Strategic Management and Performance Evaluation

This assignment explores the key concepts of strategic management, including Porter's Five Forces analysis and theme identification. It delves into the Balanced Scorecard framework as a tool for performance evaluation, outlining its components and implementation process. Furthermore, the assignment discusses the importance of supplier quality assessment and sustainability in organizational strategy, providing insights from relevant studies and real-world examples.

Construction of a Framework for Selection of Sustainable
Outsourcing Supplier

Table of Contents
Chapter 1 Introduction.....................................................................................................................1
1.1 Project background...........................................................................................................1
Significance of Study.............................................................................................................4
Chapter 2- literature review.............................................................................................................5
2.1 Introduction......................................................................................................................5
2.2 Balance Score card - The drawback ..............................................................................11
2.7 Analytic Hierarchy Process............................................................................................16
2.8 Application of Analytic hierarchy process.....................................................................17
2.9 Sustainability of outsource partner ................................................................................20
Chapter 3 - Design methodology ..................................................................................................26
3.1 Design mythology..........................................................................................................26
3.2 Phase 1 – Identify Building............................................................................................27
3.3 Phase 2 – Strategic Analysis...........................................................................................28
d. i.........................................................................................................................................30
e) Phase 5a- Implementation and measurement...................................................................36
Phase 5b................................................................................................................................38
3.1 Supplier Coding Process.................................................................................................40
Chapter Four – Application Case Study........................................................................................49
4.1 Case background............................................................................................................49
4.1.2......................................................................................................................................53
3. Strategic definition...........................................................................................................66
4. Implementation.................................................................................................................67
CHAPTER 5 : Results and discussion...........................................................................................80
5.1 Measure Company_S performance using balance scorecard.........................................80
CHAPTER 6: CONCLUSION......................................................................................................96
6.1 Overall project done.......................................................................................................96

6.2 Achievement of the project............................................................................................96
6.3 Limitation.......................................................................................................................97
6.4 Recommendation in the future.......................................................................................97

Illustration Index
Illustration 1: Theme 1...................................................................................................................55
Illustration 2: Theme 2...................................................................................................................56
Illustration 3: Theme 3...................................................................................................................57
Illustration 4: Theme 4...................................................................................................................58
Illustration 5: Theme 5...................................................................................................................59
Illustration 6: Theme 6...................................................................................................................60
Illustration 7: Strategy Evaluation.................................................................................................68
Illustration 8: Balance Scorecard Process......................................................................................71
Illustration 9: Supply quality score................................................................................................76
Illustration 10: Sustainability.........................................................................................................78

