” or comments on content on the fan-page, he or she broadcasts that action to his or her friends. * BabbaCo customers post side-by-side reviews of BabbaBox vs. the competitor’s box. This works in BabbaCo’s favor when its product receives positive reviews. Cons: * The long lag between the time that a user first arrives to the fan-page or “Likes” BabbaCo and the time...
Words: 679 - Pages: 3
...they could broadcast the issue to several employees which would provide multiple angles of aid. Also if a manager needs to relay a message to several employees for example weather delays he could easily accomplish this using an enterprise collaborative system. MIS (management information systems) which provides data to managers to help them make decisions would also benefit smaller airlines. It would provide smaller airlines with the ability to increase production and revenue by reducing things that are rarely utilized. Although there isn’t a particular airlines that I like to travel on, I do decide to fly more instead of driving because IT systems make flying less of a hassle by reducing wait times. Discussion: In his Harvard Business Review article, "IT DOES NOT MATTER,"...
Words: 2725 - Pages: 11
...Executive Summary 4 Introduction 5 Background 5 Proposed Action 5 Cost Table 8 Executive Summary Doing business in today’s economic structure is not the same as it was 20 years ago. The induction of e-commerce and e-business to economic infrastructure, traditional brick and mortar businesses are finding it difficult to compete with more streamlined businesses that are outsourcing their products and services via the Internet. Streamlining Rock Bottom Records by adding a relational database management system (RDMS) and a website will increase productivity and cost savings by reducing the amount of time it takes for analyzing productivity, ordering and shipping, financial, and payroll. Adding a website with a RDMS and offering digital music downloads the company will be able to compete with other companies worldwide. The most popular affordable RDMS’s that are in use today are Microsoft Access that comes with Microsoft Office (Professional) is popular with most small businesses ("Microsoft Access Database: The Pros With Less Cons When Using Microsoft Access As Your Database", n.d.)., PostgreSQL which runs on multiple operating systems and is an open source database, meaning it is free (“PostgreSQL”, 1996-2012)., MySQL is also an open source database that runs on multiple operating systems ("Advantages And Disadvantages To Using Mysql Vs Ms Sql", n.d.)., MSSQL is a closed, propriety database that works great with Microsoft programs ("Advantages...
Words: 1026 - Pages: 5
...Hire A Literature Review The study investigates the evolution, pros and cons of outsourcing as business function. Many researchers have identified various reasons to outsource an activity following a set process. The review proposed a well defined integrated outsourcing process model for effective outsourcing. Using an example of a global company this study detailed the benefits of externalization process and concluded that outsourcing is successful if activity selected is correct. Hire OUT-Sourcing 2 Global Procurement (BMO 5307) Assignment 1 Hire OUT -Sourcing A Literature Review Hire OUT-Sourcing 3 Contents Introduction ............................................................................................................................ 4 United Technology Corp. (UTC) ................................................................................................... 5 Rise of an Era - History & Evolution ......................................................................................... 5 Why Outsourcing? ................................................................................................................... 5 Procurement Outsourcing & UTC................................................................................................ 6 Where To Begin? ..................................................................................................................... 7 What UTC Was Willing To Achieve? .................
Words: 5031 - Pages: 21
...In an effort to continue save money while continuing its growth, Global Communications must make a decision and create a plan that will allow them to expand their products and services internationally. Of late, Global Communications has witnessed a sharp decline of its stock prices and are facing problems with their employees concerning the outsourcing of jobs. The goal of this paper is to identify Global Communications problems and provide them with solid solutions as courses of action. These actions will be achieved by applying the Nine-Step Decision-Making Model and various other concepts discussed throughout this course. The Nine-Step Decision-Making Model consists of the following items: 1. Describe the Situation-This can take time, but is well worth the effort. Individuals involved in this part of the process must understand the context of the problem. 2. Frame the "Right" Problem-This stage is also challenging. Individuals are often encounter difficulties in trying to determine the true problem needing to be addressed. Working to frame the “right” problem is also challenging because it forces team members to be clear and concise about the situation that needs to be addressed. 3. Describe the "End-State" Goals-The focus of problem solving is the solution, not the problem statement, which may be thought of as the means to the end. The “end state” is the ultimate goal of...
