BBA 2010 Unit III Assessment Essay Question 2

Unit III Assessment Essay Question 2:

Outsourcing, offshoring, and foreign entities affect the operations of businesses in the United States in many ways. Views on these practices vary with both positive and negative effects being expressed by both sides. Global outsourcing and offshoring arises when organizations turn to outside nations in favor of less expensive resources and materials, including human resources. In doing so, companies may transfer certain contracts that once belonged to organizations based within the United States and award them to internationally based organizations in favor of these cheaper wages and resources. Some suggest that global outsourcing negatively impacts the United States as it detracts from the availability of jobs within the U.S. Others argue that the practice provides jobs and opportunities to improve developing countries by increasing commerce and providing employment to individuals who otherwise may be unemployed. While this practice may in fact take away from domestic job availability, the lower cost of resources and wages allow companies to manufacture products at a cheaper price, therefore allowing companies to keep costs to customers down as well. Additionally, operating in the international environment allows domestically based companies who outsource, to expand and develop markets outside of the United States that they may otherwise not reach.

The management functions of planning, organizing, leading, and controlling would all apply to outsourcing an offshoring just the same as they would domestically. Outsourcing and offshoring would need to be planned, organized, led, and controlled in order to ensure successful business practices are employed and assist managers in achieving organizational goals and objectives. While all aspects would still be involved in offshoring and outsourcing, practicing them in the international environment could prove to be more difficult than practicing them domestically. The global environment is susceptible to rapid change which can present unforeseen challenges to managers. Effective planning in this area is key to ensuring businesses are prepared for these changes with uninterrupted operation. Successful planning would allow managers to establish effective organizing, leading, and controlling functions within the global environment.