Various stages in outsourcing

Various stages in outsourcing Various Stages in Outsourcing The companies have many processes that have to be integrated while manufacturing, selling, buying, customer sourcing etc.   It has to decide on what level it has to outsource so as to be a profitable organization. It has to identify analyze and maximize outsourcing opportunities. The stages for outsourcing can be different for different customers but the The outsourcing process can be put into three phases: (these stages have been put out after going through how many companies decide to outsource Analysis Stage perations stage Implementation stage model by author Analysis Stage(ch.2 pg 33. Decision to outsource book: black book of outsourcing) There are various decisions that the company has to make while thinking of outsourcing. One of the biggest questions that arises in the mind of the company is to make or buy the required service or product for the company. The company mostly uses cost benefit analysis with the help of the make or buy model to come to a conclusion whether to buy or make. The analysis stage acts as foundation stone where the company decides if it wants to outsource its function or not. The model helps us understand whether the company wants to make or buy. Its possible that they get into joint venture, subsidiaries or allied services could be obtained.   It depends on the cost analysis that the company decides mostly on what they want for their business. Comparative analysis of the make or buy decision is regarded the highest degree of analysis for taking such a step. The company has then to scan all the places where they could get service providers for their company for outsourcing. For example: If a company like S.Oliver in Germany wants to see where it can get the cheapest labour and manufacturers for their apparel the have many South Asian countries that they can depend on as their main concern for cost is labour and that is the cheapest in the countries down Asia. There are various political hassles that happen when the company wants to enter and obtain services from another country. The company would always like to enter a country that is politically stable and does not create any problems for them to setup and establish their roots. The make decision will involve the company to look at the economy of the countries that they want to outsource. The economy should be stable and should not be better than the companys own country or there is no point in outsourcing. The company would like to look at the cost and also if there are future potential to sell in the same country the products that they are making. The main infulncers in this category will be the GDP and the per capita income of the people. Operations Stage At the operations stage the company will identify and shortlist the service providers and negotiate the terms and conditions with them. The company will undergo this process with various service providers so that they can get the best deal out of the minimum problems. The company will then select some service providers that the company feels would be the most profitable. The company will negotiate the terms and conditions and keep the format clear on what they are looking for and what is the way the payments would be made the staff the operational strategies, raw materials, etc The most important thing that arises while coming to outsourcing is the communication or logistics channel that the company wishes to use for outsourcing. For e.g. S. Oliver has to ship back its apparel from India to Germany to get the apparel checked and branded if they are made as per the requirements. So for such process the cost of logistics and operations are also looked for if the it works out cheaper for the company to outsource its services to other countries. Implementation Stage This stage is the most important and the most difficult stage. The company have to send across managers and consultants to actually implement the business process and design how they actually want the production to go on. The company lays down the framework in place and puts the integration process right. Construction of the business is setup the communication lines are setup, the total integration of all the businesses together. This stage will determine the future flow of the business. The company can also run a simulated run so that they will come to what all flaws are there and they can improve it later. Advantages, Benefits and Opportunities There are various advantages of outsourcing; some of them are listed below: Outsourcing can save money Economies of scale can save money for the service providers can produce in large volumes because they get orders from multiple companies and the volumes are high. The pharmaceuticals industry can be used to illustrate economies of scale in relationships. Clinical trials of experimental drugs require just the right patients healthy in most all respects but the one indication being treated, and willing to submit themselves to experimentation. It takes a significant investment of time and money to develop relationships with the hospitals and clinicians (and the triage nurses in their emergency rooms) that supply patients for the trials. Clinical trials also require just the right medical investigators doctors and medical researchers who are well respected in their industries. Again, it takes size to attract the best investigators. The most sought-after investigators look for organizations that can supply them with interesting and publishable research projects and with support services (such as data collection and well-managed processes) that make their jobs easier and their results more reliable. And so a lucrative outsourcing industry has evolved to manage clinical trials of experimental drugs for pharmaceutical companies. [The author thanks Patricia Seymour, Covance Biotechnology Services, Research Triangle Park, North Carolina, for this case study.] Outsourcing allows concentration on core business The company has to also to concentrate on its back office activities by outsourcing such activities to other companies the company can avail benefits of concentrating on core business activities. For e.g. A company in has to look after large purchasing orders in a short span of time for its increase in volumes of production, it can outsource its purchasing process to some service provider and thus concentrate on its core business activities. Technology advantage at lower rates The company can avail http://www.enotes.com/management-encyclopedia/make-buy-decisions http://www.sourcingmag.com/content/c051011a.asp

