A Case study on Aston Martin Lagonda Global Holdings plc Assignment PDFF

Research Project
Part 2

Table of Contents
PART -2...........................................................................................................................................1
TOPIC .............................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
Overview of the research ...........................................................................................................1
Background of the research.........................................................................................................1
Aim of the research: ...................................................................................................................2
Questions of the research ...........................................................................................................2
Objectives of the research...........................................................................................................2
Rational of the research ..............................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................8
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION ...................................................10
20....................................................................................................................................................13
CHAPTER 5: RESEARCH OUTCOMES ...................................................................................22
CHAPTER 6: REFLECTION & RECOMMENDATION FOR ALTERNATIVE RESEARCH
METHODOLOGY........................................................................................................................24
CHAPTER 7: CONCLUSION .....................................................................................................25
REFERENCES .............................................................................................................................26
APPENDIX ...................................................................................................................................28
PART -1.........................................................................................................................................28

PART -2
TOPIC
“To investigate the benefits and the risks of offshoring and outsourcing on business
operations of an organisation”. A study on Aston Martin Lagonda Global Holdings plc.
CHAPTER 1: INTRODUCTION
Overview of the research
Globalisation refers as an essential process of interaction and integration between
companies, governments and people of various nations. It is the spread of technology, products,
jobs and information across national cultures and borders. In economic way, it determines an
interdependence of countries around the world fostered via free trade. Along with this,
offshoring and outsourcing are considers as main implication of globalisation which will help an
organisation to improve their growth and success. Outsourcing introduces as a business practices
in which an organisation hires another organisation or an individual to do tasks, manage
operations and give services (Alexandrova, 2015).
On the other hand, offshoring introduces as a moving of different operations of business
to another nation for reasons such as lower costs of labor or much more positive conditions of
economic in that other country. For this report, chosen organisation is Aston Martin Lagonda
Global Holdings plc which is a British independent manufacture of grand touers and different
luxury sports cars (Cavusgil, Knight and Riesenberger, 2013). Company decide to expand their
business through offshoring and outsourcing of operations. There are different benefits of
outsourcing and offshoring for given multinational organisation such as better risk management,
increasing in-house efficiency, improve productivity, increase flexibility, reduces cost of
operations etc. All these are main benefits which will help an enterprise to easily globalise their
business operations and activities systematically.
Background of the research
Aston Martin Lagonda Global Holdings plc is a British multinational organisation that
deals in manufacturing of luxury sports cars and grand tourers. Company was founded by Lionel
Martin and Robert Bamford in 1913 and headquartered in Gaydon, Warwickshire, England,
United Kingdom. Company mainly specialise in selling , designing, developing, manufacturing
1

and marketing of luxury sports cars under the lagonda and Aston Martin brands in the UK,
Americas and rest of Europe. Aston Martin Lagonda Global Holdings plc sells its vehicles via a
network of dealers. It was incorporated in 2018 and is located in Gaydon, UK. Therefore, in
order to achieve better growth and success globally, company decide to expand their business
operations through offshoring and outsourcing. It is most essential implication of globalisation
because with the help of this, an organisation can easily invest More in Revenue-Earning
Activities, Increase Efficiency, Cut Labour Costs and so on. All these are identify as an effective
and major benefits which will support an enterprise to growth their business operations
successfully.
Aim of the research:
“To investigate the benefits and the risks of offshoring and outsourcing on business
operations of an organisation”. A study on Aston Martin Lagonda Global Holdings plc.
Questions of the research
 What are the concept of offshoring and outsourcing?
 What are the benefits and the risks of offshoring and outsourcing on business operations
of Aston Martin Lagonda Global Holdings plc?
 What are the different ways through which risks of offshoring and outsourcing can be
overcome by the Aston Martin Lagonda Global Holdings plc?
Objectives of the research
 To study about the concept of offshoring and outsourcing.
 To analysis the benefits and the risks of offshoring and outsourcing on business
operations of Aston Martin Lagonda Global Holdings plc.
 Recommend different ways through which risks of offshoring and outsourcing can be
overcome by the Aston Martin Lagonda Global Holdings plc.
Rational of the research
Main reason behind selecting this topic is to analysis the benefits and the risks of
offshoring and outsourcing on business operations of Aston Martin Lagonda Global Holdings
plc. It is a biggest organisation that help an individual by providing job opportunities to them.
Thus, it will help a country by reducing high rate of unemployment (Ebiringa and Kule, 2014).
Along with this, with the help of this topic or research, researcher can easily enhance their
2

different skills, including data collection, data analysis and literature review. All these type of
skills important for completing each activities of research in more effective and systematic
manner.
3

