¶ … global impact, as well as how it related to the programmatic level. Based on that original idea and any feedback you received from your classmates in the Discussion, you will extend that idea and develop an outline for a logical, scholarly argument on the topic
Trend in the field: Offering high quality, low-cost products through outsourcing
Like many businesses, my bus company is faced with the challenge of offering low-cost products in an increasingly competitive international transportation marketplace. Globally, no single autobus firm can command more than 20% of the marketplace (Global bus market, 2013, Free Patents Online).Our buyers want products that are of high quality, meet national safety standards, and yet are priced competitively. To meet this challenge, many companies, including my own, have used outsourcing as a way to lower labor costs. We have recently opened up a factory in China. The decision was a difficult one, and required a great deal of soul-searching and cost-benefit analysis but was ultimately worthwhile. This factory also establishes out outpost in the critical area of the Far East, in the region's most rapidly-growing economic powerhouse and allows us to build buses for the Chinese marketplace in the nation where they are sold, which conveys another advantage to our company (Global bus market, 2013, Free Patents Online). Our company believes that despite some of the problems regarding outsourcing in China, the benefits outweigh the potential detriments [THESIS].
It is true that many companies have fallen afoul of the outsourcing process because of insufficient oversight. The Mattel toy company lost critical market share when it...
At the time, this was considered particularly shocking because previous to the revelation Mattel was often used as an example of a company that had found a way to do business 'the right way' with China. Because it wishes to keep its toys at a low price point Mattel manufactures 65% of its toys in China, but owns most of the factories, which should theoretically give it greater quality control, versus using cheaper, local manufacturers who do not obey international or national safety standards (Barboza & Story 2007).
But Mattel's final products still failed to meet safety standards and it was forced to recall its Chinese-manufactured toys. For a company that relies upon a positive perception of safety amongst its consumers, this was a devastating blow to its marketing and sales. My bus company similarly relies upon the perception that it is trustworthy and safe, otherwise no one will wish to patronize it. Standardization and quality control amongst all of our international operations are essential, although this can be difficult, given the variability of local laws, conditions, and cultural attitudes.
Every company that engages in outsourcing must ask itself: do the risks outweigh the benefits? More specifically, are the risks of compromises in quality control outweighed by the potential benefits? Even for companies which do not outsource manufacturing, outsourcing other aspects of their operations, such as call centers, can generate a slew of unhappy customers if the outsourced work is not up to expected standards. In the case of Mattel, although the company owned…
