Outsourcing Strategy in China Dissertation
Table of contents:
I. Introduction
Introduction
Research Background
Problem Statement
Research Objectives
Research Questions
Significance of the Study
Chapter Layout
Conclusion
II. Literature Review
Introduction
Cost Pressure and Outsourcing
Production Outsourcing Impact on Quality Management
Production Outsourcing on the Supply Chain Management
Outsourcing Relationship Management
Outsourcing Strategy Impact on the Company’s Management Team
III. Research method
IV. References and Bibliography
Appendix
Abstract
Outsourcing has considerable impact on operational and managerial processes in companies, results in redesign of the supply chain and influences product quality. Despite cost reduction, outsourcing practices can result in poor quality and lack of corporate control due to low visibility. The main aim of this study is to investigate the impact of outsourcing on companies in China relying on the case of a Chinese company which engages in outsourcing its production. CEO and three managers, who have managed the production outsourced activities during and five year period, were interviewed to obtain details about outsourcing practices in China.
Introduction
Introduction
China is the global leader in labor intensive manufacturing (Facts and details, 2012). Due to the low labor cost in China, many companies enter Chinese market to decrease the cost of production. China is among the world’s largest manufacturers of a range of products, including consumer electronics, textiles, clothing and household appliances. Also, Chinese companies increasingly focus on upstream and downstream partners besides managing their operations and reducing costs (Chen, 2011). According to the information provided by the Institute of Industrial Economics at the Chinese Academy of Social Sciences, China no longer has a lower labor cost advantage over neighboring countries (Mo, 2014). The labor costs in China have gone up continually over the past ten years due to the rapid economic development. The trends of the labor market in China are likely to increase labor demand, drive rise of minimum wage and lower the number of youth entering the labor force. Today, the workers in China look not only for higher salaries, they require better compensation packages as well, such as better working environment, living conditions and larger vacation duration. Higher salaries are essential for ensuring further factory personnel tenure (Global Sources, 2013). Despite these changes in Chinese labor market, this country remains attractive for foreign companies as an outsourcing option. Outsourcing has considerable impact on operational and managerial processes in companies and results in redesign of the supply chain and influences product quality. Despite cost reduction, outsourcing practices can result in poor quality and lack of corporate control due to low visibility. The main aim of this study is to investigate the impact of outsourcing on companies in China relying on the case of a Chinese company which engages in outsourcing its production. CEO and three managers, who have managed the production outsourced activities during and five year period, were …