CHAPTER 2: LITERATURE REVIEW
A literature review is a type of review article. This is a kind of scholarly paper, which
includes a current knowledge, which includes current knowledge as well as previous level of
understanding over the topic or knowledge or information. This contributes to the theoretical and
methodological contribution to any particular topic at a period of time (Ee, Halim and Ramayah,
2013). The main aim of review of literature is to demonstrating an author knowledge or
justification on particular study or level of knowledge. The main purpose of literature review is
to determines over what each sources contributes about topic and to understand relationship
between each contribution. This review of literature will be cover on three different aspect or
questions to have major and critical level of discussion. A critical discussion over this literature
review regarding given topic is as under:
The concept of offshoring and outsourcing
In a current business world, where transferring of good or any kind of technical support
to another has become highly prominent to continue business operation, in that situation two
major concepts such as Off-shoring and outsourcing has in current trends of the discussions.
According to the Jeffrey Glen, (2019), These two concept has become buzzword in the
current business world and faced upsides or down sides in companies business operations. In
many ways, Off-shoring can be comparable to outsourcing, there are certain flow of point of that
can led effective differentiate both. On one hand, outsourcing generally is refers to as obtaining
of an effective products or services from a any selected third party. In layman basis, this simply
means getting most affordable inputs from other in order to continue production. As per views of
Jeffrey, this is most convenient mode of getting raw material and also this have led to saving of
cost and time. On other hand, Off-shoring is refers to obtained any specific products, which can
be inputs or final good transferred from another country. This takes places at international stage,
which highly involves huge cost and time to be incurred in the process of transferring.
As per the point of view of Oshri, Kotlarsky and Willcocks, (2015), When talks over
about impact, outsource is something saving cost and time as resource of business entity, instead
of making of same. Impact of this is positive for building companies at an optimised stage of
working. Off-shoring has positivity over business to get higher level of valuable resource of any
other nations. Along with positive impact, critical impact of these two involves flow of money or
4

funds from companies financial position to other entity, which needs to be overcome or
recovering same as to enhance productivity of the business entities.
In both concept, there is one thing common which is “COST” for benefits of business
entity and also performance at an optimised level. In this, cost saving is higher in both context
and also major priority goes to that. In addition to this, cost is major constituent here for business
entity to start their operation and also continues with support of other business entities.
Author Chris hart also in support of this given knowledge, that this is most convenient
way of procuring materials or resources instead of investing time or cost on its manufacturing,
which is simply burden on cost and financial strength of business firm.
Benefits and the risks of offshoring and outsourcing on business operations
According to John Rippee, (2018), Off-shoring generally takes place when any business
entity moves all its activities to another country with purpose to establish strategic relationship or
business growth at an optimised stage. Outsourcing, in similarity with Off-shoring can enables
outside of the country origins for longer period of time. It is prominent to have major discussion
over benefits and risks of both context to valid conclusion out of given topic. On business level
of operation, Off-shoring is used to create strategic benefits for business entities of other nation
to assist into the long term business process. Whereas, outsourcing means getting raw materials
for suppliers or other business entity to grow higher level of profitability at higher period of time.
These benefits are require to be carry for longer period of time, to led availability of products or
services in a given point of time. Along with benefits, there are some major risk associated with
these two concepts such as diminishing of employment, moving of funds or money, security
issues, lack of manufacturing opportunities for longer period of time.
On the other hand Owens, (2014), In context with Aston Martin, outsourcing involves
getting support of assembly units, parts of the car and other level of mechanism, on other hand,
through support of Off-shoring, Aston Martin uses to obtain engine structure and information
from countries such as Germany, where car technology & up-gradation is superior, in that
situation, it will be beneficial for Aston Martin to generate their profitability at a productive stage
of working.
Benefits of Off-shoring and outsourcing:
 Business growth: Both terms are at some point is similar, as they are majorly deals
with getting resources from other people either at domestic or at an international level.
5

In authors point of view, mainly outsourcing deals with bringing cost efficiency, rapid
use of inputs and existence of products in given point of time.
 Reduced risk: Both Off-shoring and outsourcing are aimed at reduced risk of profit
and acquisition of the cost. These two concepts highly deals with an ease and
responsive role of inputs or services which are mainly required for production process.
In this, saving of cost and time both are majorly survived to procure higher profit for
Aston Martin and in their business operation.
Risk of outsourcing and Off-shoring:
 Breakthrough of communication channels: It is necessary to enhance communication
way before outsourcing or off-shoring of goods or materials from one place to another. If
there will be no effective channels of communication, in that case, this will be threat for
Aston Martin in breaking down long term relationship with supplier or lenders
(Szymczak, 2013).
 Inaccurate time-frame: This will be highly inaccurate, if there will be no effective level
of decision making, which is highly to lack of time-frame or planning for conducting
outsource or off-shore activities from other business entities.
Outsourcing and off-shoring both are majorly similar in context of transforming business
units and performance at a higher level. But, in that major weakness is lack of strategic
relationship. This is reality needs a rapid solution and also measures to enhance strategic
relationship at a profit basis.
Different ways through which risks of offshoring and outsourcing can be overcome by the
Aston Martin
According to the Thompson, Strickland and Gamble, (2015), Outsourcing and Off-
shoring both are majorly linked to each-other, as they are majorly involved in providing products
or services to other business entity with higher intention to save cost and time to be incurred in
self-production of inputs or raw materials which is the costly deals for Aston Martin. If business
entities are used making of inputs by their own, there are various critical issues associated with it
such as breaking of the communication channels, risk of financial and management aspect etc.,
which in reality requires instant solution over the period of time. These risk are in requirement of
rapid solution in order to scope for outsourcing and major level of off-shoring for generating
higher revenue for business entities for sustainability period of time.
6

