Every organization has its plan on how to execute different operations for achieving the set goals. Corporate strategy shows how to implement these activities and the expected results for the organization. Some of the activities have little impact on the overall performance of an organization and therefore the management takes an option of outsourcing them from the external markets. The company gives core businesses the first priority because they are the source of revenue for the company and better strategies taken towards their success.
Corporate Strategy, Outsourcing and Core Business Focusing
Corporate strategy shows the patterns of an organization which portray ...view middle of the document...
The high rate of technology also makes all the operations in an organization to be technologically driven and require extra knowledge in implementing the laid down strategies. Since the process of incorporating the whole idea is more expensive, most companies move away from this structure by investing on the internal resources which are likely to be of competitive advantage and at the same time engage in the external market through outsourcing. The outsourcing strategy assists in lowering of costs in an organization by making use of the market service providers at a lower cost (Dalal, 2011).
External turbulences are the external factors which interfere with the overall performance of a business enterprise by mainly affecting the internal functions of an organization which includes the corporate strategies and mainly come up because of competition. Organization faced with these effects achieves low returns and consequently fails to meet the target points leading to conflicts within the organization as the members blame one another for the failure. In order to avoid these entire shortcomings the organization takes the option of outsourcing some of its investments and mostly focuses on the organization’s core business components. Such core business components include; the supply-chain management, the human resource department, logistics, and finance where there is competitive advantage (Huber, 2011).
Examples of outsourcing in a company
In a company involved with order fulfillment, most of the order filling is done online and therefore the company outsources the service to the other companies with e-commerce expertise therefore saves the cost of renting a warehouse and thus pays more attention on the core business. Another example is of a...