In the last few years, companies opted to outsourcing to reduce expenses and increase revenue. However, despite its cost-effectiveness, there is a lot of risks to be considered and evaluated before engaging into outsourcing. To reduce the risk of outsourcing, Mike Dunn’s company should check the economic status of the country. Moreover, the outsourcer must ensure the stability of the outsourcing the company as well as its track record and experience. A company must ensure that the outsourcing firm can take on a long-term business relationship.
Another risk that a game developer face is the security and intellectual property rights. The company must include a clause stating the outsourcing company’s responsibility to protect the intellectual properties and crucial information about the company in the contract. Non-disclosure agreements and copyrights or patents can ensure security in the intellectual property of the outsourcer. A good understanding of the country’s laws pertaining to protection of the outsourcer’s trade secrets and customer privacy is essential before outsourcing.
In terms of quality and standards, the company must clearly lay out its benchmark in agreement. 2. What should they outsource? If ever Mike Dunn’s company decides to outsource a part of their software development activities, they must outsource the least critical and crucial projects to the outsourcing company to further ensure security of information and trade secrets. 3. What are the outsourcing trade offs with respect to performance criteria such as risks, costs, quality and control?
The main trade off of outsourcing with respect to performance criteria such as risks, costs, quality and control are the lack of hands-on command and authority to run and manage all the aspects of the company. However, an outsourcing agreement can be cancelled due to non-compliance of all the requirements stipulated in the contract. BankUSA: Credit Card Division Case Study 1. What are the major problems facing the credit card division? The credit card division of BankUSA is facing a problem regarding the marketing division’s recent survey results.
The president, Ms. Juanita Sutherland, believes that the company’s operational measures are good as contrast to the survey’s results. A mismatch between the company’s data and the perception of the customers’ on the company’s performance differs. 2. What steps are required to develop a good internal and external performance and information system? The problem should be identified and recognized and information should be gathered based on the problem. Define the requirements for the information system and the system design.
The system can be constructed after that and carried out after the construction. 3. How should internal and external information be related? In the Exhibit 3. 7, it can be noticed that the New applicant processing time is at its lowest in month 15, however, the customer satisfaction percentage is at its highest in Month 14 and the Plastic production turn around is at its lowest in the month 13. The customer service index should be directly related to the improvement of the service turnaround but it did not. 4. In the real service level, what is measured: internal or external?
Real service level should be measured using internal information which is expressed as a percentage of a goal. For example, the percentage of time a system is operational or the percentage of successful transaction processed. 5. What are your final recommendations? The company has identified the problem on the absence of relationship between the internal and external data. A new survey questionnaire should be formulated based on the operational strategies implemented to measure the perception of the customers on the company’s performance. Lawn Care Company Case Study
1. The Lawn Care Company’s mission is to provide the best grass seed and fertilizer in the market. The company’s corporate strategy is to provide high quality products to its customers. It’s marketing and customer service credo is providing tailored fit products to the right customers at the right time. 2. One example of a good customer benefit package is marketing of a certain product that can be bundled with a complementary service that would improve the customer experience. Another good customer package is providing good after-sales service.
A sale does not end after the payment has been receive. Good after-sales service result to repeat business. 3. The company is much too focused on the quality of the products and the other aspects are taken for granted. The company should diversify to providing application service for high quality grass seeds and fertilizer. This would definitely entice more clients and increase the revenue of the company. 4. The company could offer cultivating service or land analysis service as a pre-service to complete the sale of its products.
The post services that they can offer are the application and maintenance service. This is an attractive package for customers. 5. 1. a The Lawn Care Company’s mission and vision are to provide the best grass seed and fertilizer bundled with complementary land pre-analysis, application service and after-sales maintenance service in the world. The company’s strategy is emphasis on the quality of products, tailor-fitting products to suit the client’s need, providing complementary services to enhance customer experience and excellent post sales customer service.
2. a. The best example of a good benefit package for customers is a combination of a high quality and tailored fit product combined with pre-purchase and post-sales service to promote good customer experience and repeat sales. 3. a The present strategy of the company is great because it caters all the needs of the customer. The company must only maintain and innovate its strategies when the need arises. 4. a The company could diversify to other products to broaden its market and to offer more choices for the customers.