The paper "Analysis of the Article by Booi Hon Kam, Ling Chen, and Richard Wilding " is a good example of a business article. The article by Booi Hon Kam, Ling Chen, & Richard Wilding (2011), looks at outsourcing in the Chinese Apparel industry using case studies of two apparel retailers operating under different market environments. Outsourcing is an arrangement made between a firm and supplier. The agreement dictates what the supplier is supposed to deliver based on agreement. The delivered goods and services are what the firm can produce internally, but outsourced so that the firm can concentrate on its core competencies (Dominguez, 2006).
Despite the expected advantages, not all firms are able to gain from the partnership. Risk management forms a vital part of outsourcing. Firms choose different outsourcing strategies based on their circumstances. Primary motivations of the research and argument put forward in the study The article primary motivations arise from the interest to determine the strategies that are used by the Apparel retailers in China to manage their outsourcing risks faced by the market demands and specific products’ requirements. The authors have a motive to establish whether the retailers come up with specific types of processes in managing the risks.
The authors are also driven by the urge to determine whether the operational processes used to manage risks are in any way linked to the concept of value protection. The research is also motivated to know the role played by Guanxi which is a traditional type of relationship management in China on outsourcing (Booi Hon Kam, Ling Chen & Richard, 2011). The author puts several arguments in their research.
The author asserts that failure to manage the outsourcing risks appropriately can lead to huge losses despite the process being associated with profits. The main argument put forward is that the current literature in outsourcing has mostly looked at the range of outsourcing strategies only. According to the article, the current literature has not addressed fully the circumstances under which a certain outsourcing strategy would be appropriate for a firm. The authors also argue that there is no enough literature on outsourcing risks that Chinese companies faces. Most of the literature has abandoned the Chinese firms’ model of outsourcing.
Lastly, the authors argue that the current outsourcing literature is one-sided. This is due to fact that it looks at the outsourcing strategies in the perspective of achieving success, but does not look on how to prevent the failures (Booi Hon Kam, Ling Chen & Richard, 2011). To support their arguments, the authors use literature from other writers. To support their claims, the authors begin by giving insight into the issue of outsourcing risk management. According to the outsourcing agreement, the supplier is expected to provide goods and services which otherwise would have been produced by the firm.
The main aim of outsourcing is to gain the advantage of the supplier capabilities. Despite this, the process of outsourcing is risky and requires caution and well-defined partnership (Duening & Click, 2005). To substantiate the claims, the authors look at the case studies on CL China and TY Apparel. Both companies have adopted different approaches to managing their risks. The authors prove that each mode of risk management that the companies used is related to what they perceive to be their threat.
For CL China, quality is of paramount importance in their operation while for TY Apparel, the speed of goods to market matters (Booi Hon Kam, Ling Chen & Richard, 2011). This makes the firms to use different risk management strategies in their partnership.