Module 3

            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.