responses to classmates 3

125 word each with references and in text citations

one: In my opinion, outsourcing is a very good idea as long as it is being done the right way. It also depends on the business and the needs and requirements of the organizations. “However prior to outsourcing any component of your business to a third-party vendor, it is essential to understand the advantages and disadvantages of outsourcing. Although outsourcing presents a variety of benefits to your organization, it could also pose difficulties if not outsourced to the right service provider. (bdc, n.d.).” The advantages of having an In-house manufacturing is the organization is able to gain more control over production processes and assure the use of high-quality products which managing the materials being used as well as the workers. The company can also save on production costs and expenses when they purchase from a manufacture rather a supplier. If a company can do all the manufacturing in-house, keep the products in-house, and even ship in-house, then products can be delivered to consumers quicker, efficiently, and helps to reduce reduction is logistics costs. International businesses should determine these components when determining manufacturing in-house products that are not used frequently should be outsourced from independent suppliers. There are some cons to outsourcing such as, “Between 2001 and 2011, around 2.7 million jobs were outsourced from the United States to China (O’Brien, 2020).“ This means civilians of the US were left unemployed.

References:

bdc. (n.d.). The Advantages and Disadvantages of Outsourcing – FWS. Retrieved April 23, 2020, from flatworldsolutions: https://www.flatworldsolutions.com/articles/advant…

O’Brien, B. (2020, January 21). Pros and cons of outsourcing your manufacturing in the international business environment. Retrieved April 23, 2020, from tradeready: http://www.tradeready.ca/2014/trade-takeaways/pros…

Two: Outsourcing is a very personal choice. It depends on a lot of specific factors whether or not a business should choose to buy rather than make. The first and probably most important would be the cost-efficiency. Businesses that can reduce cost will more than likely add to their profits. “For the typical manufacturing enterprise, material cost account for between 50 and 70 percent of revenues, depending on the industry” (Hill & Hult, 2019). Outsourcing for cost-saving alone would be a valid reason to buy rather than make in my opinion. Many aspects of outsourcing affect cost. From customer service to manufacturing. The employee cost to outsource is a cost-efficient step for most companies. “Work that’s been outsourced usually ends up in third-world countries with a highly educated population. These outsourced employees usually cost less than their first-world counterparts, making them an interesting option to look into” (Fletcher, 2015). Another reason to outsource is to fill a need without the expense of hiring. “When you outsource, this allows you to avoid bringing an employee into the company, which saves you money on everything from benefits to training” (Bram, 2019).

References

Bram, T. (2019, October 2). Times when outsourcing is a good fit for your company. Retrieved from Investopedia: https://www.investopedia.com/financial-edge/0612/t…

Fletcher, D. (2015, February 15). Why Outsourcing Is A Good Thing For Your Business. Retrieved from nimble: https://www.nimble.com/blog/why-outsourcing-is-a-g…

Hill, C. W., & Hult, T. M. (2019). International Business: Competing in the global marketplace. New York: McGraw Hill Education.