Chapter 1 Introduction
1.1 Project background
Under the evolution of paradigm of globalization over the years, Outsourcing is defined
as the operation of shifting from internal governance to external under a long-term contract,
frequently involving the transfer of staff to vendor (Barthélemy, 2003; Quélin & Duhamel, 2003)
Outsourcing supply chain become another strategies for gaining the higher competitive
advantage than domestic (on-shore) manufacturing. China value proposition is more complex
and mature on supply chains, sophisticated upstream processes, well developed infrastructure,
and a wide range of electronics suppliers offering various specifications, technical competencies
of knowhow and capacity. As of 2013, global EMS (electronic Manufacturing Services) industry
is around $440 million business, producing over half of the world’s electronic products. There
are over 40 countries providing EMS service, and China is one of the biggest market shares.
China occupies about 53% of the global production value of the EMS industry in 2012. (Keith,
2013)
According to Hao, outsourcing manufacturing bring out several benefit compared to in-
house manufacturing, they are 1. Reduce the developing schedule 30% - 50%, 2. reduce to the
development cost, 3. change or improve to the quality of product and production, Outsourcing
vendor provides a more reliable parts and component, avoid any change in the future. 4. More
competitive edge if outsource vendor is more mature and reliable than competitors. 5. Increase to
the effectiveness of technology research (Hao 2013).
Wendin suggested that are two major trends are affecting the electronic manufacturing
industry. One is the pricing pressure up growing continuously so to make the electronic-based
product become more standards-base. This results product company outsources additional
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functions to reduce to the cost for more margins in the pricing competition. Secondly, Merging
to China and Asia countries is necessary to survive on cost control, low cost manufacturing
locations and also it labor cost, technical and engineering supports to the low cost of pricing.
Moreover, potential new market opportunities has shift to China and Asian domestic electronics
market. And thus the outsourcing manufacturing in China and Asia area is still under a need on
pricing competition factor. (Wendin, 2005)
Theoretically, the more vendors on the list keeps in the vendor database helps to
Company for more selection during new order item enquiry received.
However, in actual situation, due to the resource of the Company on outsource vendors’
management, the size of active vendor running to the project that should be optimized and
minimize to Company’s effort. Therefore, right selection to the vendor or finding a suitable
vendor is critical for Company’s project development.
For a new supplier, each time the Company has to overcome to a running in period to
suppliers to under both side’s vision, requirement and culture to another party. A closed vision
and consensus suppliers working on the supply chain, which result to results including shorten of
the product develop lead time, reduction of cost and also improve to competitive advantage. [14]
From the point of view in supplier relationship, it is very costly and longer time has to
pay into running in period. Time to market is very important condition to succeed against
competitors. It has to be a collaborative partnership to outsourcing suppliers and both of each
side could understand each other. The less of period on spending on learning from the supplier,
the more effective time on the running the project, and consequently more accurate to the time
line - Once the project confirmed, the time-line has set, if the vendor should be completed to the
order before the timeline. If the vendor is not the right suitable to Company’s standard and
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requirement, the project will be affect in terms of quality and time management. Project launch
time should be right to the market, once the project completion schedule is delay, the go to the
market schedule will be delay. Especially in consumer electronic product, the delay of time to
the market will dramatically decrease the competitive ability.
To conclude, the company should optimize this vendor list for lease effort of vendor
management. However, at the same time the active vendors keep to Company side should be
provide capable to provide with required quality and standard. Therefore, sourcing with a
suitable vendor for partnership is critical to make the merchandizing business successful.
Therefore, a long term relationship to a supplier would be very important on the supply
chain management. However, below discussion is the consequential problem statements of issues
on holding the relationship on the outsource suppliers. High wages labour cost in China The
rapid economic growth and the new revolution of central government policies resulted to the
rising of operation cost and increase in wages. Particularly, the inflation of Pearl River Delta
and Shanghai is much more obvious than interior Chinese regions and also the neighbouring
countries in Southeast Asia. And this come with buying office and turnkey office move out into
inland China, or some of them be shift to near-shore or on-shore production.
Source: http://www.industryweek.com/supply-chain/five-emerging-trends-impacting-asian-
manufacturing
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Significance of Study
There are thousands of factory providing outsourcing services in China. low cost
facilities and labour and also high technical support company, the Company manager has to
select right supplier catered to the Company’s project difficulties and Company operation policy.
Thus, a systematic analytic tool and framework for evaluation is highly necessary for the
standardization to evolution and selection of supplier.
The Outsourcing activity in China
About two-thirds of China’s electronic manufacturing revenues comes solely from
foreign-funded or Sino-foreign joint ventures. The world’s top ten electronics manufacturers
have all invested in China and consider China to be a key region in the global manufacturing
revenues in 2005.
Figure xxx shows to the ranking of outsourcing countries. Though under the increasing of
operation cost, China has the largest labour population over the world. Besides, China has
developed to both manufacturing and retailer’s opportunities in the same place, in which keeps
China to the key player in the global outsourcing industry.
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Chapter 2- literature review
2.1 Introduction
As discussed on Chapter 1, Outsourcing activities which involves the transfer of non-core
activities to other supplier which have their own specialized expertise and provide a lower cost
service, as such gaining to the Company’s higher competitive advantage.
SSCM is defined as the management of a material/product and information flows across
supply chain participants, taking into account the economic, environmental and social impacts.
The three dimensions of sustainability are known as the triple bottom line Importance of
measurement in sustainable supply chain. [9]
A well-managed Company can be the result of reduced of overall cost, increase the
competitive aspect market share and revenue and the sustainability of customer’s relationship. A
sustainably competitive advantage with outsource supplier relationship is the final goal the
Company. However, the decision making on the selection of a suitable supplier is very
complicated, the performance evaluation involves many factors and those matters are often case
by case to different project or product.
It could be assessed that within the global marketplace demands that supply chains could
differ. However, their broad distribution could be assessed as it helps in carrying out effective
significance so that functionality of manufacturing and supply chain system could be carried out.
Thus, identifying the different outsourcing suppliers so that quality products could be obtained.
Such revolution within supply chain could not be diminished and thus it is essential for business
to adopt effective results so that corporate citizenship could be obtained (Christopher, 2016). It
could also assess that supply chain could not be differentiated from corporate social
responsibility and thus carry out effective concern regarding environment, health and safety.
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However, the evaluation of the supplier and its supply chain performance is very
complicated ; there are lots of factors and criteria has to take into consideration. Moreover, and
the criteria affecting to the consideration is case by case. In general, low profit impact and low
risk outsourcing risk, the Company could be more on consideration of profit efficiency.
Moreover, project or product in lower strategic values could be turning into the outsourcing
approach. However, beside to the profit return, the Company has to choose to the right criteria.
According to the Fallahpoura et al (2017), selections onto sustainable suppliers are determined
by main themes known as sustainability, economic, customer services, internal business process
and innovations. [4] and [5].
Furthermore, adopting effective strategy in relation to select sustainable supplier
selection and thus evaluates positive outcomes. Here, supplier selection plays a crucial role in the
management of supply chain and thus focus upon sustainability that has made this selection more
complex. Hence, such decision results in adopting effective tools and techniques so that
businesses and supply chain managers could make more effective decision. It also helps in
carrying out effective expansion and contribution models so that introduction of additional levels
of analysis and application helps in considering the sustainability factors so that appropriate
outcomes could be attained (Fawcett, Ellram and Ogden, 2014).
As mentioned in introduction, outsourcing is an important solution to consumer
electronic industry. Supply Chain Management (SCM) and Outsourcing have been widely
recognised as important tools to enhance organizational performance. Supply Chain (SC) is
defined by Christoper [30,31] as a network of various organizations involved both through
upstream and downstream linkages in different kinds of activities and processes. Supply chain
management (SCM) is the practice of coordinating the flow of goods, services, information and
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finances that move from raw material to wholesaler to retailer to consumer. In the process of
evaluating the performance of the supply chain, choosing performance measures is an important
task because the action of management and solution for improvement are derived from them. As
analyzed by several authors, there are some problems in the studies about the performance
evaluation of supply chain, which go as follows: lack of connection with the strategy; lack of a
balanced approach; insufficient focus on customer and competitors; loss of supply chain context,
thus encouraging local optimization; lack of system thinking; and failure to provide adequate
information on what competitors are doing through benchmarking [32–34].
Through adopting effective supply chain management it helps in selecting effective
selection of supplier and thus carry out effective operations so that business could maintain
competitive position in market. Globalization is the main reason for outsourcing and thus it helps
suppliers for increasing their products or services and thus influence large number of consumers
towards firm.
On the other hand, outsourcing helps companies to improve quality and efficiency,
increase the access to functional expertise, and raise the potential for creating strategic business
alliances and reduce internal administrative problems [35,36].
SCM and outsourcing have both been given increasing attention, as their applications have been
recognised by many as significant profit and performance enhancers. Every business is a part of
a big SC and supply network [37,38].
Christoph [11] discussed about the main barriers on: supply chain information sharing,
learning, relationships, complexity and flexibility. Lack of balanced approach: measurement
could not differentiate the weight on each category, for example, sometime it is over
concentrated to the finance aspect by measuring it such as ROI and EDITA etc.
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In the current era of competitiveness and globalization, it is considered as effective
supply chain measures so that logistics options and sources are considered as effective and
therefore it helps in seeking to implement within highly visible supply chain management. Thus,
through making decision regarding how to undertake bet integration and advancing technologies
within firm's supply chains. Also, it is significant than ever to evaluate the different existing
options in today (Monczka and et. al., 2015). It is essential for firm to closely examine within
internal cultural alignment and thus develop core competencies so that capabilities of firm could
be raised. Also, it is essential for firm to make effective decision making and thus obtain funds in
relation to take initiative so that identify the different factors that carry out supply chain
management services. Supply chain management helps in considering that it is essential for
individual to determine the state of their existing outsourcing supply chain. Outsourcing logistics
helps in preventing losing customers and revenue so that proper in-house infrastructure could be
developed and thus carry out short term logistics services in terms of attaining desired results
(Mangan and Lalwani, 2016).
Balance scorecard (BSC) – introduction and drawback
Balanced scorecard has have applied practically in entrepreneur level organisation for
over 20years. Balance scorecard (BSC) is one of the most common measurement method to the
organization performance, the performance evaluation aspect is various view of perspectives and
measurements. BSC also provide a limited number of measures that are most critical for
reducing overload information for analysis. Mostly BSC provides with measurement of customer
perspective, internal business processes, and org growth, learning and innovative.
The main theme of framework is providing the performance analysis procedure for
achieving the sustainability performance of outsourcing supply chain. It is essential for business
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to carry out effective outsourcing through carrying out effective perspectives in regard to
develop objectives, measures and thus attain set targets. There are different actions that are being
taken by Balance ScoreCard approach such as-
From Kaplan’s Four perspectives of balanced scorecard [6],
 Financial perspective: This measurement is the evaluation of the strategy leads to
improve in term of economic for 1. Financial performance is expected to meet. 2. The
measures are the endpoint of cause-and-effect relationships regarding to other
perspectives. It is often considered as stewardship and thus helps in offering more
appropriate name within public sector so that financial performance of firm could be
improved. With the help of such perspective it results in carrying out the analysis so that
desired performance could be attained.
 Customer perspective: This measurement is the evaluation to the customer/marketing
section concerning to the degree of satisfaction and security to customer and the
sustainability of competitive advantage to the market. Further, such perspective helps in
identifying the business performance from the point of view of client or other key
stakeholders in regard to design the factor so that outsourcing of supply chain could be
attained.
 Internal Process perspective: This measurement to the business process inside the
organization leads to achieve to the expectation of customer in particular market and to
the shareholders. It helps in viewing the business performance through which quality and
efficiency related to product or service could be attained so that business processes could
be carried out in an effective way. Thus, it is significant for developing effective internal
process perspective so that Balance Scorecard function helps in carrying out appropriate
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targets. Through such way outsourcing function has been identified and thus it helps in
measuring the progress so that supplier could carry out their services in an effective way
(Seuring, 2013).
 Learning and growth perspective: This measurement about the infrastructure which has
the essential for achievement of the objectives of other three perspectives. This
perspective mostly confirm to the qualification, motivation, goal orientation of
employees, and company information systems. It is the best way through which business
performance could be viewed and thus identify different resources such as human capital,
infrastructure, technology, culture and other capacities so that breakthrough performance
could be attained.
Balance Scorecard strategic objectives
It could be evaluated that defining strategic objectives in relation to continuous
improvement activities helps in implementing effective strategy so that appropriate outcomes
could be attained. However, understanding the breakdown structure it helps in assessing the
strategy that results in helping the objectives so that strategic targets could be attained. It is
essential for business to enhance revenue, increase customer or stakeholder experience and
improve the cost effectiveness of different programs (Ahi and Searcy, 2013).
Strategy mapping
It is stated as one of the most powerful elements within Balance Scorecard approach so
that appropriate strategy mapping needs to be done. It is significant to visualize and
communicate different values created by the firm. Further, it helps in developing effective
strategy map in regard to develop effective solutions so that logical, cause and effect connection
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could be build in regard to enhance the performance of firm in market. Further, outsourcing
supplier firm requires to carry out effective mapping and thus enable firm to enhance its internal
process perspective so that desirable results could be attained. It also enables outsourcing
supplier to create desirable results within customer and financial perspective (Ellram and
Cooper, 2014).
