Outsourcing

Overview

Imagine that you are a senior business manager for the U.S.-based MNC from your week 4 assignment. Your management team has accepted your recommendation to outsource and offshore the IT department to the country that you have previously recommended. Your management team now needs you to formulate an entry and implementation strategy in order to ensure the outsourcing strategy is executed effectively. Use the Internet or Strayer Library to research the culture of and basic strategies for global integration into the selected country.

Instructions

Write a 4–6 page paper in which you:

1. Describe the current culture of the outsourcing country. Illustrate your company’s ability to manage both multiculturalism and diversity in order to build multicultural team effectiveness.

2. Analyze each of the four basic strategies for global integration in terms of international strategy, multi-domestic strategy, global strategy, and transnational strategy. Suggest the strategy that would be most fitting for your new venture. Justify your response. Note: Refer to Figure 8-1, Global Integration vs. National Responsiveness.

3. Prepare an environmental scanning analysis, and provide the management team with an accurate forecast related to different environmental factors that could affect the company within its proposed new operating location. Consider the local operating environment and the Ease of Doing Business Rankings.

4. Based on the environmental analysis, recommend both an ownership structure and organizational structure for operating the MNC within the new market. Defend your recommendation.

5. Compose a political risk analysis that details both macro and micro risks and indigenization laws for the new country. Provide specific examples of said risks.

6. Design an implementation strategy that considers the essential alliance partners. Based on the environmental and political risk analyses, determine the most significant challenges and opportunities to forming mutually beneficial relationships with the identified alliance partners. Justify your response.

7. Consider entry into the emerging market. Next, contrast the strategies that will have to change to suit the emerging market versus the U.S. MNC strategies. Provide support for your response.

8. Use at least three quality references. Note: Wikipedia and other Websites do not qualify as academic resources.

The specific course learning outcome associated with this assignment is:

Design an entry and implementation plan that ensures an MNC’s new outsourcing strategy is executed effectively.