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case study 4 rtf

case study 4 rtf - company a lot of money which could allow...

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Jennifer Solomon Acct- 470 Case study- 5-13 1. Identify at least six reasons why companies choose to outsource or offshore a business process. Which of these reasons might Dick use to make his decision to outsource or to attempt BPR? a. Six reasons why to outsource or offshore a business process i. Cost savings - doing business with lower cost economies ii. Improve quality - Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost iii. Knowledge - Access to different places that with better intelligence iv. Reduce time to market- acceleration of the development or production of a product through the additional capability brought by the supplier v. Contract- Binding contract that you will receive your services or product in a certain amount of time and condition. vi. Resources - may not be available internally b. The reasons why Dick would choose to outsource would be cost savings, Improve quality, reduce time to market and the use of contracts would all benefit Hammakers. Any of the courses of action above would save the
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Unformatted text preview: company a lot of money which could allow them to expand their business or focus on new products. c. The problem that the company would face would have to lay off workers. As stated in the book many of the 365 workers have been there for well over a decade and in a way would be as if you laid off a friend. 2. Is producing automotive parts a “core” business process for Hammaker manufacturing? Explain. a. Due to the fact that the resources that would be needed to 3. Do companies ever outsource “core” business processes? Search the Internet to see if you can find an example of a company or an industry that out sources core business processes. What are they? Why are they doing this? a. 4. What social or legal issues might Demise consider? Be specific and explain why these issues might be important to Hammaker manufacturing. a. 5. What would you recommend if you were one of the analysts at the consulting firm? Explain....
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