2.2 Balance Score card - The drawback
Balance score card can be determined to be a management system or strategic planning
that is used by organization. It is focused on making workers understand what is to be
accomplished. Further, it also contains proper monitoring and measures taken for strategic
targets.
The relationship between balanced scorecard (BSC) and company’s value as an area of
inquiry has sustained interest among researchers over the past decade. BSC measurement tends
to be subjective, and the performance measures that are not clearly defined. In some ways,
participants may be too subjective to one of the measurement or they may not too understand to
the definition of each performance measure. As concluded by Nopadol [7], Balance scorecard
may show up to its disadvantage if in the way of deficient definition and utilization of
performance indicators
According to Kaplan and Norton [12], the conditions for implementing the balanced
scorecard are that companies in a highly dynamic environment have to change their strategy
constantly, which leads to frequently changing the measures in the BSC. Also, according to
Felice [13], the issue, the main issue for the application of are 1. No optimum quantity of
measures in the BSC, too much or too small measures in the perspective, too many measure on
one perspective in one time by most of them could reflect to the Company’s goal and strategy,
and the implementation process duration is too long.
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There are different drawbacks identified within Balance Scorecard approach so that it is
essential for business to organize and manage an effective business activities. Therefore, it is
essential to embrace effective strategic planning techniques so that different drawbacks could be
identified which are as follows-
 Cost and time- Through using balance scorecard effectively it helps outsourcing supplier
company to develop effective strategies and adopt different strategic planning tools so
that it could be costly and time consuming methods. Balance scorecard involves different
strategic planning process so that it helps in experiencing it and involve different outside
consultants so that desired outcomes could be attained. Further, it assesses that it could be
used in relation to obtain significance of adopting effective measures and thus use the
tool so that desired results could be attained (Christopher, 2016).
 Incomplete information- It is another drawback identified by business in relation to
obtain incomplete information so that it is being dependant upon the value of information
so that it impacts upon the work of outsourcing supplier company. However, also
evaluating the effectiveness in relation to training efforts it identifies that individual need
to be trained so that appropriate outcomes could be attained.
 Employee resistance- It could be assessed that there are various individuals who
supported the method of balance scorecard and thus use of strategic planning technique
so that employee resists to such method (Fawcett, Ellram and Ogden, 2014). Hence, it is
considered as effective planning tool and thus employee resists that is the main drawback
in regard to attain organizational success.
It has been assessed that there are various disadvantage being faced by Balance Scorecard
approach at the time of implementing the same within outsourcing supplier company. Therefore,
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implementing balance scorecard approach helps in identifying the objectives so that break down
the selected objectives in regard to obtain financial outcomes. Further, balance scorecard helps in
developing and overall view of different areas that needs to be identified in regard to ascertain
different objectives that need to be assessed. It could be evaluated the drawback of balance
scorecard in regard to identify the information that is being tracked in relation to applicable the
needs of individuals (Pagell and Shevchenko, 2014).
It could be evaluated that developing effective construction framework that helps in
selection of sustainable outsourcing supplier in regard to carry out effective outsourcing function
so that set targets could be attained. Further, manufacturers are available with different
capabilities in regard to carry out effective supply chain management and quality in relation to
deliver appropriate goods and services. However, it involves different factors that needs to be
considered such as quality, price, services and merchandising and outsourcing firm. It is also
significant for business to adopt effective services that helps in outsourcing the suppliers so that
best cost and products could be obtained in terms of quality (Ross, 2013).
Further, it has been considered that it is a dilemma in regard to select manufacturer to a
right outsource partner within the most of the cases. It assesses that providing good quality of
services and the best of suppliers helps in usually implying to the high cost offer. However,
providing good price would be nice at the time of offer stage but that may face consequences of
poor quality of design in relation to supply chain. Moreover, it is significant for firm to assess
that it always appears to the difficulties in regard to select of right suppliers so that they could be
outsourced effectively and efficiently (Seuring, 2013). It is essential for supplier to understand
the customers need and thus measure in regard to accountable and non accountable factors.
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Through carrying out effective measurements that helps in representing different weighing to the
significant affecting to the customer's impact.
It has also been identified that outsourcing of suppliers have been considered as difficult
process in relation to select right suppliers to fit with customer requirements. There are different
accountable and non accountable factors in regard to measure the responses so that importance
could be given to them. It also helps in identifying the customers impact so that outsourcing
suppliers could be addressed.
Expanding supplier selection approaches
It could be evaluated that there are different evaluation models that helps in carrying out
supplier selection such as weighted liner model, mixed integer programming and linear and goals
programming models etc. Thus, through adopting such models it helps businesses to expand
effective supplier selection approaches and thus crucial decision could be made in terms of
carrying out effective supply of products or services. However, supplier selection research is
being considered as neither environmental nor social sustainability factors and thus focus upon
different environmental considerations so that significant supplier could be selected. It could be
identified that supplier selection has been identified as certain efforts in regard to incorporate
environmental factors within supplier selection (Ahi and Searcy, 2013). Thus, business focuses
upon carrying out environmental concern so that proper regulations need to be identified that
impacts upon reducing the cost of firm.
Sustainability and supplier selection
Supplier selection could be considered as effective social sustainability factors that
focuses upon carrying out environmental consideration within supplier selection research and
thus carry out emerging factors so that corporate social responsibility could be identified in terms
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of improving effective response. Above all, supplier selection requires certain factors that helps
in considering certain factors so that environmental concerns could be identified in order to
reduce the cost of suppliers. Sustainable development helps in frequently carrying out effective
economic, environmental and social development issues so that supplier selection decision could
be made. However, businesses are required to make effective supplier selection decision,
environmental and social factors so that they could introduce different perspectives in terms of
carrying out effective performance and environmental practices adopted by firms. Environmental
practices could be referred as different policies and practices so that it could be monitored and
thus adopt effective responses in terms of selecting effective suppliers (Ellram and Cooper,
2014).
Analytic Balanced Scorecard
To compensate to the drawback of balanced scorecard, several researchers has introduced
with a combination of analytic hierarchy process (AHP), AHP provide an analytical way on the
determination on weight/importance on factor considering to the measure. This is the most
important benefit of AHP to cover up the empty space of BSC, according to eh Felice [13], BSC
analysis method is not an effective tool on determination of weight and effectors in the pool of
factor on the alternatives.
AHP facilitates managers to find their best way for their goal and their understanding the
factory of issue in the priority/level ways in the unidirectional way. Analytic Balanced Scorecard
method would be expected an effective methodology an analytical performance on the
outsourced supply chain. This research is to use with two integration of mythologies - Balanced
Scorecard as the performance assessment and Analytic Hierarchy Process is a decision making
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tool, the main theme of the tool is to prioritize multiple performance perspectives and also
provide a standard measurement parameters.
AHP is mathematical approach for analysis all the defined factors and preferences. These
are done by a mathematical comparison by pairs of factors (criteria) in the same category and
determine the rate scales so to come out the ranking of overall factors (criteria)
Finally, the highest ranking of the criteria will be defined as the main priority on the
decision factors to resolve. Because of BSC’s characteristic on the consideration on tangible or
intangible factors, the decision factors on AHP could be consequence cover tangible and/or
intangible. Since the analysis could be across on the different level of metrics, the analysis level
that could be taken into account of criteria and sub-criteria level.
2.7 Analytic Hierarchy Process
Introduction
It could be assessed that analytic hierarchy process (AHP) is being considered that it is a
multi criterion that helps businesses involved in outsourcing supplier and thus carrying out
effective results so that different objectives, criteria and subcriteria could be assessed in regard to
improve consistency within business. It could be evaluated that supplier firm need to be
outsourced in an effective way so that AHP is considered as effective method through which
crucial decision making could be done. AHP is being stated as the most crucial form that assists
in developing pairwise comparisons that inspires the creation of supplier company and thus make
crucial decision so that appropriate results could be attained (Pagell and Shevchenko, 2014).
Development of a Framework for Sustainable Outsourcing: Analytic Balanced Scorecard
Method
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There are many organizations that deliver their customers with similar set of products and
services. They are affective enough to make sure that they deliver customers with high quality
services so that more and more customers can be attracted. In this context, one of the effective
strategies that are applied by the firm is through outsourcing. This is effective enough to reduce
the cost that are incurred by them. When rate of finance is reduced, then it becomes helpful for
the business to deliver customers with low price products. Further, it improve the quality of
services, organizations make sure that they outsource supply chain management. In order to
monitor the improvement performance, Analytic balanced scorecard method is applied. In
accordance with the type of framework that is applied, it contains 4 phase. In this context, it
includes development of framework for sustainable outsourcing. It contains identification of
areas that increases the cost. Those areas are identified and appropriate steps are taken through
which it can be outsource. Further proper monitoring take place that is done by analyzing the
cost that is incurred in development of products.
Advantage of AHP
There are various advantages of AHP that helps in assessing that it is straightforward and
convenient process. Also, simplicity is being carried out in regard to use pairwise comparisons.
Further, there is consistency in evaluating the AHP so that hierarchical process is developed.
Following are the different advantages of using AHP-
 AHP being a hierarchical structure it helps firms to make effective decision making so
that high level strategic objectives and specific metrics could be found.
 However, analytic hierarchy process goes beyond financial analysis so that both
quantitative and qualitative integration would help in obtaining desired outcomes.
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 AHP helps in decision making so that they could measure the relative significance of
projects which involves their benefits, costs and risks.
 Analytic hierarchy process could also be applied within any businesses because the inputs
are normalized either through using numerical data or subjective judgements at the time
when metrics are not available. AHP process helps in analysing the sensitivity so that effective practice is being carried
out.
Implement AHP for selection on decision making and option selection
It could be assessed that businesses are trying to outsource their activities as much as
possible in regard to prevent the issues and thus use the business capabilities in relation to make
effective decision making. Here, AHP has been selected in regard to make decision upon
outsourcing supply chain management and selection new vendor that is suitable for business
requirement. Thus, analytic hierarchy process results in selecting the vendor supplier and make
crucial decision on outsourcing supply chain management so that appropriate outcomes could be
attained. Through which it is being considered as crucial aspect and thus outsourcing supply
chain management helps in maximizing the efficiency for selection of new vendor.
2.8 Application of Analytic hierarchy process
Here, applying Analytic Hierarchy Process work with Balance Scorecard approach
results in outsourcing supply chain. Therefore, it is significant to analyse both these tools and
thus results in leveraging each other in regard to maximize efficiency to the outsource supplier
selection. With the help of such methods it results in selecting significant outsource supplier so
that crucial results could be attained. Thus, through applying the analytic hierarchy process it
results in evaluating different forms such as-
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 Single choice decision- Within such adopting AHP helps in selecting internet advertising
network. Further, it also helps in evaluating the project so that choice of decision could
be made.
 Multi choice decision- Further, it is another integrated AHP process and thus helps in
developing an effective selection process so that choice could be made within multiple
selection.
 Ranking decision- It involves the selection of the industry in which different institutions
are available and thus they are given certain rank upon which they work.
 Prioritization- Here, applying different models such as six sigmas so that carrying out
AHP results in prioritizing for better resource application.
 Resource allocation- With the help of analytic hierarchy process it helps in analysing IT
outsourcing decision.
 Benchmarking- Through applying AHP it helps in practising benchmarking so that set
targets of outsourcing the best supplier could be done.
 Quality management- Business when applying analytic hierarchy process requirs to select
quality improvement tool in relation to measure the operational efficiency and thus
improve the process of selection of supplier.
Through applying analytic hierarchy process and Balance Scorecard helps in outsourcing
supply chain. Thus, it is the best way through which business aims to adopt such tools and thus
carry out outsourcing process so that it results into undertaking effective process and thus
maximize the efficiency to outsource supplier. Therefore, it is being considered as effective and
thus maximizing the efficiency results in selecting outsource supplier so that desired outcomes
could be attained. Both AHP and BSC approaches could be carried out in regard to maximize the
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efficiency to outsource supplier and thus helps in selecting crucial supplier through outsourcing.
Therefore, it helps in improving the efficiency and thus raise the output in relation to obtain
desired outcomes. Balance Scorecard approach helps in carrying out sustainable supply chains
measurement so that effective approach is being selected in regard to select effective outsourcing
supplier.
Applying both the models i.e. Analytic Hierarchy process and Balance Scorecard helps in
outsourcing supply chain. Thus, it is considered as the best method through which AHP and BSC
helps in leveraging each other and carry out desired results so that maximum efficiency could be
attained to outsource supplier. It is essential to implement such methods to outsource supply
chain and thus obtain desired results. Such methods are required to leverage each other and
maximize their efficiency so that outsourcing could be done in an efficient manner. AHP and
BSC helps in identifying the outsourcing supplier selection and thus carry out the outsourcing
function that helps in selecting the best supplier.
In regard to adopt BSC and AHP it helps in applying outsourcing supply chain and thus
helps in maximizing its efficiency so that selection of outsource supplier results in attaining
desired targets. Hence, it is significant for firm to undertake effective strategy so that outsource
supplier selection could be done in terms of improving its efficiency and thus results to attain
desired targets. Selection of outsource supplier is one of the crucial task that results in
maximizing the efficiency so that output could be attained in an effective and efficient way.
2.9 Sustainability of outsource partner
It could be assessed that in regard to carry out effective sustainability of outsourcing
partner which helps in carrying out effective selection of outsourcing partner so that appropriate
results could be attained. Thus, the current outsource supplier results in executing the
20