According to Owens, (2014), risk which are highly associated to outsourcing and Off-
shoring needs to have management and its measurement to take instant solution to all these given
risk over a period of time. In context with the Aston martin, business entity have major solution
to overcoming this risk which are as follows:
Effective planning: Before outsourcing any products or services from any other business
firm or country, this will be prominent to do led effective planning, controlling and organising of
at what level, outsourcing will have to be undertaken and how this will impact functioning of an
organisation at what level of circumstances or issues. In this, risk measurement will have to be
done and steps towards its prevention which will be possible with support of an effective plan.
Managing selection risk: This is highly suitable to have selection of supplier in an initial
stage, so that deliver of raw material will be done in an effective manner, in order to generate
availability of raw materials or inputs to enhance profitability for business entities (Thompson,
Strickland and Gamble, 2015). Also, in this risk are also requires to be calculated in advance or
preparation has been done in context of its solution for longer period of time.
Optimum utilisation of resources: It will be necessary to have resources which can
assist in making rapid outsourcing of an inputs from other business process or any other
preferable nations. Aston Marin needs use their resources such as man, labour, money and other
machines to get outsourcing of the raw materials in an effective and productive way to generate
process.
Financial support: Aston Martin needs to prepare budgeting making, in which funds
level of allocation have been done to bear higher level of expenses in process of outsourcing and
Off-shoring which is highly prominent to establish rapid availability of products or services in
given period of time.
These steps are highly necessary to be undertaken in order to enhance suitable results
over the given period of time (Tate and Bals, 2017). Proper level of planning and controlling is
necessary to establish platform for Aston Martin to attract ease availability of resources or raw
materials in order to gather relevant and suitable outcomes in context of accomplishment of goals
and objectives highly in context of Aston Martin. These given ways are needs to be evaluate with
improvement in planning and direction.
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CHAPTER 3: RESEARCH METHODOLOGY
Research methodology consider as an effective process applied by researcher to collect
accurate and reliable data about the topic (Gerbl and et. al., 2015). For this chapter, research
onion framework introduces as an important model which will support an investigator to identify
reinvent methods for accumulating proper data bout the positive and negative impact of
offshoring and outsourcing on business operations of Aston Martin. This framework has
different layers which are determine as under:
Research philosophy: There are mainly two kind of research philosophy which is
positivism and interpretivisim. In order to evaluate data about the risks and benefits of offshoring
and outsourcing on business operations, interpretivisim philosophy is most suitable because it
will help an investigator in arriving appropriate conclusion (Gunasekaran and et. al., 2015). On
the other side, positivism philosophy is not useful and suitable for researcher while driving valid
conclusion for this study.
Research approach: Inductive and deductive are consider as a two main approach of
research used by researcher to gather data about the challenges and benefits of offshoring and
outsourcing on business operations of an organisation. According to the topic, inductive
approach is more suitable because it give reliable and valid information regarding the topic.
Research strategy: There are different types of research strategies including,
experimental, survey, ethnography, action research, grounded theory, cross-sectional and
longitudinal studies, exploratory, descriptive and explanatory studies (Jensen, Larsen and
Pedersen, 2013). All these are essential, but according to the study, survey questionnaire is more
essential for gathering appropriate information from selected respondents.
Research Choice: There arr basically two types of research which is qualitative and
quantitative. Those type of research are essential for an investigator to accumulate accurate
amount of data about the topic. According to the topic, qualitative type of research is used by
researcher because it give information in form of quality (Khan and Azeem, 2014). On the other
side, there is quantitative research which is not suitable according to this topic because it need
information in form of numbers, facts etc.
Time Horizon: Gantt chart introduces as a best tool for identifying starting and ending
time period for completion of research activities. In this techniques, different activities are
included systematically which are determine as under:
8

Techniques and procedures and research instruments: Questionnaire is consider one of
the main and effective techniques and research instrument of primary research (Luo and et. al.,
2013). With the use of this tool, an investigator is able to gather reliable and valid data about the
given study.
Data sources: For collecting accurate data about the topic, there are basically two types
of data sources which is primary and secondary. Under primary source, questionnaire will be
applied by investigator to gather reliable information about the study (Modarress, Ansari and
Thies, 2016). In case of secondary source, journals, books, magazines, publication research,
literature review will be applied to accumulate in-depth information about the study.
Research sampling: It is mainly classified into two parts such as probability and non-
probability sampling. According to the study, type of non-probability sampling which is
convenience sampling is used to select sample size from total population (Mukherjee, Gaur and
Datta, 2013). Main reason behind selecting this method as it not require maximum time,
resources and cost of organisation. On the other hand, there is probability sampling which is not
suitable for this project because it need more time of company or researcher.
Research ethics: It is important part of research which were used largely to ensure that
the research outputs are included to be accurate and robust. There are some main principles of
research ethics that were applied included informed consent confidentiality and anonymity
(Mykhaylenko and et. al., 2015). All these are useful for researcher to use this and complete each
activities of research in systematic manner.
Research limitation: There are different limitation faced by researcher while collecting
accurate information from the respondents. Formulation of research aims and objectives,
execution of data collection method, sample size, lack of previous studies, scope of discussion
etc. All these are main limitation that highly impact on researcher while doing each activities of
research in accurate manner.
Research reliability and validity: Reliability and validity of research is mainly depends
on questionnaire which is a part of research instrument (Noe and et. al., 2017). It is more
effective and essential which will support an investigator to gather data in form of valid and real.
9

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
Data analysis will be completed with the optimum use of thematic analysis. In this case,
certain themes or patterns will be created which will help an investigator in carrying out research
effectively. The themes will be created on each questions as this will assist the scholar in
analyzing response from selected respondents (Oshri, Kotlarsky and Willcocks, 2015). There is,
60 respondents will be taken which will more effective in analysing accurate response of them
about the risks and benefits of offshoring and outsourcing on business operations of Aston
Martin.
Questionnaire
Q1) Are you have knowledge about the concept of offshoring and outsourcing?
a) Yes
b) No
Q2) Does outsourcing and offshoring is a main implication of globalisation?
a) Yes
b) No
Q3) What are the benefits of offshoring on business operations of Aston Martin Lagonda Global
Holdings plc?
a) Business growth
b) Reduced risk
c) Lower Labour cost
d) Focus on business development
Q4) What are the advantages of offshoring on business operations of Aston Martin Lagonda
Global Holdings plc?
a) Lower labor and operational cost
b) Wider knowledge base
c) New markets
Q5) What are the risks of offshoring on business operations of Aston Martin Lagonda Global
Holdings plc?
a) Breakthrough of communication channels
b) Inaccurate time-frame
10

