The Effects of Outsourcing on the Economy In recent years, outsourcing has become an increasingly popular alternative for some of the largest corporations in North America, who are looking for inexpensive ways of lowering overall costs. Outsourcing, which is the relocation of jobs to other foreign countries, has become a controversial new way of doing business. In considering the pros and cons of outsourcing, we have to ask some key questions: Who is benefiting for outsourcing? What types of jobs are being outsourced? What effect does outsourcing have on Americans?
Assess 3 factors that have influenced management operations (12mk) Management operations is heavily influenced by globalisation, technology and government policies. Management must consistently change and update its methods so the business can function successfully as the above factors are external and therefore can’t be controlled. As a result, having both beneficial and detrimental effects on businesses. The integration of economies has resulted in businesses being able to access a global market where they can sell their outputs of operations. Globalisation has successfully been able to achieve reduced costs for businesses through the establishment of a global supply chain.
1. What are the drivers of the RFID project? The drivers off the RFID project were to increase productivity, reduce cost which allows Boeing to process more efficient. Also by taking on the RFID project, it allows Boeing to better compete within the industry. They’re able to monitor and track the productivity within the supply chain allowing them to increase productivity in the sectors they feel necessary which leads them to processing more efficiently and effectively; which in results brings in more revenue to the company allowing them compete by investing more money not within the company but also within the future technology for the company.
Critically assess the new rules of globalization and Evaluate the impact this may have on a firms international business operations. The evolution of globalization has had a significant impact on firms international business operations due to a shift of global power from years of emerging market exploitation. The recent trends that have surfaced include the reduction of access to emerging markets, the increase of cross border mergers and acquisitions to fuel global economic growth and the protectionism issues presented by the growth of state capitalism. Business operations have changed significantly to adapt to the new challenges presented and strategies adopted by companies. These include careful selection of markets to do business with, negoations for regional and global free trade, becoming acquired by a foreign firm to gain access to resource rich markets and also business strive to become national champions in their own markets.
Outside –in thinking as opposed to inside out thinking is vital for successful product and service innovations. Discuss. Introduction Evidence shows that businesses that have the awareness to continually create, evaluate and successfully exploit their new ideas are more likely to survive and prosper in the competitive global economy. These ideas improve the way we do things and the things we make: the things that allow a business to remain competitive. Innovation Innovation can be defined as the process of translating an idea or invention into a good or service that creates value or for which customers will pay.
TNCs, firms that are able to coordinate and control processes and transactions within production networks, serve as the main driving force behind economic globalization we witness today. While the direction of economic globalization today seems to reflect the ideal - continuing expansion and mutual integration of market frontiers, the capitalistic and profit driven nature of TNCs have brought along its own share of problems. The costs of globalization are magnified in LDCs but the benefits brought along has helpe Economic globalization today is often synonymous with the creation of a greater primary industry in LDCs. TNCs tend to outsource labor-intensive jobs such as manufacturing and assembly to LDCs to reduce labor costs and maximize profits, tapping on comparative advantage at the same time. While the creation of jobs would greatly ease the unemployment problem and combat poverty effectively, the issue on exploitation of the workforce, particularly women should be considered.
A technological example is the introduction of new technology. Proactive changes come from within a business. Examples of proactive change include the introduction of new business activities, a drive to save money in certain areas, a need to reduce the number of staff, a change in the way business functions are organised, and to acquire new staff with specialist professional skills and expertise which the business needs but currently does not have. Section 2 – Understand the purpose of supporting change in a business environment 1. Identify the main reasons for reviewing working methods, products and / or services in a business environment.
What are the possible advantages of investing in the R&D center for advanced technologies? Discuss the implications, considering the changing perceptions and demands of consumers. The possible advantages of investing in the R&D center for advanced technologies are: improving profitability, differentiating from competitors, improving the quality of products, getting products to market more quickly, anticipating changes in the market (e.g. obsolescence of a product) and strengthening the brand. Through R&D, production costs can be significantly reduced to offer competitive pricing and/or increase profitability.
It also provides customer support in the form of consulting to these customers. HubSpot has reached a point where the company can provide limited service to a diverse set of customers thus needs to consolidate and target a specific group which can provide highest utility for its efforts. HobSpot should consider the expected Consumer Lifetime Value while selection of the target markets and should consider various ways to maximize it. Key implication of narrowing the target market is better service to the customer which will result into increased retention rates. As we know increase in retention rate in the customer segment has a significant positive effect on the CLV.
This strategy emphasizes the company’s ability to utilize its existing internal resources and focuses on streamlining operation through proper sizing and cost reduction. Even though this way could create short-term benefits to shareholder, this approach could negatively impact the company’s ability to adjust to external changes, especially rapid market and competitors’ changes. * Outside-in strategy: which is external market oriented strategy. Company makes the business decision according to the customer needs and market trends. It is “outside –in” thinking, which could help company to catch up with the market trend and develop products and services that meet the needs of customers.