sustainability of supplier partner so that performance could be measured in an effective and
efficient way. There are different ways through which current outsource supplier functions which
are as follows-
 How to measure their performance- It is essential for business to measure the
performance of outsource partner and thus for that they need to undertake effective
strategies that results in adopting effective performance measures so that outsourcing
supplier partner could undertake effective ways in terms of attaining desired success.
Businesses are required to measure their performance by using effective methods so that
appropriate outsourcing supply chain could be selected. Thus, it is the crucial aspect that
results in measure their performance so that AHP and BSC method could result in
providing benefit to raise their performance.
 How to sustain to their relationship- Further, it is essential to apply AHP and BSC that
helps in carrying out outsourcing supply chain and thus focuses upon sustaining to their
relationship. It is the best way through which different methods need to be adopted so
that appropriate outcomes could be achieved and thus measure the sustainability of
outsourcing partner in relation to their selection. Sustaining to their relationship is crucial
task as it helps in enhancing their performance and thus achieve organizational targets.
Through adopting effective measures in regard to adopt appropriate areas so that
sustainability of outsourcing partner could be attained. Therefore, it is significant for
business to undertake effective measure that helps in evaluating the sustainability of
outsourcing partner.
 Keep to their performance on-going stable- It is the last step within sustainability of
outsource partner and thus helps in keeping their performance on going stable. Thus, it is
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the best way through which desired performance could be measured and also helps in
improving their performance so that set targets could be attained. Therefore, undertaking
effective strategies helps in maintaining their performance stable so that performance
could be carried out in an effective way.
With the help of adopting such sustainability of outsource partner that focuses upon
carrying out effective performance in terms of selecting outsource partner and thus carry out
stable performance so that appropriate targets could be attained. Therefore, supply chain
businesses are required to adopt effective measures so that effective responses could be selected
in regard to adopt sustainable outsource partner and thus results into carrying out effective
relationship among each other. Hence, it results in safeguarding effective measures so that
relationship could be developed. Therefore, it is being affected as the way through which
performance related to on-going operations could be carried out.
The competitive forces model and generic competitive strategies Michael Porter’s Five
Force Analysis is a very useful tool for business strategies. The analysis is based on the
comparison that profit margins differences between industries, which can be explained by the
structure of an industry. The primary purpose is to evaluation of attractiveness of an industry.
Besides, the analysis also provides an initial point for formulating strategy and understanding the
competitive landscape in which a company operates.
In General, the state of competition in an industry is based on that 5 competitive forces.
The collective strength of the captioned forces determines to the profit potential to an industry.
Moreover, the profit potential is measured as long-term return on invested capital. The measure
criteria of profit potential is different – different strength of the five forces in different industries
would be different. [44] (Smook 2005), as shown in figure xxx those included
22