Q6) What are the challenges of outsourcing on business operations of Aston Martin Lagonda
Global Holdings plc?
a) Possibility of Weak Management
b) Outdated Technology Skills
c) Lack of Organizational Learning
d) Loss of Innovative Capacity
Q7) What are the different ways through which risks of offshoring and outsourcing can be
overcome by the Aston Martin Lagonda Global Holdings plc?
a) Effective planning
b) Managing selection risk
c) Optimum utilisation of resources
d) Financial support
Q8) According to you, offshoring and outsourcing is effective for the growth of Aston Martin
Lagonda Global Holdings plc?
a) Yes
b) No
Q9) What are the aspects that pushes an organisation to be globalised.
a) High advancement of technology
b) Higher profitability
c) Market competitions
Q10) Recommend different ways through which Aston Martin Lagonda Global Holdings plc
can easily improve their business operations at global level.
Q1) Are you have knowledge about the concept of offshoring and
outsourcing?
Frequency
a) Yes 45
b) No 15
Q2) Does outsourcing and offshoring is a main implication of
globalisation?
Frequency
a) Yes 50
11

b) No 10
Q3) What are the benefits of outsourcing on business operations of
Aston Martin Lagonda Global Holdings plc?
Frequency
a) Business growth 20
b) Reduced risk 10
c) Lower Labour cost 12
d) Focus on business development 18
Q4) What are the advantages of offshoring on business operations of
Aston Martin Lagonda Global Holdings plc?
Frequency
a) Lower labor and operational cost 20
b) Wider knowledge base 20
c) New markets 20
Q5) What are the risks of offshoring on business operations of Aston
Martin Lagonda Global Holdings plc?
Frequency
a) Breakthrough of communication channels 35
b) Inaccurate time-frame 25
Q6) What are the challenges of outsourcing on business operations of
Aston Martin Lagonda Global Holdings plc?
Frequency
a) Possibility of Weak Management 10
b) Outdated Technology Skills 15
c) Lack of Organizational Learning 25
d) Loss of Innovative Capacity 10
Q7) What are the different ways through which risks of offshoring
and outsourcing can be overcome by the Aston Martin Lagonda
Frequency
12

Global Holdings plc?
a) Effective planning 20
b) Managing selection risk 10
c) Optimum utilisation of resources 16
d) Financial support 14
Q8) According to you, offshoring and outsourcing is effective for the
growth of Aston Martin Lagonda Global Holdings plc?
Frequency
a) Yes 45
b) No 15
Q9) What are the aspects that pushes an organisation to be
globalised.
Frequency
a) High advancement of technology 15
b) Higher profitability 25
c) Market competitions 20
13

Theme 1: Knowledge about the concept of offshoring and outsourcing
Q1) Are you have knowledge about the concept of offshoring and
outsourcing?
Frequency
a) Yes 45
b) No 15
a) Yes b) No
0
5
10
15
20
25
30
35
40
45
45
15
Frequency
Interpretation: From the above mentioned information, it can be concluded awareness
about the concept of offshoring and outsourcing among respondents. 45 out of 60 respondents
have been aware about this concept whereas remaining 15 respondents not have knowledge
about same concept.
Theme 2: Implication of globalisation
Q2) Does outsourcing and offshoring is a main implication of
globalisation?
Frequency
a) Yes 50
b) No 10
14

a) Yes b) No
0
5
10
15
20
25
30
35
40
45
50
50
10
Frequency
Interpretation: From the above given chart, it has been determined main implication of
globalisation. Along with this, outsourcing and offshoring is a main and effective implication of
globalisation. For this, 50 out of 60 respondents are aware and rest of the population not aware
about the same.
Theme 3: Benefits of outsourcing
Q3) What are the benefits of outsourcing on business operations of
Aston Martin Lagonda Global Holdings plc?
Frequency
a) Business growth 20
b) Reduced risk 10
c) Lower Labour cost 12
d) Focus on business development 18
15

a) Business growth
b) Reduced risk
c) Lower Labour cost
d) Focus on business development
0
2
4
6
8
10
12
14
16
18
20
20
10
12
18
Frequency
Interpretation: From the above given data, it has been concluded different advantages of
outsourcing on business operations of Aston Martin. 20 out of 60 respondents have opinion as it
will help them in business growth and 10 participants have view as it help in reduction of
production risk. Beside this, 12 respondents have opinion as it need lower labour cost and
remaining respondents have opinion as outsourcing mainly focus on business development.
Theme 4: Advantages of offshoring
Q4) What are the advantages of offshoring on business operations of
Aston Martin Lagonda Global Holdings plc?
Frequency
a) Lower labor and operational cost 20
b) Wider knowledge base 20
c) New markets 20
16

a) Lower labor and operational cost
b) Wider knowledge base
c) New markets
0
2
4
6
8
10
12
14
16
18
20
20 20 20
Frequency
Interpretation: As per the above given chart, it has been concluded benefits of offshoring
for Aston Martin to improve their operations successfully at international level. For this
respondents have equal opinion about the advantages of offshoring such as Lower labor and
operational cost, Wider knowledge base and New markets. All of these supported by 20
respondents.
Theme 5: Risks of offshoring
Q5) What are the risks of offshoring on business operations of Aston
Martin Lagonda Global Holdings plc?
Frequency
a) Breakthrough of communication channels 35
b) Inaccurate time-frame 25
17

a) Breakthrough of communication channels
b) Inaccurate time-frame
0
5
10
15
20
25
30
35
35
25
Frequency
Interpretation: It has been interpreted from the above graph that the risks of offshoring
highly impact on business operations of Aston Martin. For this 35 out of 60 respondents have
opinion as it breakthrough of communication channels whereas remaining 25 respondents have
view as inaccurate time-frame is major risk.
Theme 6: Challenges of outsourcing
Q6) What are the challenges of outsourcing on business operations of
Aston Martin Lagonda Global Holdings plc?
Frequency
a) Possibility of Weak Management 10
b) Outdated Technology Skills 15
c) Lack of Organizational Learning 25
d) Loss of Innovative Capacity 10
18

a) Possibility of Weak Management
c) Lack of Organizational Learning
0
5
10
15
20
25
10
15
25
10 Frequency
Interpretation: From the above mentioned information, it has been concluded challenges
of outsourcing on business operation of company. For this, 10 out of 60 respondents have
opinion as there is more possibility of Weak Management and 15 have views as outdated
Technology Skills is major challenge. On the other side, 25 have opinion as Lack of
Organizational Learning is major risk and remaining 10 respondents have opinion as there is
loss of Innovative Capacity which highly impact on business operations of an organisation.
Theme 7: Ways to overcome risks of offshoring and outsourcing
Q7) What are the different ways through which risks of offshoring
and outsourcing can be overcome by the Aston Martin Lagonda
Global Holdings plc?
Frequency
a) Effective planning 20
b) Managing selection risk 10
c) Optimum utilisation of resources 16
d) Financial support 14
19

a) Effective planning
b) Managing selection risk
c) Optimum utilisation of resources
d) Financial support
0
2
4
6
8
10
12
14
16
18
20
20
10
16
14
Frequency
Interpretation: From the above given data or graph, it have been interpreted different
ways for reducing risks of offshoring and outsourcing. 20 out of 60 respondents suggest
company should do effective planning and 10 are have suggestion as an organisation to manage
selection risk. Along with this, 16 respondents have to recommend an organisation to focus on
optimum utilisation of resources and remaining respondents have opinion as financial support is
major ways to overcome risk of offshoring and outsourcing on their operations.
Theme 8: Effectiveness of offshoring and outsourcing
Q8) According to you, offshoring and outsourcing is effective for the
growth of Aston Martin Lagonda Global Holdings plc?
Frequency
a) Yes 45
b) No 15
20

a) Yes b) No
0
5
10
15
20
25
30
35
40
45
45
15
Frequency
Interpretation: From the above give graph, it has been concluded effectiveness of
offshoring and outsourcing on business operations of Aston Martin. 45 out of 60 respondents
have opinion as outsourcing and offshoring for growth of company whereas remaining 15
respondents negative opinion according to the same.
Theme 9: Aspects that pushes an enterprise to be globalised.
Q9) What are the aspects that pushes an organisation to be
globalised.
Frequency
a) High advancement of technology 15
b) Higher profitability 25
c) Market competitions 20
21

a) High advancement of technology
b) Higher profitability
c) Market competitions
0
5
10
15
20
25
15
25
20
Frequency
Interpretation: From the above given graph, it has been concluded different number of
aspects that pushes an organisation to be globalised. In this, 15 out of 60 respondents have
opinion as high advancement of technology is main factor, 25 respondents have view as higher
profitability is major aspects and remaining 20 respondents have opinion as market competition
is biggest aspects for an organisation to be globalised their business operations.
CHAPTER 5: RESEARCH OUTCOMES
The concept of offshoring and outsourcing
Outsourcing and Off-shoring are two interlinked concept, which are heavily aimed to get
easy availability of goods and services from other company or nations, to led effectiveness and
support to production process of Aston Martin (Owens, 2014). To understand this better, this will
be prominent to use planning and concept of management in order to make working into an
organisation. This would also led transferring of goods and services from one business firm to
another or way of off-shoring from other countries to led facilitation for production process of
Aston Martin.
Benefits and the risks of offshoring and outsourcing on business operations
In current period of time, outsourcing has been resulted into an effective way for perfect
and effective arrangements of resources to led production process. This has been undertaken with
22

major purpose to create platform on which outsourcing would led in an effective & productive
manner to build business regulation and also profitability in future period of time (Schniederjans,
Schniederjans and Schniederjans, 2015). Role of demand and deciding of the battle to develop
infrastructure, in response this has attracts attention of suppliers or other business entities into the
process of ease locating of the raw material for production process.
Different ways through which risks of offshoring and outsourcing can be overcome by the
Aston Martin
It was noticed that outsourcing and off-shoring has proved into availability resources or
material for production purpose. Risks such as financial risk, breakdown of the communication
channels has become major issues for Aston Martin to get higher advantage for production of
premium car and auto-mobile (Szymczak, 2013). These risk in reality needs clear evaluation,
creating suitable communication with channel partner to create higher base for shifting of inputs
or any equipment from one business firm to another for production function of Aston Martin.
23

CHAPTER 6: REFLECTION & RECOMMENDATION FOR
ALTERNATIVE RESEARCH METHODOLOGY
Reflection: There are different methods used by researcher to gather accurate and reliable
data about the positive and negative effects of offshoring and outsourcing on business operations.
Primary and secondary are consider main sources of data collection which is used by me to
gather proper information related to the study. Under primary researcher, I am only focused on
questionnaire because it give reliable and valid data about the topic. On the other side, under
secondary research, I am only emphasised on literature review because it help me by providing
in-depth and real information about the study.
Recommendation: From the above mentioned information, it has been recommended
different ways for Aston Martin to overcome challenges of offshoring and outsourcing on their
operations. Some are determine as under:
 Company should follow Decision-Making and Risk Management Process.
 Aston Martin should follows Effective and efficient performance and compliance which
help them controlling and monitoring performance risks. In order to manage risk of outsourcing and offshoring, company should focus on
optimum utilisation of resources.
Alternative methods: Questionnaire must be essential method which will help an
investigator to gather accurate and reliable information about the topic (Tate and Bals, 2017).
Interview is consider as an effective alternative method which will also support a researcher to
accumulate accurate information about the risks and advantages of outsourcing and offshoring on
business operations of company. Both are essential, but according to the topic, questionnaire is
most useful method because it give accurate data as compare to interview.
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CHAPTER 7: CONCLUSION
From the above mentioned, it has been concluded that the offshoring and outsourcing are
different concept that help an organisation in expansion of its operations at global level.
Outsourcing and offshoring must have risks and benefits which highly impacted on business
operations of an organisation. As per the above data in questionnaire, more than half of the
population are aware about the concept of outsourcing and off-shoring and its positive and
negative upon business operations.
25

REFERENCES
Books and Journals
Alexandrova, M., 2015. Risk factors in IT outsourcing partnerships: Vendors’
perspective. Global Business Review. 16(5). pp.747-759.
Cavusgil, S. T., Knight, G. A. and Riesenberger, J. R., 2013. A framework for international
business. Prentice Hall.
Ebiringa, O. T. and Kule, L., 2014. Offshoring for sustainable value management. Serbian
Journal of Management. 9(1). pp.105-119.
Ee, O., Halim, H. A. and Ramayah, T., 2013. The effects of partnership quality on business
process outsourcing success in Malaysia: key users perspective. Service Business. 7(2).
pp.227-253.
Gerbl, M. and et. al., 2015. A multi-theory approach to understanding the business process
outsourcing decision. Journal of World Business. 50(3). pp.505-518.
Gunasekaran, A. and et. al., 2015. Performance measures and metrics in outsourcing decisions:
A review for research and applications. International Journal of Production
Economics. 161. pp.153-166.
Jensen, P. D. Ø., Larsen, M. M. and Pedersen, T., 2013. The organizational design of offshoring:
Taking stock and moving forward. Journal of International Management. 19(4).
pp.315-323.
Khan, S. U. and Azeem, M. I., 2014. Intercultural challenges in offshore software development
outsourcing relationships: an exploratory study using a systematic literature review. IET
software. 8(4). pp.161-173.
Luo, Y. and et. al., 2013. Governing business process offshoring: Properties, processes, and
preferred modes. Journal of World Business. 48(3). pp.407-419.
Modarress, B., Ansari, A. and Thies, E., 2016. Outsourcing in the Persian Gulf petroleum supply
chain. Strategic Outsourcing: An International Journal. 9(1). pp.2-21.
Mukherjee, D., Gaur, A. S. and Datta, A., 2013. Creating value through offshore outsourcing: An
integrative framework. Journal of International Management. 19(4). pp.377-389.
Mykhaylenko, A. and et. al., 2015. Accessing offshoring advantages: what and how to
offshore. Strategic Outsourcing: An International Journal. 8(2/3). pp.262-283.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Oshri, I., Kotlarsky, J. and Willcocks, L. P., 2015. The Handbook of Global Outsourcing and
Offshoring 3rd Edition. Springer.
Owens, A. R., 2014. Exploring the benefits of contact centre offshoring: a study of trends and
practices for the Australian business sector. The International Journal of Human
Resource Management. 25(4). pp.571-587.
Schniederjans, M. J., Schniederjans, A. M. and Schniederjans, D. G., 2015. Outsourcing and
insourcing in an international context. Routledge.
Szymczak, M. ed., 2013. Managing towards supply chain maturity: Business process
outsourcing and offshoring. Springer.
Tate, W. L. and Bals, L., 2017. Outsourcing/offshoring insights: going beyond reshoring to
rightshoring. International Journal of Physical Distribution & Logistics
Management. 47(2/3). pp.106-113.
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Thompson, A., Strickland, A. J. and Gamble, J., 2015. Crafting and executing strategy:
Concepts and readings. McGraw-Hill Education.
Online
Jeffrey Glen, 2019. Offshoring vs. Outsourcing. [Online]. Available through:
<http://www.businessdictionary.com/article/1090/offshoring-vs-outsourcing-d1412/>
John Rippee, 2018. Offshoring vs Outsourcing. [Online]. Available through:
<https://www.tecma.com/offshoring-vs-outsourcing/>
27

APPENDIX
PART -1
Research Proposal Form
Student Name: ______________________ Student ID:
____________
Centre Name: _____________________
Tutor: ________________ Date:
___________________
Unit: ____________________
Proposed Title: “To investigate the benefits and the risks of
offshoring and outsourcing on business operations of an
organisation”. A study on Aston Martin Lagonda Global Holdings plc.
______________________________________________
28

Section One: Title, objective, responsibilities
Title or working title of the research project
Title: “To investigate the benefits and the risks of offshoring and outsourcing on business
operations of an organisation”. A study on Aston Martin Lagonda Global Holdings plc.
Research Question:
Q1. What are the benefits and the risks of offshoring and outsourcing on business operations of
Aston Martin Lagonda Global Holdings plc?
Research objectives:
 To study about the concept of offshoring and outsourcing.
 To analysis the benefits and the risks of offshoring and outsourcing on business
operations of Aston Martin Lagonda Global Holdings plc.
 Recommend different ways through which risks of offshoring and outsourcing can be
overcome by the Aston Martin Lagonda Global Holdings plc.
Section Two: Reasons for choosing this research project
Main reason behind selecting this topic or research is to identify the impact of offshoring
and outsourcing on business operation of Aston Martin Lagonda Global Holdings plc. It is a
British multibational and independent manufacture of luxury sports cars and grand tourers.
Main resaon about chossing this organisation as it will help an individual by providing job
opportunities and enhnacing living standerd of people within a country. This topic or research
will also support an investigator to improve their literature review, data analysis and data
collection skills. Thus, this research is more essential for researcher and community of country
where company globlaise their business operations.
Section Three: Literature sources searched
Literature review refers as a type of scholarly paper which is used by an
investigator to address all objectives and questions of research and
identify gaps in previous studies.
Concept of offshoring and outsourcing.
According to the Nicholas Hargreaves, (2018), Outsourcing introduces
to obtaining certain products or services from an external organisation or
third party. Due to this, location of the contracting organisation is not
essential- outsourcing can be completed between various organisation
29

located anywhere. Offshoring introduces to obtaining products or services
strictly from organisation based in another nation.
Benefits and the risks of offshoring and outsourcing on business
operations of Aston Martin Lagonda Global Holdings plc.
According to the Nash Riggins. 2017. there are different advantges and
risks of outsourcing which impact on business operations of Aston Martin
Lagonda Global Holdings plc. With the help of outsourcing, company cam easily increse
efficiency, control cost and also accomplish competative benefits easily. All these are majore
benefits of outsourcing which will help an organisation to enhnace their sucess and growth at
international level. Service delivery, confidentiality and security, management difficulties,
instability, lack of flexibility etc. are consider as a major risks of outsourcing that highly
influence of business operations of multinational company.
According to the Deborah Schell, 2017, There are many advantges to offshoring for an
organisation such as cost saving and chances to get skills or equipments. On the other hand,
there are different number of risks of offshoring that directly impact on business operations of
car manufacturer. Communication issues, cultural and social barriers, time zone difference,
security, higher offshore cost, loss of intellectual property are considr as a biggest risks which
will impact on business operations of company internationally.
Therefore, there are common risks of outsourcing and offshoring such as Competitor risk,
performance risk, risk of delay, financial viability risk, political and reputation risk, security
and confidentatility risk, transition risk. All these are major risk that impact on business
operations of an organisation.
Different ways through which risks of offshoring and outsourcing can be
overcome by the Aston Martin Lagonda Global Holdings plc.
According to the Sidney Liquigan, 2017, there are different ways for managing above
discussed all risks systematically. Some are suggested to an organisation such as: Identify their
goals and set checkpoints, Set KPIs, Shared responsibility, management of project risk,
managing provider selection risk, handling negotiation and contracting risk, managing start-up
and transition risk etc. All these are essential and effective ways which will support an
organisation to manage all risks in systematic manner.
30

Articles
Nicholas Hargreaves. 2018. Concept of outsourcing and offshoring.
[Online]. Available through:<https://www.quora.com/What-is-the-difference-between-
outsourcing-and-offshoring>.
Nash Riggins. 2017. Advantages and Disadvantages of Outsourcing.
[Online]. Available through:<https://smallbiztrends.com/2017/02/advantages-and-
disadvantages-of-outsourcing.html>.
Deborah Schell. 2017. Advantages and risks of offshoring. [Online].
Available through:<https://study.com/academy/lesson/what-is-offshoring-definition-
advantages-disadvantages.html>.
Sidney Liquigan. 2017. Tips to Reduce Outsourcing and Offshoring Risks.
[Online]. Available through:<https://www.microsourcing.com/blog/tips-to-reduce-
outsourcing-risks.asp>.
Managing Outsourcing and Offshoring Risk. 2019. [Online]. Available
through:<https://www.protiviti.com/IN-en/insights/managing-outsourcing-and-offshoring-
risk>.
Section Four: Activities and timescales
Activities to be carried out during the research
project :
Identification of the problem
Selection of suitable topic
Creation of aims and objectives
Literature Review
Research Methodology
Data collection
Data analysis
Conclusion and recommendation
Submission of final project
3
2
2
6
9
15
12
4
1
Milestone one: ____Research Proposal ____________
31

Target date (set by tutor): ____22 days ________________
Milestone two: ___Research Project ____________________
Target date (set by tutor): __32 days ____________________
Gantt Chart: A Gantt chart refers as a horizontal bar chart that develop
as a production control technique by Henry L. Gantt in 1917. It is a most
useful bar chart which will help an investigator to analysis starting and
ending time duration for completing each activities of research in
systematic manner.
32

Section Four: Research approach and methodologies
Research onion framework
It refers as an effective framework used by researcher for explaining the research methodology.
In this framework different inner and outer layer included which will help an investigator to
identify best research approach and methods for gathering accurate information about the topic.
Research Approach: It may be classified into two parts such as approach to data analysis and
approach to data collection. In order to collect information about the topic, research approach is
divided into two sections which is qualitative and quantitative. On the other hand, for analysing
information or data related to the study, inductive and deductive are consider as a best research
approach to analysis data. Therefore, in order to collect and analysis impact of offshoring and
outsourcing on business operations of multinational organisation, qualitative and inductive
approach will be applied. As it will help an investigator by giving them in-depth and reliable
33

data about the study.
Research Philosophy: It is another layer of research onion framework which is classified into
two parts which is positivism and interpretivisim. According to the study, interpretivisim
philosophy will be applied by researcher because it will support them in evaluating information
effectively. On the other side, positivism philosophy is not appropriate for this research project
because it not give information in effective manner.
Primary and secondary data collection: There are two types of data collection source which is
primary and secondary. Both are important source for investigator to gather accurate and
proper information about the topic. In case of primary data collection, questionnaire is consider
most essential source which will support an investigator by providing reliable and valid data
about the study. On the other hand, for collecting secondary data, books, review of literature,
journals, magazines, publication research and many other relevant articles will be used by
investigator. Thus, both type of data collection source will be applied for identifying impact of
offshoring and outsourcing on business operations of company.
Comments and agreement from tutor
Comments (optional):
I confirm that the project is not work which has been or will be
submitted for another qualification and is appropriate.
Agreed: ________________ (name)_______________ Date ______________
Comments and agreement form project proposal checker( IV
sampling)
Comments (Optional):
I confirm that the project is appropriate.
Agreed /Disagree: (Name of the IV)
Date
34

Research Ethics approval form
All students conducting research activity that involves human participants
or the use of data collected form human participants are required to gain
ethical approval before commencing their research. Please answer all
relevant questions and note that your form may be returned if incomplete.
For further support and guidance please see your respective Unit Tutor:
Before completing this form, we advise that you discuss your proposed
research fully with your unit tutor. Please complete this form in good time
before your research project is due to commence.
Section 1: Basic details:
Project title:
“To investigate the benefits and the risks of offshoring and outsourcing on business operations
of an organisation”. A study on Aston Martin Lagonda Global Holdings plc.
Student name:
Student ID number:
Programme:
College Name:
Intended research start date:
Intended research end date:
Section 2 Project summary
Please select all research methods that you plan to use as a part of your
project:
 Interviews Yes No
 Questionnaires Yes No
 Observations Yes No
 Use of personal records Yes No
 Data Analysis Yes No
 Action Research Yes No
 Focus Groups Yes No
 Others (Please specify) :
Section 3: Participants
35

Please answer the following questions, giving full details where necessary.
Will your research involve human participants?
Who are the participants? Tick all that apply:
Ages 12-16: Young people aged: 17-18 Adults
How will participants be recruited (identified an approached)?
There are two types of sampling methods which is probability and non-
probability. Both sampling are essential but in order to recruit participants
for this research project, probability sampling in research will be used by
researcher. It will help in avoiding selection bias, enables generations
from the sample to the wider population etc. Therefore with the help of
probability sampling, 40 respondents will be taken into consideration.
Describe the processes you will use to inform participants about what you
are doing:
With the support of various platforms, including, social media, mobile application, website etc.
investigator will inform selected 40 participants about what they are doing.
How will you obtain consent from participants? Will this be written? How
will it be made clear to participants that they may withdraw consent to
participate at any time?
Questionnaire is consider one of the best and written form which is used by researcher to obtain
consent from selected participants.
Studies involving questionnaires: will participants be given the option of
omitting questions that do not wish to answer?
Yes No
If no please explain why below and ensure that you cover any ethical
issues arising from this
Studies involving observation: Confirm whether participants will be
36

asked for their informed consent to be observed.
Yes No
Will you debrief participants at the end of their participation (i.e give them
a brief explanation of the study)?
Yes No
Will participants be given information about the findings of your study?
(This could be a brief summary of your findings in general)
Yes No
Section 4: Data Storage and Security
Confirm that all personal data will be stored and processed in compliance
with the Data Protection Act (1998)
Yes No
Who will have access to the data and personal information?
Researcher
During the research:
Researcher
Where will the data be stored?
Computer systems are used to store data.
Will mobile devices such as USB storage and laptops be used
Yes No
If Yes, please provide further details:
37

After the research:
Where will the data be stored?
How long will the data and records be kept for and in what format?
Will data be kept for use by other researchers? Yes No
Section 5 : Ethical Issues
Are there any particular features of your proposed work, which may raise
ethical concerns? If so, please outline how you will deal with these:
It is important that you demonstrate your awareness of potential risks that
may arise because of your research. Please consider/address all issues
that may apply. Ethical concerns may include, but are not limited to the
following :
 Informed consent.
 Potentially vulnerable participants.
 Sensitive topics
 Risk to participants and /or researchers
 Confidentiality/anonymity
 Disclosures/ limits to confidentiality
 Data storage and security, both during and after the research
(including transfer, sharing, encryption, protection).
 Reporting
 Dissemination and use of your findings.
Section 6: Declaration
I have read, understood and will abide by the institution’s Research
and Ethics Policy: Yes No
I have discussed the ethical issues relating to my research with my
Unit Tutor:
Yes No
I confirm that to the best of my knowledge:
The above information is correct, and this is a full description of
the ethical issues that may arise in the course of my research
Name: Date:
38

Please submit your completed form to your supervisor and also
attach to the Research Proposal when submitting to Turnitin.
39