Strategic management deals with any large intended initiatives taken by the management of a company on behalf of the owners or stake holders which involve the utilization of resources in methods that enhance the company’s overall performance in the external environment…
In quite a few cases a balanced scorecard is utilised to assess the overall performance of a business enterprise in trying to meet its delineated objectives and goals. There has been growing support for strategies that originate from the stakeholders and for the use of balanced scorecards that include the needs of all stakeholders. Proper strategic management ensures that the business efforts and resources are optimised to meet the various goals and objectives.
The lack of strategic management in a business’ operations indicate that there will be wasted time, effort and resources and the stakeholder’s needs will not be met with as well. The overall effect will be inefficient business operations which would lead to decreasing revenues and it may also cause stakeholders to shift over to other businesses. The kinds of strategies being used depend largely on the business in question as well as on the external environment for the business. For example a global or transnational organisation would use a structured strategic management model while a SME (small and medium enterprise) would use an entrepreneurial approach to strategic management. (Johnson et al., 2008)
Victoria’s Power Industry and Outsourcing
Latrobe Valley produced over 90% of the energy needed for Victoria. The valley was dominated by the energy industry based on the coal reserves present nearby. In order to facilitate the growth of industry and to keep employment levels high, the Australian government invested in the power industry in Latrobe. Consequently the power industry in the Latrobe region was overstaffed to a large degree. Often one task was performed by a number of different employees because overstaffing was present. Moreover there was a conception that workers in the Latrobe power industry followed militant unionism actively. While unions were present in large part and most people were members of unions but it did not indicate that the unions were causing trouble. Some studies have even suggested that the workers in the Latrobe region displayed lower union activity (marginally) and the union activity was more centred on events outside the valley such as general worker problems in Australia. (Fairbrother & Testi, 2002) Given the militant image of the unions in Latrobe and the cry of inefficiency in operations spurred the government to take action. This was achieved by privatising the power plants in the Latrobe valley to multinational corporations. The advent of competitive business vendors meant that labour force trimming begun immediately. In an effort to optimise their business operations, the new companies went for outsourcing of tasks. This resulted in the removal of thousands of people from their jobs in the Latrobe region. The already high employment levels were replaced by high unemployment levels. The net effect was migration which further caused imbalances in the demographic composition of the region. (Fletcher, 2002) Strategic Thinking and the Growth of Outsourcing Outsourcing has certain advantages over conventional employment practices. In general, outsourcing enables businesses to meet their objectives better at reduced costs. This provides a lot of incentive for various businesses to outsource their operations. The various strategic reasons that encourage outsourcing are: Reduced Costs: Outsourcing enables employers to connect to cheaper labour markets such as those ...
Cite this document
(“Outsourcing: reasons, advantages and disadvantages Essay”, n.d.)
Retrieved from https://studentshare.net/business/1524-strategic-management
(Outsourcing: Reasons, Advantages and Disadvantages Essay)
“Outsourcing: Reasons, Advantages and Disadvantages Essay”, n.d. https://studentshare.net/business/1524-strategic-management.
Outsourcing has become a major business in today’s world.Most of the big companies outsource their work which is not their core operation. To understand outsourcing one has to know what does outsourcing means. Outsourcing can be defined as contracting out a work which is not the core function of the business.
This paper begins by defining outsourcing and then describing the different forms of outsourcing. Next it outlines why organizations opt to outsource and how they select what to or not to outsource. The paper then dwells on the advantages and disadvantages of outsourcing from two perspectives: from the point of view of a company and from the point of view of the country.
The outsourcing opened new avenues for business organizations to utilize large pool of skilled sets and expertise without incurring any significant investments. It entails very low cost burden for business firms and offers wide opportunity for business firms initiated the operation with proportionately low financial resources (Weerakkody and Irani 2009).
Outsourcing and offshore outsourcing have increased to great extents but it has been also found out that there are certain risks and negative externalities attached with outsourcing. The paper through discussion of the benefits and disadvantages will exhibit evidences to show whether the advantages of outsourcing outweigh its disadvantages.
It is a task or an operation that can be done by employees of the internal organization but are instead contracted to a service provider for a significant period of time. The service provider can be offsite or onsite but the most common method of outsourcing is off shoring of activities to different developing countries like India or China.
However, there are many different types of outsourcing that a firm can choose to implement so it is imperative that business managers make a choice that best suits their business. When CEOs are deciding upon what type of outsourcing strategy to pursue, their telecommunications company needs to think of all the advantages and disadvantages.
Outsourcing basically involves contracting out non-core business functions to a provider external to an organization. In other words, when two organizations enter into an outsourcing agreement, one agrees to exchange a certain service or set of services for payment by the other.
Advantages and Disadvantages of Conducting Business Offshore.
Offshore company relates to the incorporation of a company overseas, and it is utilized in a way that investors are able to avoid tax laws imposed to business in their home countries. Moreover, the offshore are legal in any if they are set for the right purpose regarding the business in which they are involved.
be outsourced and the advantages and disadvantages of IT/IS outsourcing to the outsourcing organization. With the help of a real life example of the use of IT/IS outsourcing (i.e. an outsourcing contract) this paper will critically analyze the advantage and disadvantage of IT/IS outsourcing and various factors associated with it.
There have been many reasons for the companies to outsource there is business and some of them are trying to cut costs of IS services, the demand for good quality systems and the inability of the company to establish complex computer systems. The major hurdle in
12 Pages(3000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Outsourcing: reasons, advantages and disadvantages for FREE!