Words: 3697 - Pages: 15
...problems faced when attempting to actually implement the technology. In this respect, an organization may opt to keep their existing technology and make the necessary improvements to keep it as a viable technological vehicle. So what are some of the basic problems organizations face when it comes to implementing advanced technology? This can include the following: * Taking risks and not really knowing what the results will be * The time it will take for the implementation * The costs associated with the implementation * Poor understanding of the new processes once implemented * IT assistance for problem solving Even though the idea of a new technology sounds good when presented, the organization has to weigh the pros and cons. This can at least give them some outline of what they are actually getting themselves into. Businesses feel that once you make the decision to change the processes everyone has gotten...
Words: 1402 - Pages: 6
...Purpose The purpose of this analysis is to analyze and determine if outsourcing our business processes would be the best business decision that we can make for Smith’s Information Services. There will be many aspects of outsourcing our business processes to consider, which will be contained within this document. This document will also serve to thoroughly provide outsourcing options, all at differing price points and feature levels. We will analyze each of these outsourcing options and provide evaluation criteria as the basis for how the bids are evaluated. Also, if BPO is the direction that the company chooses to go, a timeline will also be crucial to adhere to, to ensure that the project is completed within a reasonable amount of time. Current Situation Smith’s Information Services is at a pivotal point in its business cycle. While we have enjoyed many very successful years, several aspects such as increased costs and competition are forcing us to change the way that we do business. We are having to endure ever-rising hardware and software costs, as well as increasing costs to run our 24/7 data center. While there is a huge potential for growth in our business, with growth also comes increased costs. It is crucial to stay on the fore-front of change to remain competitive in this fierce business environment. We are doing business today in an electronic global environment, where we no longer have to be concerned with a competitor down the street from us – we now...
Words: 1971 - Pages: 8
...EXECUTIVE SUMMARY Trends come and go, and this is especially true in the healthcare industry where everything is currently constantly changing. It is always important to analyze pros and cons of business trends when deciding whether to implement them in an organization. While there are countless trends to consider, six in particular will be the topic of this discussion: Mergers and acquisitions, consumerism and the role of the patient, outsourcing, Lean Six Sigma, Medicaid Expansion, and Bring Your Own Device. In the ever-changing health care world, different business and finance trends come and go. In the midst of all the uncertainty, there is only one thing for certain and that is the goal of improving the bottom line. There are countless trends on the horizon for healthcare but there are six in particular that will be discussed: Mergers and acquisitions, consumerism and the role of the patient, outsourcing, Lean Six Sigma, Medicaid Expansion, and Bring Your Own Device. Careful consideration of the pros and cons of each trend can help determine whether implementing one or more of them is right for an organization. Mergers and acquisitions are expected to grow within the healthcare industry in the coming months and even years due to the Affordable Care Act. According to KPMG, 60 percent of the healthcare executives it recently polled said they plan to make more deals in 2013 than in 2012. Many of the deals are expected to be mid-market sized or smaller...
Words: 2074 - Pages: 9
...Statement How can Singhania And Partners sustain its successful people management system in future? | System | EA Factor (Political, Economic, legal etc.) | Implications on the problem | Political : | As more and more countries (for ex. China, Korea) are increasingly liberalising their legal services, the Indian Government may also follow the path. Thus competition may increase immensely in the sector, an increase in the attrition rates has already created a scarce of resource of legal professionals. Thus Singhania And Partners can also face the heat. | Economic: | There is a scarcity of legal professionals in India, and the scope of work increasing consistently (Starting with the liberalisation of Indian Economy to current outsourcing scenario). Thus it is very important for Singhania And Partners to maintain its people management system. | Legal: | Currently foreign law firms are prohibited from giving any legal advice that could constitute practising Indian law. This is an advantageous situation for Indian law firms like Singhania And Partners as it increases their work horizon and decreases the competition. | Social: | As India’s legal system is slow, the companies preferred arbitration over going to courts for settling disputes. This factor combined with the fact that there are very few legal firms having expertise to handle commercial work for multinationals, creates an explosive demand for legal services in India. Expert firms like Singhania And Partners...
Words: 1518 - Pages: 7
