There is a distinct difference between outsourcing and offshoring. Outsourcing refers to an organization that contracts certain segments of their business to a third party. For example, an organization may outsource work to perform environmental studies, review contracts, or even customer service. Offshoring refers to the practice of hiring a vendor to do the work offshore. Organizations may take this route because costs are cheaper to do it offshore or regulations are more ...
This solution explores the concepts of outsourcing and offshoring. It provides an overview of the risks, criticisms, and benefits associated with each concept.
The solution addresses:
1) Explain the nature of competitiveness according to Porter and his five forces model. Explain each component in detail.
2) What are the major different between US and Multinational operation with regard to their affect on strategic management?
3) Define and explain value chain analysis (VCA). What role does benchmarking play in VCA analysis?
4) E-commerce and globalization are external changes that are transforming business and society. Explain these concepts and provide 2 examples which support this statement.
5) Explain the advantages and disadvantages of outsourcing and provide example of companies that use outsourcing as a strategic tool.