Question 1: Critically evaluate the competitive advantage that can be gained by companies through IS/IT outsourcing. Provide suitable example to support your answer. Outsourcing can be defined as one option for the company to using the outside skills, for example like foreign worker or machine in term of expertise or skills that they don't have within their organization and from that, the option is they will turn to outsourcing to solve their problems. Now days, many of business using outsourcing for what they need to serve their customers, both internal and external and also to solve the problem. In business too, the concept is external customer is the entity that ultimately purchases company product or services, while an internal customer is the company own employees or shareholders.
In order for a company to stay externally competitive, it needs to have a diverse work force and offer divers forms of pay. Organizations will develop different strategic compensation policies based on their operation and other important variables. A well-structured compensation system could have a major impact on employee’s behavior, performance and effectiveness in that company. Most compensation systems reflect the value of the company and how the company treats their employees. Employees look at the pay system of any company and they get a general idea about the company.
The boundaries of which activities are to be performed inside the firm and which to be out-sourced from markets are demarcated as vertical boundaries of the firm (Besanko et al 2009). Therefore, it is possible for the firm to source components they need from competitors. However, the firm need to resolve the make-or- buy decision by comparing the benefits and costs of performing the activity itself as opposed to purchasing from competitor’s firm(Besanko et al 2009). This essay will firstly discuss the advantages and disadvantages of outsourcing from competitors. Then two solutions will be applied according to the risks of outsourcing.
A company may seek a strategy to identify who are the customers, which services to offer and how they can operate efficiently. Strategy entails an organization matches its resources and capabilities to the external environment to achieve competitive advantage (Lado & Wilson 1994). Organizations set goals to achieve. The organization will therefore analyse the problems which the firm face, and then formulate a strategy and implement it to achieve competitive advantage. Strategic making process therefore: 1.
Market need is uncertainly, to meet customer expectation, company have to learn what their want and provide it on time. Marketing research therefore can be called that is one of the factor that force company’s ability to supply expected goods or service to market by mean of learning about consumers and respond their need. (Trim et al 2006, pp205-206) Good research should be objective and provide precise information for companies because that influences to manager whose make decision and develops business plan or strategy from that data. Moreover, Trim et al(2006, p209) argue that ‘marketing strategists need to be able to use the findings of qualitative marketing research in order to influence board level thinking and actions.’ that necessary for manager to ta... ... middle of paper ... ...y want company to improve quality of similar product that company already got. This comment might come on extra comment in questionnaire that researchers give to respondents.
The decision to outsource is often made in the interest of lowering firm or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources. Process of Outsourcing 1. Outsourcing Decision - The decision to outsource is taken at a strategic level and normally requires board approval. The process begins with the client identifying what is to be outsourced and building a business case to justify the decision. Only once a high level business case has been established for the scope of services will a search begin to choose an outsourcing partner.
So, in comparison “Quality training” offers: • National recognized qualification • Stand-alone • Training needs analysis D. Competitive comparison: Comparing to Quality Training it is vital to analyze the competition in target market. Furthermore, it is important to outline and maintain a loyal customer. Being specific with comparison and include management responsibilities with dates and budget and making sure to track results. Quality Training competitive comparison includes: • Analysis of competitors • Risks and opportunities • Strategies to overcome perceived threats and weaknesses E. Market analysis Summary: Market analysis provides an overview of the industry sector that your business will be a part of, including industry trends and estimated industry sales. Also, an investigation of direct and indirect competitors should be included, with an assessment of their competitive advantage and an analysis of how to overcome any entry barriers of the chosen market.
The Rationale for Cost management Organisations have to incur costs to carry out their business and cost management is a part of business which helps the management to steer the company on the smooth road.In the article, an attempt has been made to explore the philosophy of cost and the ways to control it to stay competitive. Both quantitative and qualitative aspect of costs are important ,too much adherence to quantitative aspects might erode the benefits of qualitative aspect of the cost. Effective managers have the wisdom to recognize the qualitative aspect of the cost and it is a sine qua non of their strategies. An astute manager not only focuses on the internal cost management(ICM) but also the interorganisational cost managemen(IOCM)t.The scope of cost management is not limited to quantitative analysis but it is an overall concept. It is generally accepted that one of management’s primary roles is to optimize profits by controlling costs effectively.
The marketing helps the operation manager in planning, organizing, budgeting, to make the project successful. By the marketing activities the company learns the customer behavior such as what’s trend is going on, competitors behavior etc. it is very helpful for the operation managers to identify the unmet needs in their production for the targeted customers. It’s necessary to know the customer’s needs because if the product meets all the requirements of the customers, then they make demand which is necessary for the company to maximize as a profit. The sales department is a key ingredient in company to make a long term relationship with customers.
Marketing Versus Supply Chain Management In the business field, there are many career paths that you can choose after you have attained your education. To best select potential options for careers, I have narrowed them down to Marketing and Supply Chain Management to show the differences and similarities between both careers. Supply Chain Management deals with sourcing raw materials to manufacturing goods, delivering the products, and the point of sale (BusinessDictionary.com). While marketing is where the company targets their audience to specific products to increase their revenues. These professions have a high demand outlook within the business world.