source: http://masonmyers.com/wp-content/uploads/2013/02/fiveforcesmichaelporter.png
1. Threats of new entry:
New entrants bring new capacity and resources to the industry in which their one of the
major achievement is getting certain market share so as to sustain to finance the business. The
pressures on new entrants which may come from competition for market share, the desire to gain
market share may lead to price reduction and consequently results of lower profitability. If entry
barriers are high and difficult for newcomer to capture market then the threat for new entrants is
not series.
2. Threats of substitute:
The Company may face the competition of similarity of product/service’s attribute or
functionality. This cause to the impact to the industry profitability with 3 ways. Firstly, the
profitability of existing product will be limited due to the new introduced new substitute.
Secondly, Facing to the new substitute, the existing product should be reposition to its pricing
strategy, this will impact to the profit margin.
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For example, Video game entertainment as a substation of movie entertainment, Tradition film
of camera was replaced by the digital camera and digital camera was replacing the built-in
camera in mobile devices.
3. Bargaining power of suppliers:
Company of every industry purchase from different suppliers accounts for different
proportion of cost. More bargaining power of suppliers can domain their negotiating leverage to
charge in higher prices or bargain to more favourable terms from industry competitors, and
implies to lower industry profitability. If there are only one or two suppliers of an essential input
product.
4. Bargaining power of buyers
Powerful customers can bargain to the force offer prices down or demand more services
at the existing prices for capturing more competitive for customers’ side. The power of buyers
would be getting the highest to Company if 1. Buyers have the most adhesive relationship to
Company’s competitor, 2. When products are fungible and represent a significant cost for the
buyer, and 3. The cost of switching from one competitor to another is low – the bargaining
power of buyer is high if industry’s product/service are undifferentiated, and the importance of
prices is more significant vs quality.
5. Rivalry among existing competitors
If competition is intense, it will cause into price down and lower to the cost of profit due
to the price down or higher effort to the competition. Companies compete away the value they
create. Rivalry will turn into significant fierce once if 1. There are too many competitors for
request by buyers’ needed, And competitor companies are closed in size and its marketing
positioning. 2. Whole industry growth is slow. 3. Overall costing are in high margins, which
24

