Assignment 1: Discussion—Outsourcing: A Strategic Advantage?
Outsourcing may provide tremendous advantages for firms. It may allow companies to specialize, reduce costs, and focus narrowly on the core competencies they deem strategic; however, companies also have to think about what they may lose both qualitatively and quantitatively. For example, when outsourcing, managers need to be certain that what they source from outside is not a key component of their value proposition.
A way to reduce those risks is to use an approach called vertical integration. The meaning of vertical integration is developing the ability to produce goods or services previously purchased or to actually buy a supplier or a distributor. It can take two forms: backward and forward. These forms relate to how the corporation moves in its supply chain to pursue the vertical integration. If the movement is towards the suppliers, it is called backward integration. Conversely, it is known as forward integration.
Using the module readings, University online library resources, and the Internet, research outsourcing. Based on your research, respond to the following:
Whenever possible, provide, examples of Fortune 500 companies to illustrate your points. Write your initial response in 2 pages. Apply APA standards to citation of sources.
Assignment 2: Outsourcing Federal Healthcare
Early in their existence, many businesses handle their activities internally. As businesses mature and grow, they often find competitive advantage in the specialization provided by outside firms. This trend is particularly frequent in industries such as information technology (IT) and healthcare.
The U.S. federal government delivers healthcare through its two main insurance programs: Medicare and Medicaid. In these programs, private healthcare providers are reimbursed by government insurers for health services delivered to insured citizens.
Based on your analysis of the article and the Web sites, address the following:
Write a 3 page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M2_A2.doc.
Harland, C., Knight, L., Lamming, R., & Walker, H. (2005). Outsourcing: Assessing the risks and benefits for organizations, sectors, and nations. International Journal of Operations & Production Management , 25 (9/10), 831–850. (ProQuest Document ID: 232337858)
Assignment 2 Grading Criteria
Identified the main stakeholders in the US federal healthcare system and described their respective goals, wants, and needs with regard to the public healthcare system according to a personal evaluation.
Analyzed the current status of the healthcare provided by the US government and proposed a new relevant policy to be implemented for optimizing the use of outsourcing in healthcare services to private hospitals and healthcare practices in order to provide medical services to the bulk of the US population.
In using the policy proposed, described the benefits for at least one stakeholder group identified in the first question.
Explained the likely outcomes of the outsourcing policy recommended, including the impact on different stakeholder groups as well as possible tradeoffs in implementing it.
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