Corruption in Mexico Essay

INTRODUCTION It is difficult to examine many of the problems currently going on in Mexico without the word â€Å"corruption† being thrown around. It is assumed that most government officials, judges, and police officers are on the take, either from each other, the public, or drug cartels. How has corruption become such an ingrained part of Mexican society, and why is it so difficult – if not impossible – to stamp out? HISTORICAL BACKGROUND In colonial times, the buying and selling of indulgences, of public offices and titles, military ranks trafficking, confiscation of goods, were daily practice. All these occur between wealthy families and of course, all people linked with the Spanish crown, Rulers, civilians and ecclesiastical always were trying to advantage complexities of bureaucratic structure to made large fortunes and got expensive properties. After independence, the system continued because bureaucrats needed some way to make up for the shortfalls in their incomes from small tax revenues. â€Å"In most cases there just wasn’t enough money to pay for the services people needed, so corruption developed as a means of raising revenue, although it has always been more than a way of financing government operations.† **In modern Mexico, this system attempts to ensure that services are rendered to certain people. As in colonial times, it also attempts to make up the shortfall in salaries. Mexican government officials say that corruption is almost a necessity in Mexico to maintain order and stability. It is seen as a way of life. As long as most people feel they are getting their share – even if it is through corrupt means – then it keeps the masses happy. Another angle of corruption in Mexico is the dreaded â€Å"silver or lead,† meant  as take the bribe or take the bullet. This is a form of corruption encouraged by fear, as opposed to social acceptance or economic survival. Many police officers in Mexico are corrupt because they or their families are physically threatened by drug trafficking organization (DTO) members. *IDENTIFY PROBLEM IN DETAIL 1 Bureaucrats needed some way to make up for the shortfalls in their incomes from small tax revenues. 2 Many police officers in Mexico are corrupt because they or their families are physically threatened by drug trafficking organization (DTO) members. Why it hasn’t been solved so far So how does the administration, which is so committed to cleansing Mexico of this endemic corruption, accomplish this goal? The sad fact is, it can’t. Mexico is up against roughly 500 years of history ingrained into his people. It also has two other major things working against it: the economy and an organized crime crisis. **If the average Mexican citizen could make a fair living by living fairly, then corruption wouldn’t be seen as necessary. While corruption exists in the United States (and every country, for that matter), it exists to a much smaller extent because public servants – for the most part – earn a fair salary with which they can make a living. The Mexican economy is the 12th largest in the world, but the country has an extremely high rate of underemployment, and most people do not earn what Americans would call fair salaries for their work. Unless economic conditions in Mexico improve, the economic challenge to eliminating corruption will remain. SOLUTIONS 1. Mexico needs to implement powerful institutional solutions that change the incentive equation for government officials. Specifically, it should create  a new, fully independent and well-funded anti-corruption commission to work closely with civil society to oversee, investigate and catch wrongdoing by public servants. 2. The education in Mexico is a very important point in the corruption problem, if we have an ethical and moral culture, we would have a honest and transparent country. 3. This is a work for all the Mexicans.

The Renaissance Was A Time Of `` Rebirth `` And Changing...

The renaissance was a time of â€Å"rebirth† and changing thoughts. The time of the renaissance was between the 14th century and went to the 17th century.Prior to the renaissance, people of the dark age devoted their life towards god, the changing thoughts of the renaissance lead people to devote their life to learning. The people’s top priority was no longer pleasing God and doing good for God, instead they began to change their priorities. God was still a big part of people’s lives but there was also a yearn for education. Mathematics was a big part of the renaissance, because it helped to make advancement in all areas of learning. The changing values to the Renaissance lead to advancements in mathematics which lead to new art techniques,†¦show more content†¦The middle age was very focused on pleasing god. The renaissance re-introduced people’s passion for learning others topics then god. People believed that studying the subjects like history , literature and philosophy would help to understand the problems of humanity. The renaissance was very different from the middle ages because there were a lot of important people making important discoveries and producing a lot of very famous artwork. The renaissance was called rebirth because many people believed that the renaissance was a re-discovery of the world. There was a burst of enthusiasm for learning about everything. Math contributed to learning in many ways, new mathematical thoughts led to new art techniques. New math theories were also being discovered, and the same math theories that were discovered are used in schools today. Math was also beneficial to scientist and aided them in scientific discoveries. Art can be used to express something thing that words cannot. Math is a big part of art, it can help make a painting more realistic. Using math to get the painting more proportionate and realistic. Previously artist drew things that were more important bigger and things that were less important smaller, which created very unrealistic looking paintings. Renaissance painters were more realistic painters who worried about proportions, instead of drawing something that is important bigger and

Is China A Global Leader - 2903 Words

Is China A Global Leader? GEB-4890-905F14 Strategic Management / Decision Making Alexandra Little #22 Ryan Pennisten #26 Adalberto Frotman #10 Introduce China China, or People’s Republic of China, is a sovereign state located in East Asia. China spans 9.6 million kilometers making it the second largest country by land, only surpassed by Russia with 17.8 million kilometers. China is the most populated country on the planet with 1.35 billion people. Rich with history and tradition that goes back to ancient civilization, China has risen and fallen in power many times over. Within the last 30 years, China has become a dominant global leader once again and this has surprised many analysts due to their rapid success. Identify the†¦show more content†¦Being in the Guangdong province, which is on the southern coast of China where sea can easily transport goods, it is notable to inform that Shenzhen, Shantou, and Zhuhai are all located there. According to Secretary General of Boao Forum for Asia Long Yongtu, Modern-day China is characterized as having a market economy based on private property ownership, and is one of the leading examples of state capitalism. With 30 million counted private organizations expanding recently since the States economic liberalization, China still dominates in the strategic pillar sectors such as energy production and heavy industries. The Group of 7, G7, is a group consisting of the finance ministers and central bank governors of the seven major advanced economies as reported by International Monetary Fund. The countries include Canada, France, Germany, Italy, Japan, United Kingdom, and the United states. According to the IMF, China’s annual average GDP growth between 2001-2010 was 10.5%. Between 2007-2011, China’s economic growth rate was equivalent to all of the G7 countries’ growth combined. This was mainly due to a major housing bubble created by consumers and banks in the United States. China may have high productivity and low labor costs, however, their economy is highly energy inefficient; leading the world in energy consumed since 2010. The Chinese rely on 70% coal to supply their energy needs and according to BBC News they also surpassed