International Business – Outsourcing or Reshoring?
For this assignment, you are required to select an established organisation engaged in international business and examine the business environment and its operations. Using this insight, you are required to IDENTIFY A VALUE CHAIN activity suitable for outsourcing to or re-shoring from an emerging economy. Your position is that of a consultant to a CEO of the business. You have been hired to conduct this analysis of the business using case materials, library research and electronic data sources.
Your analysis must demonstrate clearly the rationale for your decisions and implications for the business. In addition, you must also give consideration to relevant implementation issues and how the strategy can be implemented by the firm. You MUST engage with the international business literature and aligned your work more closely with KEY THEORIES in the field.
1. Select a company (Provide background information of the firm e.g. History, products, strategy, structure, financial status, future outcomes etc.)
a. Conduct an environmental analysis (internal and external e.g. History, customers, competitors, future trend)
b. Use TOWS Matrix at this stage to identify key value adding activities – Outsourcing vs. Reshoring
2. Why outsource or reshore?
a. Use an industry base analysis
i. Firm Level/Organisational Analysis
ii. Institution-based analysis
b. Dunning’s eclectic paradigm
c. Transaction costs
d. Motives for FDI: Market-Seeking Resource or Asset Seeking Resource
3. How can it be implemented?
a. Consider firm-specific features/institution-based issues
b. Timing e.g. Chart to articulate implementation plan
c. Stakeholder Analysis
d. Resource and capabilities of chosen organization
e. Think about institution-based view
a. How to improve?