When deciding to outsource, there are risks such as quality issues, security issues and personnel issues. There are also various benefits to outsourcing such as the ability for the staff to focus on core related business functions. The vendors normally have access to better technology that would otherwise only be available with a large investment by the organization. Costs associated with an outsourcing agreement are primary, secondary and incremental. The implications of outsourcing for the business can be to strengthen the business structure or can lead to a weakness.
E. Usually when operations get close to capacity limits, costs go up. Bottlenecks are more common, there may be congestion in the plant, and production could slow down. These costs need to be considered when setting a price for a special order that will move an organization out of its normal operating range (relevant range). In addition, managers need to think about whether the business will lose some customers because demand cannot be filled. ------------------------------------------------- 4.42 Make or Buy, Qualitative Factors - The Vernom Corporation A.
Without prior market penetration of an organization’s competetitors, the usefulness and effectiveness of properly marketing a new product or service can be quite burdensome. This is due to the fact that an organization runs a major risk of constantly striving to maintain its customer base, as the new type of product or service has not yet been introduced into the maintstream. Additionally, pricing may be an issue based upon: Should pricing be very low to attract new buyers?, or Should pricing be set high to offset initial entry into a new marketplace? These are the questions that an organization must face, but for the most part, being a
As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department. For this information to get to the finance department a lot of time would have been wasted and also for the finance department to reply to them, all this would cost them a lot of money. Advantages of Sainsbury's is that the power they have would be successful for the business as when work is being done the communication of the workers together when given commands from the manager and having to work better for the manager to impress them in order for more work to be done and at a more well-organized rate then if there was no pressure from the manager. Disadvantages would be that the workers would start to get stressed from having to complete the workload at too fast a pace for them to work at all times that they will start to work less and dislike there job and some days may not want to work as they are stressed to do work which is too much for them to cope as they are trying too hard to impress, this could lead to employees wanting to quit their job. Advantages are that when having to complete work set out by the manager to the employees it can be done efficiently so that the manager will be able to assess the employee and they could get a promotion to a higher part of their job.
For instance, if a customer’s order gets messed up or out of place then that messes up the other orders as well. In order for things to run smoothly, the employees have to be able to deal with massive amounts of people on a regular basis. A company's labor costs affect its OMM operations by being the largest expense that it will have. A company must leverage its payroll expense by meetings the profit goals they set. A company's inventory is a vital part towards its success.
Unit 16 – P1 Notes Internal factors Organisational needs - The workforce needs to be able to adapt to changes. Demand for products and services will affect the number of people needed in certain roles. Businesses can look to move into new markets - this could mean abroad and staff needing new skills such as languages. More staff may be needed in distribution if the business grows. Technological change can also affect the internal working arrangements - machinery leads to redundancies, new training may be needed etc.
Also you can find out what caused the problem. This may also go down in the computer misuse act. Considerations of costs: troubleshooting and repairing a business system can cost a lot of money, and you have to consider the time it is going to take as well, and one problem may lead to another, which will mean more labour, and a bigger cost. Systems downtime: you also have to consider the amount of time the systems are going to be down for, which would impact the individual users productivity, and it would slow down work, and not be able to do work on the systems. Disruption: troubleshooting and repairing a organisations computer systems could have a disruption to work on the computer systems, and can have a knock on
The weakness of Kudler Fine Foods is that an IPO (Initial Public Offering) has many inherent and potential weaknesses that must be examined prior to selection as a means for expansion. An IPO is the first sale of stock by a company. There are many advantages and disadvantages for the Kudler Fine Foods to go public through the IPO. The advantages include generating more capital needed to expand their three locations The IPOs are very expensive undertaking, and a large portion of any capital acquired will be lost to this cost. Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods.
In-depth research and analysis needs to be conducted on other companies that have created similar successful programs. They need to determine what the breakeven point will be, and when these new products will start generating a profit and then make the decision on whether or not it’s worth the investment. Issue 5 Lack of planning CanGo is in rapid development, but at the same time lacks of any sort of planning. CanGo's management team cannot seem to reach a viable solution for the future development of the company. Recommendation 5 CanGo needs to make a comprehensive analysis and then decide on a long-term development plan.
Another trade-off for the company will be the stores performance. Because this is a newly acquired system, employees – although trained on how to operate the system will surely run into issues at the register. This will make for longer lines at the store and will require employees to handle unruly customers. The trade-off for spoilage will require the store to account for more deliveries from wholesalers for the products that will need to be stocked. This will ensure more delivery fees and more paperwork for the company.