Outsourcing a Division Regardless of the type of business or product line, international companies have realized that change is inevitable to maintain a competitive advantage in the global marketplace. Organizational change can lead to a review of overall operational strategy or the need for an organization to expand its business practices globally. Some organizations expand the distribution of their products to users in other countries, while other organizations may choose to outsource their services. Outsourcing has become a means to gain competitive advantage, now and in the future (Broedner et al. 2009, Kroes and Ghosh 2010, Wee et al. 2010, as cited by Yang, Wacker, and Sheu, 2012). Whether they decide to expand their products or services, organizations often review their operational methodology when operating outside of their home country. This document presents information related to critical thinking and decision-making skills that can help managers when tasked with outsourcing services or conducting operations in another country.TLS, Incorporated is an international company that manufactures work boots/shoes, gloves and hats. The company has been in business for only 5 years; However, due to the high demand for its services, the company decided that outsourcing one of its divisions could speed up the manufacturing process and increase organizational profits. In today's market, companies must consider the entire supply chain, from reduced production costs to shorter delivery times (Dekker, 2000). Given the expansive growth that had occurred in such a short amount of time, the company knew it needed to constantly review its operational strategy and adjust its business practices as needed. In a different context,...... middle of paper......or business practices for various reasons; the main reason referred to is cost benefit (Isaksson & Lantz, 2015). Before deciding to outsource, TLS management examined the pros and cons of outsourcing and determined that the benefits outweighed the risks. An effective approach for managers to evaluate the potential outcomes of outsourcing is to use a decision model. Whether managers prefer prescriptive or descriptive decision making, during the decision process organizations sometimes evaluate the situation to determine whether outsourcing will meet its expanded or newly implemented operational strategy. TLS Incorporated - manufacturing company - has chosen to outsource a division abroad; the TLS manager predicts that, based on decision-making skills and critical thinking processes, the decision to outsource will benefit the organization as a whole.
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