The paper "Analysis of the Article by Booi Hon Kam, Ling Chen, and Richar Wilding " is an outstanding example of a business article. The motive for this research is to look at the way in which the Chinese apparel retailers operating in different market environments manage their production outsourcing risks. The article also is motivated by the urge to know why different firms choose to manage their outsourcing risks in a particular way. Most of the business organizations have resulted in outsourcing due to strategic as well as economic benefits that have been associated with it.
This is due to the fact that if the outsourcing program works, the business is able to reduce costs, increase their flexibility, increasing level of expertise and discipline. Despite the advantages that are associated with outsourcing, there are risks that occur. The authors of the article look at the outsourcing risks in the Chinese apparel industry from the point of minimizing the failure of outsourcing other than gaining the success of the outsourcing (Booi, Ling & Richard, 2011). The authors’ main argument is that the available literature has failed to look at the best outsourcing strategy for a firm depending on its circumstances.
There is also an argument that there is no research that has been done regarding the outsourcing strategies that are used in China. Most of the literature on outsourcing has been directed towards the strategies with a view of gaining outsourcing success rather than preventing its failure. The argument is supported using the literature from several articles (Booi, Ling & Richard, 2011). To support their points of arguments, the authors start by explaining how to manage the outsourcing risks.
According to the article, outsourcing is the arrangement between the firms with an external supplier. The external supplier under the contract is expected to provide to the firm goods and services which the firm would have otherwise produced internally. The firms outsource in order to increase their productivity and performance. This is by leveraging the capabilities of the supplier.
Booi, H. K., Ling Chen, & Richard, W. 2011, ‘Managing production outsourcing risks in China's apparel industry: a case study of two apparel retailers’, Supply Chain Management: An International Journal, Vol.16, no. 2, p. 428-445.
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