Outsourcing And Outsourcing : Outsourcing

Decent Essays

A company is a collection or an association of given individuals regardless of whether legal individuals, natural people of a combination of both. Most companies usually face stiff competitions from their worthy opponents in the field of services delivery to customers. They in most cases compete in terms of the goods and services that they produce and offer to their customers. Competition is mainly the rivalry among the companies, firms, sellers in references to achieving their goals of making profits, selling large volume of their produce, having the largest share of market sale by varying the marketing prices, the distribution of products and even promotions. Therefore to achieve better competition so as not to lose to other competitors, …show more content…

When the offshoring is to be done so as to beat the competitors, the stakeholders will be affected in that the suppliers of the raw materials will be disadvantaged due to stoppage of their supply as a result of sourcing cheap raw materials and a reduced delivery cost from other countries. The community surrounding the company will also be affected as the suppliers since it’s the source of the raw material while the owners will be advantaged by the reduced production cost leading to high-profit gain.
The transformation change of the management plan has mainly been initiated by the small sales and losses incurred by the company. When the competition has been lost to other companies, they attract more customers and sell more. This stiff competition has therefore initiated a new transformation plan on how to change the system of the management plan to catch up with competitors in the field. The changes like offshoring are therefore meant to ensure reduced cost of production and low delivery cost of the ordered items which will translate into affordable products prices to customers to help in attracting the customers in the market platform (Bruno Dyck, 2008).
The plan of offshoring is of advantages as far as matching the stiff competition in the field is concerned and also disadvantages too. The stakeholders such as the owners, creditors, directors

Get Access