Change and Continuity in Contemporary Business - Реферат

At the same time to increase the value of the brands, companies reduce the number of local brands, using a global branding. Most firms accomplish this by reducing the costs of adaptation to local conditions and the general lowering of costs to source/deliver their brands to international markets which contribute to increase the value of brands-this is called a global strategy.However, nowadays any company may face competition in anywhere in the world. Most of the world’s largest companies have ability to produce and operate their products and services in many other countries, and they have global brands which can be famous in the world. Globalization of the world economy leads to a constant increase of international competition between products, companies, sectors and countries, resulting an aspiration of main actors in international economic relations to enhance their competitiveness in the global economic environment, by using advantages of international division of labour, and deep eningparticipation in it. Many analytics say that most of these change efforts fail to achieve companies’ goals, putting even more pressure on managers to find a new major innovation which can help the company to be more competitive.Outsourcing gives each company a chance to succeed in the new global world of business. It enhances communication between the companies in the different countries, increases business opportunities by expanding the horizons of cooperation, adding cooperation increasing liability. Outsourcing is based on a system of delegation, introduced to the development strategy of the company, as well as the qualitative change in the mechanisms of specialization and cooperation in many spheres of economic activity. Deciding to outsource the firm will save resources (time, money and management attention) required for primary production, to create a competitive advantage. It changes the nature of the majority of employees in the company, resulting in the amount of work in certain areas is reduced (corresponding to the jobs are released) and creates jobs in new and promising directions.

outsourcing business model

Doing research about outsourcing we came to the following conclusions: At the end of XX - beginning of XI century qualitatively new kind of business activity was outsourcing, sweeping thousands of companies in most states. Outsourcing gives each company a chance to succeed in the new global world of business. It enhances communication between the companies in the different countries, increases business opportunities by expanding the horizons of cooperation, adding cooperation increasing liability. In fact, modern outsourcing is the internationalization of industrial relations, which is due to the emergence of a technological revolution and development of communication tools. Outsourcing is based on a system of delegation, introduced to the development strategy of the company, as well as the qualitative change in the mechanisms of specialization and cooperation in many spheres of economic activity.

Consequently, decisions about outsourcing are taken primarily on the basis of development strategy and the estimated level of efficiency’s longterm goals of the company. At the same time outsourcing of activities that cannot in the foreseeable future become one of the root of competencies that provide a strategic advantage in their respective markets, can be regarded as a fundamental principle of doing business today. Deciding to outsource the firm will save resources (time, money and management attention) required for primary production, to create a competitive advantage.

Moreover, in the mid-90s, improvement of business forms led to the outsourcing of business process, which involved the transfer not only of certain functions, but also certain manufacturing or service processes as a whole. In this case, a company usually moves personnel, transfers information of production, restructuring of the manufacturing process of the company. This helps to achieve goals such as: reducing costs, reducing the time for innovation, speeding up of entering into the market with new products, increase market value, etc. Along with the external outsourcing, there is growing internal outsourcing, which is closely associated with the system of delegation of authority within the company. Employees have the right to act independently and to solve tasks in the framework of delegated authority. In addition, each employee is responsible for their actions and inactions. Managers are responsible for additional managerial decision making. Delegation of authority within the company enables us to construct a coherent system of corporate linkages, both vertical and horizontal organization, to reveal the initiative and enterprise of employees, to establish a collegial cooperation. At the second level of delegation of authority takes place between business units, i.e. Outsourcing is developing within the company. The advantages of outsourcing within the individual companies can be implemented in main business strategies.

This strategy aims to reduce the number of employees and tax payments.

It saving costs transferring expensive jobs from developed countries.

Give good opportunity for developing countries creating new job places.

Fast deliver of product or services and good connections between companies over the world.

It changes the nature of the majority of employees in the company, resulting in the amount of work in certain areas is reduced (corresponding to the jobs are released) and creates jobs in new and promising directions.

This is along term strategy which includes a pre-stage the first two strategies. It involves the systematic work of top management to involve employees in the process of large-scale changes in the company"s management and competitiveness.

The use of outsourcing and delegation of authority is a necessary methodological principle of transformation of the management of American companies in the face of increasing competition and the development of processes of economic globalization.

Reference list

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2. Richard H., Alexander V., (2007), American Outsourcing, Harvard Business School.p.p.-2-10.

3. Adamov H., (2009), International experience of development and use of outsourcing, (Journal), p-34

4. Nicholson Brian, (1998), Control of relational risk in offshore accounting and finance outsourcing.

5. Gail Forey and Jane Lockwood, (2009), Globalisation, communication and the workplace. p.p.29-35.

6. Milgate Michael, (2001), Alliances, outsourcing and the lean organisation, p.p. 31-39.

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20. Richard H., Alexander V., (2007), American Outsourcing, Harvard Business School.

21. Adamov H., (2009), International experience of development and use of outsourcing.

22. Nicholson Brian, (1998), Control of relational risk in offshore accounting and finance outsourcing.

23. Gail Forey and Jane Lockwood, (2009), Globalisation, communication and the workplace.

24. Milgate Michael, (2001), Alliances, outsourcing and the lean organisation

25. Minoli Daniel, (1995), Analysing outsourcing; reengineering information and communication systems.

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