With the world becoming flatter and flatter we might
begin to wonder is there a strategy to run a profitable business more
effective? In the reading this week we learn about offshoring and how it can
profit the company. We also learned about supply chaining and how Walmart
become one of the largest companies because of its ability to restock and be organized
in a timely manner. Lastly we learn about Google, and how they learned to
become a successful business by having other companies pay them to advertise on
their search engine and watching what we look at and show us advertisements
based on our interests.
Outsourcing
is paying other companions outside of the country to do some of your work for a
cheaper price then you could do it in your country. Offshoring is taking part
of your company to another to country for cheaper labor, or for better resources.
The difference I think mainly outsourcing you are hiring outside company help.
Offshoring you are moving or creating a work place on another country to take
advantage of the cheaper resources, while keeping the work still in company. I would
think the difference is if you have the money up front to build off shore then
why contract it out to other companies when you can build a new building have taken
advantage of the more efficient resource whatever it may be. On the other hand
if you are not a huge company and don’t have the financial standing or desire
for more offices then why not contract it out and share your business with
other companies for a mutual gain.
With offshoring, you have to make sure you can transport all
your goods in a timely manner. This is called a supply chain. Walmart has
become one the best at utilizing a supply chain, helping them to become one of
the biggest companies. Walmart is able to know what you buy at the store and as
soon as you buy it orders the exact thing you just bought to replace it. They
are also able to see what stores or selling what best based on location so they
can manage stock to the best of their control and control sending to many of an
item that people won’t buy in that location. So they can run one of the largest
franchises in the world, with minimal loss from overstocking and replenish
supplies as fast as needed. Since Walmart is one of the biggest companies it
can demand more from suppliers. Walmart doesn’t anything so they have to insure
that they get the very best deals they can. With the amount of goods they buy
they have the ability to demand a better price or threaten to take their business
elsewhere.
Google came along and gave every person with a computer
and access to the internet the ability to search for anything online that they
could think of. As Google grew larger they realized that they could track what
you searching and provided advertisements on the things that you searched,
making it very easy to find things that you were interested in buying. This
made it so that Google could actually become a profitable business without
pushing merchandise at every person. People would search things on Google and
then an advertisement would come up that would interest them and they would
sell themselves the products while Google charging the companies to advertise
made a profit. Google gave everyone the
power to inform themselves whether it was on entertainment or stores.
With the world being flatter and flatter we have learned different
ways business have thrived in this flat world. First is by offshoring to make
products at a fraction of the cost. Second, having a supply chain so that
products can be restocked in an orderly fashion and maintain it without having
to turn away customers. The last way is by taking advantage of the technology
in the world today and being able to advertise on online sites such as Google
and Yahoo. This requiring no work on the part of the company just simply
putting an advertisement up and waiting for the people to sell themselves.