create space for cost down. 4. The pay off the exit from industry is high. Competitors are highly
committed to the business. Source: [www.isc.hbs.edu] 45
There are high fixed cost, which create incentives for price cutting
Exit barriers are high
Rivals are highly committed to the business
Firms have differing goals, diverse approaches to competing, or lack familiarity with one another
Based on those 5 forces’ concept, if the forces in an industry were collectively weaker, overall
profitability would be high because the competition is not strong; alternatively, if the competitive
forces are strong, then the Company would get harder to make the profit.
By understanding the level of competitive forces of the organizations, the Company should be
able to position to their best competitive edge by changing or adjusting to the Company’s core
competence against to their situation.
The Value Chain Analysis
Value Chain Analysis is another tool for improving operation efficiency and
performance. The tool provides an overall view product passes through to the value chain and
each activity which value-added to the product and service. Thus, those value-added process
should be under control of an optimal level for Company to add up its overall competitive edge ,
such as cost reduction or making differential of product/services (Porter, 1985). For another
point of view, the Company should realize to its internal process which part of value.
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The advantages of Value Chain Analysis
1. This is a very flexible strategy tool for looking at a Company, its rivals and also covers to
every place in the industry’s value system.
2. The value chain is used to diagnose and create the competitive edge in terms of the
overall cost and differentiation.
3. Facilitate to understand the Company’s issues include to the promise of committing
Company value and promises because focuses attention on the activities needed to deliver
the value preposition.
4. Comparing business model of Company for a deeper understanding to the Company’s
strength and weaknesses to be included a SWOT analysis.
5. The use of field for value chain useful for many different industries – Manufacturing,
customer service and retail.
The disadvantages of Value Chain Analysis
Porter’s book Competitive Advantage is heavily oriented to a manufacturing industry, his
discussion is heavily oriented to a manufacturing business and thus this fit into this
project nature.
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Chapter 3 - Design methodology
The aim of the research is developing a comprehensive process of evaluation to outsource
supplier where the process should be under and effective, efficient, company strategic based,
holistic and also providing a feedback for modification. With the combination of BSC and APH
strategic base.
3.1 Design mythology
Discussed in the Chapter 1 and 2, the main issues on the selection of outsourcing are the
unfamiliar to the vendors’ background and there are insufficiencies of systematic analysis of
vendor verses to each project’s situation.
The workflow of the model design framework is divided into five different stages as shown in
Figure 3-1
Figure
3-1 Five phases of establishing the model. (Source: http://www.strategic-planet.com/wp-
content/uploads/2013/08/Strategic-Management-Framework-1.jpg)
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3.2 Phase 1 – Identify Building
In this phase the purpose is to identify and collect to the relevant information used for
analysis to the next step. The information subjected to identify that involves macro environment
including economic situation, government policies, social economic environment; the
competition environment, which consist of market share, competitors and customers recognition.
Information will be gather and identified internally and externally. Internal information
could be collected by Company’s impact its performance onto the Company are production
capability, technology development, human resource management etc.
In external way, academic articles and thesis, marketing intelligence, and industry updated
information support to the information. Besides, data collections are included to the following
ways.
 Interview with current and past off-shore supplier
 Statistic of successful rate
 Interview with internal department manager to the
 Off shore suppliers back-ground
 Academic material
3.3 Phase 2 – Strategic Analysis
Phase 2 mainly aims to identify the macro and micro environments related to the
Company. It is identified the current business context faced by the Company, including the
external pressures and internal factors.
3.4 Phase 3 – Problem definition
3.5 Phase 4 – Strategy formulation
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Strategy formulation is the process of identifying the business strategy. The right
business strategy must be chosen in order for required to achieve to its objective(s). Right
business strategy helps for setting business plans, operation processes, and human resource
strategies. Strategy formulation is being considered as effective form through which effective
outcomes could be attained. Thus, with the help of effective strategies it helps in formulating the
strategies so that supplier could be outsourced. Therefore, it is an effective step within such
process and helps scholars to undertake effective approaches in relation to formulate effective
strategies and desired results could be attained. Following are the different methods of strategy
formulation such as-
1. Evaluation method for new outsource vendors- It is being considered as effective method
through which identified strategy could be formulated in regard to outsource new
vendors. Thus, it is being considered as effective approach that helps in evaluating
different outsourcing vendors so that appropriate outcomes could be attained. Thus,
through adopting effective measures it results in outsourcing vendors so that strategy
could be formulated effectively and efficiently. Business is required to adopt effective
methods for evaluation in regard to outsource new vendors so that appropriate results
could be attained. Thus, it helps in enhancing the effectiveness and thus adopt appropriate
outsource vendors so that suitable one could be selected. Hence, it is significant for
undertaking effective practices so that appropriate strategy formulation could be done in
terms of adopting the best methods and outsource new vendors in order to attain desired
results. New outsource vendors helps in selecting suitable vendors so that it could be
beneficial for formulating the strategy and thus adopt effective methods so that set targets
could be attained.
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2. Evaluation procedure- Further, it is being considered that an effective evaluation
procedure is being adopted in regard to carry out selection of new outsource vendors.
Thus, it is considered as effective method through which selection of new outsource
vendors could be done. Thus, it helps in improving the efficiency so that best results
could be attained. With the help of this effective strategy need to be adopted in regard to
carry out the evaluation procedure and thus undertake appropriate results so that selection
of new outsource vendors could be done. Hence, it is significant to adopt effective
strategy that results in adopting appropriate tactic so that desired procedure could be
attained in regard to overcome the issues.
3. Active vendor monitoring and performance measurement- It is another method through
which active vendor monitoring and performance measurement method is being adopted.
Thus, through carrying out such analysis it results in adopting effective methods so that
proper monitoring and performance measurement tools should be adopted. Thus, it is
significant in terms of identifying that effective vendor should be selected so that
performance could be measured. Hence, appropriate strategy need to be focused in regard
to monitor and measure the performance so that best results could be attained. It is
essential for individual to carry out effective monitoring of vendor and thus measure their
performance so that it could result in attaining appropriate outcomes. Further, vendor
monitoring is considered as significant aspect so that set goals could be attained and also
measuring the performance results in achieving organizational goals,
4. Mythodology to keep vendor's relationship- Further, it is essential to adopt effective
mythodology so that vendor's relationship could be identified and thus helps in adopting
effective methods so that appropriate results could be attained. Therefore, it is significant
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to undertake desired targets and thus results in identifying the relationship with vendor's.
Therefore, with the help of adopting effective relationship it is being considered as
crucial aspect so that vendor and other individual could develop appropriate outcomes.
Hence, adopting effective approaches results in keeping vendor's relationship so that
success could be attained.
d. i
Thus, it could be assessed that adopting effective strategy i.e. AHP and BSC results in
evaluating the effective approaches so that desired targets could be attained. Evaluation method
involves different approaches such as APH and BSC. Both these methods are considered as
significant in terms of improving the outcomes so that appropriate evaluation method could be
adopted. Thus, it is significant in terms of carrying out effective results so that desired evaluation
could be done in regard to undertake effective strategy. Such evaluation method results in
focusing upon enhancing the strategy so that appropriate results could be attained.
The balance Scorecard Approach helps in carrying out effective evaluation method that
helps in using different forms such as communicate what individual is trying to accomplish,
aligning the day to day work that helps everyone to carry out the strategy, prioritizing projects,
products and services and thus measuring and monitoring the progress towards attaining strategic
goals. It is the best way through which system helps in connecting the different alignment so that
supply chain could be outsourced properly (Pagell and Shevchenko, 2014). Thus, such elements
helps business in assessing the core vision, core values, strategic focus areas and more
operational elements such as objectives in relation to KPI's helps in carrying out the initiative so
that set targets could be attained. Balance Scorecard evaluation method has been used
extensively within business and industry in regard to carry out effective outsourcing functions so
that they could be closely related to strategic planning and thus adopt effective management tools
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in regard to influence business ideas and outsource activities so that set organizational goals
could be attained (Ross, 2013).
Further, AHP is also considered as evaluation method that helps in benefiting the study
and adopt effective tools in regard to determine the weight and effectors so that factors could be
determined as alternative way for considering the study. AHP is considered as effective tool that
helps managers in facilitating and identifying the best way through which they could find the
best way to attain goal and understand their determination so that hierarchical process could be
carried out. Therefore, it is considered as efficient tools that helps in understanding the goal and
thus setting priorities so that expectations could be met. Hence, it is one of the effective way
through which Balance Scorecard method helps in carrying out analytical performance through
outsourcing supply chain. Also, research is to use with two different integration mythologies i.e.
Balance scorecard and Analytic Hierarchy Process. Thus, it helps in prioritizing multiple
performance perspectives in relation to provide a standard measurement parameters.
Adopting both these evaluation methods results in improving the performance of research
and obtain standard measurement parameters so that prioritizing the performance could be done.
It is also considered as standard measurement parameters and thus results in improving the
performance. AHP is one of the significant tool that is carried out for analysing different factors
and preferences. All such mathematical tools are carried out in relation to identify the rate scales
and thus give ranks upon overall factors. AHP factor helps in analysing the different metrics
level and thus undertake different level so that criteria could be made in regard to analyse the
outcomes and thus improve the selection of sustainable outsourcing suppliers.
There are different evaluation methods such as AHP and BSC that is being worked
through which effective decision has been undertaken so that set goals could be attained. Further,
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it is being considered as the structured technique that helps in assessing complex decisions so
that appropriate outcomes could be attained. Analytic hierarchy process is being termed as one of
the crucial evaluation method so that structured technique helps in decision making. There are
different decision that could be made in terms of carrying out different evaluation as per the
situations within different fields such as government, business, industry and healthcare
(Christopher, 2016). Thus, it is significant for business to carry out effective structuring and thus
organize as well as analyse complex decisions that needs to be made in regard to carry out
effective decision situations. Through adopting effective decision it helps in adopting effective
hierarchy so that analytic hierarchy process needs to be adopted so that decision could be made
in terms of assessing the set output.
Through carrying out effective evaluation framework it helps in understanding the
effectiveness of outsourcing suppliers so that manufacturers could be identified. With the help of
using balance scorecard and analytic hierarchy process approach helps in carrying out effective
procedure so that success could be attained. It helps in identifying that good supplier has been
assessed for long term business development, sustain the long term partnership and thus carry
out effective mutual understanding so that success could be attained. Through proper monitoring
and control it helps in carrying out effective outsourcing vendors so that effective response could
be achieve and thus give feedback for improving the plan to vendors so that satisfaction could be
attained.
It can be evaluated that from the historical data that around 30% of current suppliers aims
to discontinue with their business partner relationship because they could not fully understand
the suppliers weaknesses and threats in different respects. Businesses are required to set up new
suppliers which could be a costly process for firm and thus it is essential for business to identify
33

different factory audit and thus examine the supplier so that manufacturing process could be
identified. With the help of appropriate factory audit contract negotiation et helps firm to often
spend upon human resources and time so that it could be evaluated (Ross, 2013). Thus, it needs
to be identified as effective process otherwise it impacts other resources. It is essential to identify
the new supplier because it would be failed to go upon evaluation in order to carry out effective
responses so that desired capability of supplier could be assessed. Therefore, it is being evaluated
as more accurate upon preliminary work to the evaluation that could bring up high efficiency.
Through adopting effective supplier sourcing it helps in evaluating the process so that workload
could be overcome and thus expenses could be identified of firm.
Through implementing both AHP and BSC it helps in evaluating the outsourcing vendors
and thus involves implementation and measurement of performance in relation to adopt effective
targets. Both these methods are used in regard to evaluate the outcomes and thus carry out
outsourcing process of new vendors. Balance Scorecard approach is considered as the way
through which improvement upon the performance for a service providing process helps in
improving the performance in a successful manner. Improvement is stated as the restricting
performance pressure that helps businesses to carry out the desired activities. It is also essential
for firm to carry out effective process and thus strengthen the balanced score card application.
BSC helps in continuous improvement and problem solving which results in improving
performance and thus render the best quality service to attain customer satisfaction. Thus,
adopting effective framework that results in making crucial decision so that requirement of
customers could be fulfilled. However, the motivation of such evaluation method helps in
prioritizing through addressing the measures to be taken that can lead the business in enhancing
their performance.
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It is significant for businesses to undertake effective evaluation method such as BSC and
AHP that helps them to evaluate the market's performance so that business could improve their
performance and thus lead to attain business objectives. In such competitive world, it helps in
predicting business processes and thus lead firm to attain future prospects so that market share of
firm could be raised. Adopting effective performance measurement approach it helps in focusing
upon adopting evaluation method and thus helps in achieving competitive performance in order
to improve short term thinking. It is significant for businesses to survive in current competitive
market so that progress could be attained in terms of customer relationship.
Furthermore, adopting effective strategy such as APH and BSC helps in selecting
sustainable supplier selection and thus evaluates positive outcomes. Here, supplier selection
plays a crucial role in the management of supply chain and thus focus upon sustainability that
has made this selection more complex. Hence, such decision results in adopting effective tools
and techniques so that businesses and supply chain managers could make more effective
decision. It also helps in carrying out effective expansion and contribution models so that
introduction of additional levels of analysis and application helps in considering the
sustainability factors so that appropriate outcomes could be attained (Fawcett, Ellram and Ogden,
2014). Through adopting effective supply chain management it helps in selecting effective
selection of supplier and thus carry out effective operations so that business could maintain
competitive position in market. Globalization is the main reason for outsourcing and thus it helps
suppliers for increasing their products or services and thus influence large number of consumers
towards firm. In the current era of competitiveness and globalization, it is considered as effective
supply chain evaluation method so that logistics options and sources are considered as effective
and therefore it helps in seeking to implement within highly visible supply chain management.
35

