Question

Select a firm you are familiar with and describe the activities that the firm currently outsources.

Discuss the derived benefits and identify some of the risks involved in 1-2 paragraphs.

Provide references if possible for revision.

Answer 1

Apple incorporation is global leader in technological solution and innovation dynamics. It has outsourced its manufacturing in Chinese locations so as to take advantages of cheap labor, low cost of product sourcing, and to save huge cost involved in bulk manufacturing of many smaller parts of its smart phones, I-pods and other devices. In Indian market, It has outsourced its HR activities, payroll and many of the sales, marketing and branding activities to national level expertise having firms.

In this way, it cuts cost as well as focus on its core research activities of innovation and brand value enhancement. The major risks associated with intellectual property rights and access dependency on third part vendors. We can also associate its design and patent theft by Samsung due to such activities easily as now days, Chinese people copied and traced core secrets of business by re-engineering the uniqueness of the international companies. Apple might forget its own capabilities of sales and marketing development.