Regardless of the type of business or product line, international corporations have realized that change is inevitable in order to maintain a competitive edge in the global marketplace. Organizational change can lead to a revision in the overall operational strategy or the need for an organization to expand its business practices globally. Some organizations expand distribution of its products to users in other countries, while other organizations may opt to outsource its services. Outsourcing has become a means of obtaining a competitive advantage, now and into the future (Broedner et al. 2009, Kroes and Ghosh 2010, Wee et al. 2010, as cited by Yang, Wacker, & Sheu, 2012). Whether making the decision to expand its products or services, organizations often review its operational methodology when operating outside of its home country. This paper presents information that pertains to the critical thinking process and decision-making skills that may assist managers when tasked outsource services or to conduct operations in another country.
TLS, Incorporated is an international corporation that manufactures work boots/shoes, gloves, and hats. The company has only been in business for 5 years; however, due to the heavy demand of its services, the company has determined that outsourcing one of its divisions may expedite the manufacturing process and enhance organizational profits. In today’s marketplace, companies have to consider the entire supply chain, from manufacturing cost-reduction to shorter lead times (Dekker, 2000). With the expansive growth in such a short amount of time, the company knew it had to constantly review its operational strategy and adjust business practices as necessary. In a diverse,...
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...or business practices for various reasons; the primary referred to motive is costs benefit (Isaksson & Lantz, 2015). Prior to making a decision to outsource, TLS management reviewed the pros and cons of outsourcing and determined that the benefits outweighed the risks. An effective approach for managers to assess potential outcome of outsourcing is by using a decision-making model. Whether managers prefer prescriptive or descriptive decision-making, during the decision-making process organizations sometime assess the situation to determine if outsourcing will satisfy its expanded or newly implemented operational strategy. TLS Incorporated - a manufacturing company - opted to outsource a division abroad; the TLS manager anticipates that based on decision-making skills and critical thinking processes, the decision to outsource will benefit to organization as a whole.
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