Thus, such methods are chosen for evaluation and making decision regarding how to undertake
bet integration and advancing technologies within firm's supply chains. Also, it is significant
than ever to evaluate the different existing options in today (Monczka and et. al., 2015). It is
essential for firm to closely examine within internal cultural alignment and thus develop core
competencies so that capabilities of firm could be raised. Also, it is essential for firm to make
effective decision making and thus obtain funds in relation to take initiative so that identify the
different factors that carry out supply chain management services.
Supply chain management helps in considering that it is essential for individual to
determine the state of their existing outsourcing supply chain. Outsourcing logistics helps in
preventing losing customers and revenue so that proper in-house infrastructure could be
developed and thus carry out short term logistics services in terms of attaining desired results
(Mangan and Lalwani, 2016).
With the help of adopting effective evaluation method, these are considered as crucial in
terms of measuring and implementing strategy in regard to attain desired results. It also helps in
improving the application of APH and BSC evaluation method so that it results in enhancing the
effectiveness and thus set targets could be attained. It is crucial to improve the implementation of
such changes and thus bring in executing them so that appropriate results could be attained.
e) Phase 5a- Implementation and measurement
It is essential for business to establish appropriate KPI for performance measurement and
understand the different perspective so that appropriate results could be attained. Setting
effective KPI for performance measurement helps in measuring performance and thus obtain
appropriate outcomes. Organization is required to set KPI (Key Performance Indicator) for
measuring performance and thus achieve desired results. Through evaluating the outcomes and
36

thus reach towards set targets it helps in improving the performance and then measure as well so
that objectives could be implemented accordingly. Hence, there are different KPI's that needs to
be establishes for measuring performance and thus desired targets could be attained, further,
through adopting appropriate results. Setting key performance indicators results in improving the
financial, customers, learning and development, internal process perspective. All these KPI's are
set as performance measurement tool and thus results in performing appropriate analysis so that
targets could be measured in an appropriate manner. Establishing KPI helps in improving
performance and measuring the same with different perspective so that further analysis could be
carried out. It assists in identifying the responses and thus improve the performance so that it
could be measured in an effective way. Following are the different KPI for performance
measurement with below perspective which are as follows-
 Financial perspective- Through reviewing the financial perspective it helps in measuring
the performance with the help of appropriate measurement tool so that appropriate results
could be attained. It helps in establishing KPI for performance measurement is
considered as one of the main tool that helps in improving desired results. Through
setting financial perspective it results in identifying the main output through which
performance could be measured of firm.
 Customer perspective- It is another perspective that helps in measuring KPI in relation to
identify the needs and wants of customers so that business could enhance their
performance and thus appropriate outcomes could be attained. Through evaluating the
perspective and setting it as KPI that helps in improving the performance in relation to
customer perspective so that set targets could be attained.
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 Learning and development- Furthermore, learning and development is considered as
another KPI for performance measurement that helps in enhancing the learning and
development aspect so that desired results could be attained. Therefore, it is essential for
improving the learning and development performance measurement tool which helps in
improving the capabilities in regard to attain desired results.
 Internal process perspective- It is the last perspective that helps in measuring the
performance so that it could be measured in terms of identifying the results. Thus,
carrying out internal process perspective results in measuring their performance and thus
obtain appropriate outcomes. Hence, it is crucial for organization to obtain appropriate
KPI for performance measurement so that KPI's could be set.
Phase 5b
Here, appropriate process needs to be adopted that helps in carrying out the improvement
so that active vendor could be identified that results in attaining appropriate results. Hence, it is
crucial for firm to adopt effective cooperation to Company S and thus helps in enhancing
suitable outcomes. Therefore, it is crucial for firm to carry out effective improvement process
that helps in obtaining active vendor response and thus focus upon adopting appropriate
cooperation in order to obtain outcomes. It is significant to undertake effective improvement
process in relation to execute vendor under cooperating and thus relies upon the set objectives so
that appropriate research could be carried out in terms of enhancing the operations of firm.
The propose of this project is defining to a new methodology to the evaluation of
outsource supplier’s sustainability. A framework of evaluation tool and procedure should be
include to the value chain of in the three aspects.
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1. Firstly, analysis to essential factors of performance of outsources suppliers. Base of the
result of analysis, define to the criteria onto the attribute of analysis.
2. Factor TWO: The production process management for better product, the evaluation
process improvement uses information systems for recording and analysing the outsource
supplier’s capability making
3. Factor THREE, computer aided matching management strategy to ensure the strategy can
be correctly carried out by skilled people and improved
3.5.1 Analysis to the essential factors for performance of outsources
Figure 3-2 Workflow of building the framework
Step 1 – Current Situation Analysis
Step 2 – BSC analysis and APH Criteria definition
Step 3 – Analytical BSC set up
tep 4 – Result analysis, review and modification
Step 1: Current situation analysis
Regarding to the objective of the project, the fundamental requirement is to provide a
company with a formal method to analysis and evaluate to current or new suppliers’ capability to
cope with customer’s requirement. This should be done during initial stage of suppliers’
selection.
Here below shows to the overall design methodology of supplier selection process.
The outsource supplier management selection and evaluation framework could be dividing
into 3 sectors, one is the Supplier Evaluation Process and also Supplier Coding Process and
Supplier Matching on RFQ process
Fig 3.1 Design methodology of supplier evaluation process
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The methodology should give out output with following.
1. The vital issues during supplier management could be addressed out for consideration as
the attribute for supplier evaluation process. The issues define in supplier management
could consider in different aspect such as technical capability, quality, financial and
project management etc.
2. All compare the attribute context to benchmark with others supplier, so as to identify the
advantage or disadvantage compared among to the supplier.
3. Output comes out with the attributes with ramifications
4. A score of attributes and also overall rating of a supplier should be provide, as such there
could be providing with a comparative platform
5. A data structure with attribute could be provided for database
6. The system all attributes after evaluation process
Regarding to the process of selection of outsource suppliers, the criteria on each
supplier’s performance to the different perspectives. Thus, there should be a procedure to define
the critical attributes.
3.1 Supplier Coding Process
This is process is collecting company profile on each supplier, a questionnaire and also
company information to each supplier, at the same time, it could shortlist / filter some supplier
who are not qualified with essential requirement at the initial stage.
3.1.1. Company profile
Therefore, there should be a database system to record the company profile. Moreover
the company profile should be provided. The company profile database is used for the company
to understand the company situation in the most basic information. The information should be
40

included with essential information to fulfil or otherwise the company could not be consider,
such as
1. The ownership of the manufacturing site to the supplier non-manufacturing based
company.
2. Company location, if is not capable for outsource partner etc.
3. Business Type ( OEM, ODM, or just trading)
4. Any company certification. E.g. Social accountability (essential for export to USA / EU
customer )
5. Year of establishment (a experienced company or new)
6. Factory Size (area)
7. Number of Workers
8. Company capitals
3.1.2. Supplier coding system
Each company would provide a code for chasing to their company, As company status
would be changed by years, so the company profile could be renew each year so to getting the
most updated information.
Supplier provides with a particular ID and also ID of its offer item (example, for
procurement of finish product or ODM project). Both IDs are stored in the Companies’ database
for achieve to the information during RFQ from customers.
Moreover, the supplier coding marked with their evaluated scores and weighting or each KPI so
for the Company sorting out to the most optimize supplier to achieve the RFQ request. In this
project, KPIs will be taken into account for overall rating, in general, which they are: Offer Price,
Product Quality, Production Capability, Company Facility, R&D maturity, Customer Response
41

and Services, Financial Status. The attribute of KPI could be changed according to the nature of
project or product category, but need to ensure all selection and comparison should be to the
same as
For example,
Supplier A
Item provided: Finished Goods/ ODM
projects.
KPI (attributes) Score
Offer Price, Product KPI 1
Quality KPI 2
Production Capability KPI 3
Company Facility KPI 4
R&D maturity KPI 5
Customer Response and
Services KPI 6
Financial Status KPI 7
Overall rating
This is the most important procedure on the outsource supplier selection. This involves to
the complete analysis to each supplier to output a set of data from attributes. The data would be
42

store into the supplier database, so there would be eventually form into the huge date base, once
the RFQ analysis has received, the similarity of suppliers could be called out from data-base so
to match to suitable suppliers for selection.
3.3.1 Key Performance evaluation criteria analysis
In practice, the judgement hierarchy could be divided into 4 main criteria, each main
criteria diversified into several different attributes with maximum of 4 to 6 attributes so it could
be clearer priority to make judgement and decision.
The main criteria are below
Those criteria are the main theme of condition for the essence of supplier’s performance
evaluation. Below are the main concerns on each criterion.
a. Business Perspective – Measures to the product quality, functions, reliability and also
workmanship of the production line against any concern to the defective rate such as
product safety, reliability etc. The awareness of quality assurance team (QA) during new
project on the potential risk control and the corrective action follow up. Thirdly, also their
response time to management on the production effectiveness and quality of
workmanship process cause to the defect of product.
b. Customer Perspective – Measures to the on time delivery of order, just-in-time
management, from supply chain to the mass production cause to any potential risk to
delay shipment especially during peak seasons. The unit cost of product comparing to the
other suppliers. Thirdly, the flexibility to the product for customer’s request modification
the merchandise product to a branded product (e.g. packaging, colour, or function).
43

