User Account

All Pages

What are risks and benefits of outsourcing approach

Assignment Help Operation Management
Reference no: EM132879310

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: EM132879310

Questions Cloud

Delivering on value proposition demands constant improvement : Delivering on a value proposition demands constant improvement and innovation as competition changes over time along with evolving customers' needs
Obtaining informed consent and the necessary approval : Please read the scenario below, and then answer the questions that follow in analysis. The questions will guide your analysis of the situation, but they will n
Companies face expanding product and service lines : As the rate of innovation increases, companies face expanding product/service lines, shorter product and service lifecycles, and more frequent product/service
How does organization implement social responsibility initia : What do you consider to be the top three benefits to social responsibility? How does your organization implement social responsibility initiatives?
What are risks and benefits of outsourcing approach : What are the risks and benefits of the outsourcing approach? What are the strategic advantages of outsourcing to vertically integrated firms?
Assess the recent study of interest from a journal article : Assess the recent study of interest from a journal article and review the data analysis in its relationship to research questions
What proportion of equity a would have to sell to outside : Assuming that the entrepreneur exerts effort, what proportion of equity a would she have to sell to outside investors to fund the project?
Describe what the content of the training would entail : Approximately 100 managers need to be trained. Considering the information that follows, what approach would you take to prepare for the workshop?
What was the effect of the transaction on cash flows : Problem - Fully depreciated equipment costing $25,000 was discarded. What was the effect of the transaction on cash flows if no cash is received

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd