• As the Operations Manager for any of the listed companies below, you are tasked with the decision to outsource part of their products or services for added value to the customer.
• Using the decision logic of outsourcing, provide a detailed Logic map to indicate what should be outsourced and what is to be kept in-house.
• Analyse the factors that influence your decision to outsource or to remain in-house using the 5 Performance objectives.
• Evaluate the risks involved in the process of decision making and recommend mitigating strategies to the risks.
Google is used as a search engine for the internet associated purpose, it is an American Company. In the early stage the founder of Google Company named it as ‘Back Rub’. The products and the services that are provides by the Google company are internet related. The products and services includes searching, Google translate, cloud computing, Motorola Mobile and the technologies which can be use for the advertisement purpose. Google believe that the company should raise the standard of product every time, for the customer’s satisfaction. In this context we will discuss about the decision made by the Google Company for outsourcing its products and services for added value to the customers, and also about the factors that influence the decision of the managers by using five performance objectives. At last the risk involved in the decision making process and the recommendation to overcome from the risk.
The products and the services offered by the Google organization should satisfy the customers for the ‘Value added’. Satisfaction of the customers in terms of psychological and the monetary value from the customer point of view. The Google Company wants that before offering any products or services to the ultimate customers any small or large scale industry should adapt their product (Uncles, East and Lomax, 2013). Now a day the current market situation is very tough, because there are so many competitors in the market for the same type of products and services. Value added has two spectrum of it’s, either value added increase the value of the product or it may rise in the price of the product. The value added process for the Google Company may be the unique products or services that offers by the Google. It also discriminate the same type products from one another, which help the Google Company for competitive advantage in the global market (Nell and Ambos, 2013).
The Google Company can out source its products and services to get the competitive advantage in the global market. For Google Company, out sourcing the products and services from outside can be the best way by which the company can stratify its customers. Out Sourcing the products and services can help the organization to increase the profit margin of the Google Company. Being an operation manager I suggest the Google Company that the company should outsource some of its product and service, from outside the company, or from the one who are expert to produce certain types of products. This Outsourcing may help the organization in various ways, for example; attaining high profit, the quality of the product will be good, if it is done by the experts, and lastly it will take less time than producing a product. The Operation managers can also take the decision to outsource the products and services for the value added purpose, as the quality of the outsourcing product will be good, and may be unique in type. In this competitive market the needs of the customers changes very frequently, so the Google Company should take the decision regarding outsourcing its product and services in order to satisfy the customers (Rutkin, 2014).
The measurement of the operational performance is very necessary for the Google Company, because it will provide the overall information and the current status of the Company (Quintana and Leung, 2012). Some of the important established operational performances are:
The operation Manager is the important person to take the decision about the outsourcing of the products and services of the company. There are several things which can take into consideration for outsourcing the products and services for the company. They are:
Complexity and Dynamics Process
Kept in House
With the low Strategic Importance Complexity and Dynamics: High Process
With the low Strategic Importance Complexity and Dynamics: Low Process
With high strategic importance Complexity and Dynamics: High Process
With high strategic importance Complexity and Dynamics: Low Process
The products that should Out Source:
The products that should be retain by the Company:
1. Quality: For the Google Company it is important to maintain the quality of the products and the services that are offers by the Company. It is the first priority of the Google Company, as the quality is the necessary factor to create the attraction in the customers. The Google Company cannot compromise with the quality of products, because if the quality of the products is not good than the customers will not buy the products from the Google Company (Kent, 2011).
2. Cost: With the maintenance of the quality of the products and services the Google Company also keep in mind that the price of the products shall not be high. As there is many competitors in the market for the same type of products and services and if the price of the Google products is high than no one is going to use the products and services from the Google Company (Uyiomendo and Tore, 2015).
3. Speed: It is also important for the Google Company to maintain the time. In this context we are talking about the delivery of the products to the customers, and also the time which required for producing the product. Now a day everyone is more or less busy with their work, so the customers prefer the online buying system, and also want that the delivery of the products should be on time (Frimpong, 2013).
4. Dependability: With the maintenance of the quality, speed another important thing for the Google Company is maintain the time. Time is regarding about the delivery of the time taken by the organization. If the customers buy online products, the organization give a specific time and promise to deliver the product on time. So the Google need to maintain the time as well to satisfy the customers (Sharma, 2013). The aspects of dependability are
Internal: In the internal aspects the Google Company is depending on its employees that they can manage the time and take less time to produce the products
External: In external aspect the Google Company try to deliver the ordered products to the customer on time, so that the customers can believe in the company.
5. Flexibility: The flexibility is also required for the Google Organization as, there is different customer who wants different types of products, for which the company have the flexibility in the working system to produce different types of products for the different customers. it is seen that in the time of buying the products online the customers go for different choice and look for the new collections of products, so it is necessary for the Google to produces different types of products (Bennett, 2015).
The operation managers always faces some of the risk in the decision making process. There is an obvious reason for the risk in the decision making process, as the decision may not be correct all the time. The risk involves like; the customers may loss interest to retain in the company, as a result the demand will also fall. If the demand of the products of the company falls then the company may face loss in the future (Sum, 2015).
In this context we have discussed about outsource of the Google Company, how the company and add the value to the products and services. The correction in the decision making process is important for the Google company. The operation managers is trying to reduce the risk that is involve in the decision making process.
Bennett, D. (2015). Importance of distinguishing between different types of health app. BMJ, 350(may07 7), pp.h2334-h2334.
BuendÃa, F. (2013). Self-organizing market structures, system dynamics, and urn theory. Complexity, 18(4), pp.28-40.
Frimpong, K. (2013). Service Orientation in Delivery: Perspectives From Employees, Customers, and Managers. Services Marketing Quarterly, 35(1), pp.54-67.
Hastings, A. (2014). Temporal scales of resource variability: Effects on population dynamics of structured populations. Ecological Complexity, 18, pp.6-9.
Kent, P. (2011). The decision to outsource management advisory services. Managerial Auditing Journal, 26(8), pp.672-696.
Lee, E. and Yin, Y. (2012). Off-shoring and out-sourcing for shareholder value: Promise versus reality. Accounting Forum, 36(1), pp.18-26.
Long, C. and Wong, R. (2014). Viral marketing for dedicated customers. Information Systems, 46, pp.1-23.
Nell, P. and Ambos, B. (2013). Parenting advantage in the MNC: An embeddedness perspective on the value added by headquarters. Strat. Mgmt. J., 34(9), pp.1086-1103.
Olson, R. (2013). Does It Make Sense to Outsource Utility Operations?. OPF, pp.26-27.
Quintana, R. and Leung, M. (2012). A case study of Bayesian belief networks in industrial work process design based on utility expectation and operational performance. Int J Productivity & Perf Mgmt, 61(7), pp.765-777.
Rutkin, A. (2014). Google Street View cars sniff out gas leaks in cities. New Scientist, 223(2979), p.20.
Sharma, S. (2013). Maintenance reengineering framework: a case study. Journal of Quality in Maintenance Engineering, 19(2), pp.96-113.
Sum, R. (2015). Risk management decision-making: the analytic hierarchy process approach. JIBED, 8(2), p.108.
Uncles, M., East, R. and Lomax, W. (2013). Good customers: The value of customers by mode of acquisition. Australasian Marketing Journal (AMJ), 21(2), pp.119-125.
Uyiomendo, E. and Tore, M. (2015). Subsea maintenance service delivery. Journal of Quality in Maintenance Engineering, 21(1), pp.34-54.
Xiang, C. and Tang, C. (2015). Securely verifiable outsourcing schemes of matrix calculation. International Journal of High Performance Computing and Networking, 8(2), p.93.
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