c. Innovation Perspective – the know how of engineering and also the design capability
verses to complexity of product, also their flexibility and creativity to the market treat
and also the customer’s request to the modification of design. The R&D investment
shows to the number of staffs and equipment for the related product development. The
new product road map shows that their capability to the new product continuity following
to the market and technology trends.
d. Financial Perspective – This shows with the capability of suppliers financial health and
also their business operation performance. The Factory Asset and also the payment term
is about their finance situation and also their cash flow liquidity. Moreover, the Large
Enterprise business relationship relation show their operation situation, with some
partnership with big firm, indicates that their active state of business with big firms, those
big firms would intend to do business to the supplier and also show their finance liquidity
is still state in active.
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Figure 3.3 show with the main hierarchy structure of the criteria
Figure 3.3 Hierarchy structure of decision supplier selection
Each characteristic will then could be compare by weighting in term of performance
score on attribute to attribute. Inside each attribute, the characteristic to characteristic could be
will compare by weighting. And then give out the result of importance of priority by the score
from 1 to 10 weighting.
As discussed before, Vendor selection process is a complex and comprehensive decision
as all different of factors and criteria. Moreover, those factor and criteria are not just a
quantitative measurement, but sometime mostly of them are qualitative performance which could
not have enough data to support the scoring, so the judgement especially the qualitative
measurement should be done by industrial specialist.
Moreover, from a group of suppliers which has been selected from overall score, each
detail of attribute could be also get analysed and eventually the more less-capable vendors could
be filtered out and the Company could be more focus to consider to the rest of vendors’ offer
according to the RFQ.
3.2 Supplier RFQ and RFQ Analysis
Any new project / product request from customer has different requirement, for example
product specification and the complete schedule. Under different desire to the project, the
Company should discuss with customer so to get the right supplier to match with requirement.
Therefore, this process is analysing to customer’s requirement and also conducts the process to
turn the requirement into a set of date under analysis so as to match to the supplier in the
quantitative way.
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1. Once the RFQ has received, there is a brief interview to the Customer, which include to
the requirement to the nature of product, which includes,
a. Product Category (Product on the shelf / development project)
b. Requirement, those requirements are based on the basic KPI of the each different
project category so to get the right priority and expectation to the nature of
project. The interview included, for example,
b.i. Target offer price
b.ii. Delivery/Development time (To determine the possibility of JIT
management and the risk of delay shipment, and also finding out to the
right vendor, who are the most suitable capability and flexible supply to
order request)
b.iii. Preliminary product specification (High/low std to affect to the complexity
of production or development)
b.iv. Quality expectation ( default Company spec or higher affecting to the
overall costs)
2. Afterward, those requirements will be transverse into the form of weighting according to
the importance of those criteria. The weighting of each attribute is used for prioritize to
the target score for match capable supplier in term of the same attribute.
3. After that the overall rating of weight of attribute from RFQ would be calculated.
Moreover, an overall rating score of the RFQ would be calculated so this helps a
preliminary scanning to the matching process by a coarse filtering out to the
inappropriate supplier at the initial round.
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After analysis, supposedly the RFQ provided with a data could be ready to match with
right vendors from the vendor’s database. This could be selected the fifth best matched vendors
for further discussed and make with final decisions. Since the primary tier of vendor has selected
base on the matching similarity by score. The final decision will be more focus on the
companies’ situation which has not been considered during the primary selection. At this stage,
the final supplier selection would be manipulated by project team. Therefore, to consider the
variance to the scoring case by case, there should be a mechanism to match with most critical
characteristic fits with requirement. Compare to each RFQ, after the interview, there would be a
score should be getting the weighting by using with AHP analysis. As discussed, there are many
attributes influencing to the supplier’s capability. The decision will easy to get confused. Thus, it
is needed to identify a one way analysis tool to assist in decomposing, organizing and analyzing
all the matter in one way. Therefore, AHP is used as this solution methodology. AHP converts
the consideration matter into a hierarchical structure with several levels, such as goal, criteria and
sub-criteria.
Here below are the steps involved in AHP as below
3.4 Information Collection and Supplier Selection Flow
Supplier matching criteria
Owning the multiple attributes and parameter to decide which vendor(s) fit with
customer’s requirement on each project (RFQ). The scoring of each attribute should be changed
depends on different priority of characteristic requirement on each case of RFQ.
Design Field Investigation Procedure
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During the selection to outsource supplier, as discussed before section, there are some
criteria conditions which affecting to the performance of supplier.
Step 1: Recall to the attribute from 3.2, here are the comparisons of each attribute to define the
weighting of each attribute. For the attribute level
1 Business Perspective-Product and Manufacturing (PM)
2. Customer Perspective-Service level and schedule management (SL)
3. Innovation Perspective-Engineering and Innovation (EI)
4. Financial Perspective-Financial Healthiness and business relationship (FB)
Constructing to the table and scoring to each
Step 2: Formation of the pair wise comparison: Pair wise based on the interview to the customer
on the RFQ and also the project team discussion on the comparison among to the factor from 1 –
9 according to the Saaty’s scale as shown below table.
Importance
intensity
Preference judgement
1 Equally important
2 Moderately import
5 Strongly important
7 Extremely important
9 Extremely more important
2, 4, 6, 8 Intermediate values between adjacent scale
values
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Here comes below an example of pair wise comparison matrix of the setup four attributes.
PM SL EI FP
Product and Manufacturing (PM) 1 1.6
8
3.2
2
3.00
Service level and schedule management (SL) 0.5
9
1 3.7
6
3.94
Engineering and Innovation (EI) 0.3
1
0.2
7
1 0.54
Financial Healthiness and business relationship
(FB)
0.3
3
0.2
5
1.8
6
1
Moreover, according to the each attribute, each characteristic could be also calculated
from the same principle. A list of priority score has been definite and the Company could be seen
the priority of characteristic.
In addition, the items in the characteristic level has also provided with the weighting from 0 to 1,
so the overall weighting has done with below ratio.
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Chapter Four – Application Case Study
4.1 Case background
Based on the AHP model developed in the last chapter, this would be apply to the
Company – Company_S.
4.1.1. Company overview
Company_S (Company) is a Sourcing and Product Development company operating in
HK. The product source and procure to Company are primarily consumer electronic in areas.
Moreover, the company has awarded a contract to a customer of US government
organization as their one of the sourcing contractor for Asian for consumer electronic products.
The contractor has over 400 retail operations around the world.
Every year, the Customer offer a wish list to the Company for buying items, the Company would
support to sourcing the merchandise from either ready goods or goods needed to optimize to the
product specification meets with Customer quality requirement.
As mentioned, the Company is not the only sourcing agent for the Customer; thus, the Company
is also facing to the competition to their rivals in terms of price, product quality service and
marketing value to their merchandise. As the main productive capability of merchandise
supplying to Customer comes from Company’s suppliers/partners, the supplier management and
knowhow that would be the core competence to the Company. Maintaining of a group of
sustainable current suppliers which helps to Customer’s merchandise under a controllable cost,
quality and service etc.
Besides, it is also necessary to reserve another 2nd tier of supplier for the alternative
suppliers if any impact to the original vendor. As the supplier is not owned by the Company, any
unpredicted issue happened on the supplier sometimes it could not be manipulated by the
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Company. In the worst case, there should be a contingency plan to the supplier management to
be back up by another 2nd tier's vendor and as well.
Moreover, to increase the competitiveness and also business opportunities, the
Companies also need to expand to the product line up and more product category. Each year the
Company has to find out new vendors and evaluate their capability.
4.1.2. Current problem of Company_
1. Lack of sustainability relationship between outsourcing vendors.
According to the Company’s static, every year, almost 30% or above vendor discontinue
to the partnership relationship with Company after 2-3 years. After the interview to the
department’s and suppliers, most of the reason is that Company cannot fully evaluate to vendor’s
capability. Moreover, over optimistic on vendor’s performance and over-estimated to new
vendor’s capability returns to disappointed performance, for compensate to the unsatisfied
performance, the company could only pay back to the delay or over budget, or even give up the
project. Therefore, a comprehensive evaluation of supplier with all directional measurement is
necessary to understand the supplier’s capability.
2. Lack of tools for supplier performance evaluation
Though discuss above, there is a necessary to evaluation on suppliers, there is no explicit
qualitative and quantitative guideline or procedure to facilitate Company evaluation of new
vendors. Sometimes managers of the Company use their feeling and subjective experiences to
determine to the supplier, in which the decision sometime it is subjective and unilateral.
Sometimes, the condition of supplier selection will be simply relied on offer price, but the
final result of bringing out unsatisfied quality product and services which is out of the Company
expected. Though cost is a very critical factor to a project, but except the cost, many other factors
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affect to the project successful. Those factors should be case by case, and those factors should be
comprehensive to concern for all kinds of matter affecting to the supplier performance.
3 Lack of systematic and tools for suppliers data base
Supply chain management concerned by many factors to control on the As discussed by
De Felice and Petrillo [9], measurement of organizational performance is a complex issue given
that performance is a multifaceted phenomenon whose component elements may have distinct
managerial priorities and may even be mutually inconsistent. In detail, Tseng et al. [10] assert
that assessing a measure of sustainable supply chain management.
Through evaluating the case scenario it could be assessed that Analytic Balanced
Scorecard helps in analysing the analytical way so that different factors could be considered in
terms of measuring the success of firm in market. However, problem could be identified within 4
different perspective i.e. financial, customer, learning and development and internal process
perspective. Therefore, it could be assessed that current problem faced by company in relation to
internal process perspective. It means that through identifying the problem regarding relationship
with vendors which is inappropriate. Thus, it could be stated that Company S is not able to
maintain effective relationship with vendors but they are not able to maintain the same.
Therefore, problem could be identified in internal process perspective and thus it results in
improving the relationship with vendors and business. Thus, all the identified perspectives helps
in enhancing improvement in the business process so that issues faced by firm within its internal
process perspective could be assessed.
Also, it helps in evaluating the issue related to vendor as it found to be a costly process to
Company S. However, such process concerns to the different factory's requirement, examining of
supplier manufacturing process, factory audit, contract negotiation etc. Once it found that if the
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suppliers are not right to the target than internal process perspective could be assessed as the
waste of resource and this would affect to other resources. Further, there are around 30% of the
new vendor candidate would be failed to going on after the completion of evaluation. One of the
main reason behind this is that it helps in satisfying to the product development and thus it helps
in evaluating the capability of supplier. Another problem that could be identified is regarding
sustainability to those new vendors to which relationship could be maintained in regard to
improve vendor relationship for leverage them to increase their competitive advantage.
Data collection
It is the way through which information could be gathered. There are two methods i.e.
primary and secondary sources for collecting useful information. Here, primary information has
been obtained from given case study regarding selection of sustainable outsourcing supplier.
Hence, it results in obtaining responses from respondents regarding the selection of outsourcing
supplier. While, secondary analysis is also being done in regard to obtain information from
different books, journals, and online articles.
Sampling
Sampling is considered as the selection of small population from the whole universe is
termed as sampling. Here, random sampling technique is being selected that helps in selecting
the respondents on random basis. Through adopting such method respondents obtain equal
chances for getting selecting. Also, 100 number of respondents are being selected randomly in
regard to conduct the study and identify the selection of sustainable outsourcing supplier.
Data analysis
Further, it is another crucial research methodology tool that helps in analysing the data so
that desired results could be attained. Further, using thematic analysis helps in evaluating the
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responses in regard to analyse the themes and obtain proper results. Carrying out proper thematic
analysis helps in evaluating the responses given by respondents so that desired results could be
attained. Using such data analysis method helps in evaluating the responses in an effective way
and thus adopt effective results.
4.1.2
1. Preparation
1.1 Set business objectives
Here, main business objective is to find appropriate vendor that helps in selecting
sustainable outsourcing supplier and thus provide right quality products or services to clients. It
also helps company that customers are required to outsource the most optimum suppliers that
offers minimum cost products without trade off the quality. Thus, setting business objectives
helps in identifying the framework that results in selecting outsourcing supplier. Therefore,
identifying business objectives helps in improving the performance of firm in market and thus
results in overcoming the issues faced and thus goals could be attained. It is the first and
foremost step i.e. to set business objectives and thus it helps in adopting appropriate results that
aims to attain organizational goals.
1.2 Design questionnaire
Name:
Gender:
 Male
 Female
What are the considerations that should be made before outsourcing?
 Price
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 Quality
 Quantity
Do you agree that selection of right outsourcing partner is crucial task for organization?
 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly disagree
From below select the main option that helps businesses in selecting right outsourcing partner-
 Delivering good quality services
 Selection of right suppliers
 Overcoming poor quality of design
 Others if any
How important is outsourcing suppliers for any firm?
 Very important
 Important
 Just equal
 Unimportant
 Substantially unimportant
Who are the key individual who should be involved in making decision for outsourcing?
 Top managers
 Employees
 Customers
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 Both top managers and employees
Which of the following method is suitable for evaluation and analysis of right company fit to
customers requirement?
 Balance Score card framework
 Analytic hierarchy process
 Both of the above
1.3 Extract information
Theme 1: Considerations that should be made before outsourcing
In accordance with the above, findings, it can be stated that different people have diverse
set of perception. From the analysis made, it can be stated that majority of respondents think that
major consideration should be made on quality as it enables to make sure that more and more
customers are satisfied. More specifically, there are 43 of the individuals who think that quality
should be considered. Further, there are 32 of the respondents who think that price should be
considered. Lastly, there are about 25 of the respondents who are focused on quantity.
Theme 2: Selection of right outsourcing partner is crucial task for organization.
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Strongly disagree
Disagree
Neutral
Agree
Strongly disagree
Illustration 1: Theme 2
It could be evaluated that selection of right outsourcing partner is crucial task for business
as it helps in improving the performance of firm in market. There are 34 respondents out of 100
who assesses that selection of right outsourcing partner is crucial and thus it helps business to
adopt effective practices of selecting significant outsourcing partner. While, there are 2
respondents who are at neutral position and thus they neither say yes nor say no to the statement.
Further, there are 64 respondents out of 100 who assesses that they strongly agree to the fact that
selection of right outsourcing partner is crucial task for firm. Thus, it could be assessed that
majority of the respondents agrees to the fact that selection of right outsourcing partner is crucial
task for firm and thus it helps in attaining desired targets.
Theme 3: Delivering good quality service is the main option that helps businesses in selecting
right outsourcing partner.
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Delivering good quality services
Overcoming poor quality of design
0
5
10
15
20
25
30
35
40
45
Column B
Illustration 2: Theme 3
It can be evaluated that it is essential for businesses to select right outsourcing partner
that helps in improving the performance of firm in market. There are 40 respondents out of 100
who says that majority of the respondents assesses in delivering good quality services in regard
to satisfy the needs of customers. While, there are 22 respondents who helps in selecting right
suppliers so that desired results could be attained. While, there are 18 respondents who says that
overcoming poor quality of design helps businesses in selecting right outsourcing partner.
Further, there are 20 respondents who assesses that there are several other methods as well apart
from the mentioned one. Thus, it could be stated that majority of the respondents assess that
delivering good quality of services results in selecting right outsourcing partner.
Theme 4: Outsourcing suppliers for any firm is very important.
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Very important
Just equal
Substantially unimportant
0
5
10
15
20
25
30
35
40
45
50
Column B
Illustration 3: Theme 4
It could be assessed that there are 64 respondents out of 100 stated that it is very
important for businesses to outsourcing suppliers for any firm. Further, there is 1 respondent who
stays at just equal and says that outsourcing supplier for any firm. Also, there are 35 respondents
who says that it is unimportant when outsourcing suppliers for any firm. Therefore, it is assessed
that majority of the respondents says that it is significant for outsourcing suppliers for any firm.
Therefore, it is crucial for firm to adopt effective strategies in regard to assess outsourcing
suppliers for any business.
Theme 5: The key individual who should be involved in making decision for outsourcing.
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From the analysis made, it can be stated that there are different type of considerations that
should be made by individuals so that decisions related with outsourcing can be taken. In this
context, analysis shows that both employees and top management should be involved in decision
making for outsourcing. When the more people are involved in decision making then the rate of
issues identification will be high but the time that will be consumed is high. More specifically,
there are about 56 of the respondents who think that top management and employees should be
involved. Further, there are 12 of the individuals who think that customers should be involved.
Theme 6: Both method is suitable for evaluation and analysis of right company fit to customers
requirement.
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Balance Score card framework
Analytic hierarchy process
Both of the above
0
10
20
30
40
50
60
70
Column B
Illustration 4: Theme 6
It could be assessed that there are 18 respondents that says that Balance Scorecard
framework is suitable for evaluation and analysis of right company fit to customers requirements.
While, there are 22 respondents who says that Analysis hierarchy process is crucial approach and
thus it helps in analysing the right company fit to customers requirement. On the other hand,
there are majority of the respondents i.e. 60 who says that both of the above method are suitable
and thus it helps in evaluation and analysis of right company fit to customers requirement. Thus,
it could be assessed that adopting both these methods are suitable for evaluation and analysis in
regard to choose the right company that is fit for customers requirement.
1.4 Attain other information on the macro environment
It is significant to obtain various information upon macro environment and thus it helps
in improving the performance of firm in market. With the help of adopting such method business
focuses upon carrying out desired targets and thus overcome issues related to macro
environment. Thus, evaluating the performance it results in improving business performance and
thus achieve set targets (Galankashi, Moazzami and Helmi, 2013). Macro environment helps in
proving suitable for firm as it helps them to carry out such analysis and thus results in improving
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their performance so that desired targets could be attained. Hence, at the preparation stage it
results in obtaining crucial information on the macro environment so that appropriate
information could be achieved.
2. Analysis
2.1 Use PESTEL analysis of Company S
Following is the PESTEL analysis for Company S-
 Political- It could be assessed that level of corporate tax and consumer taxation regulated
by political authorities of any country that affects corporation tax. Therefore, it is
essential for supply chain company to assess different characteristics that are regulated by
government and thus affects the structure of company.
 Economic- Further, it identifies that economic growth of individual helps in influencing
businesses such as carrying out rapid growth in order to enhance the standard of living
and high employment rate (Min, 2010). Thus, main result of this is assessing consumers
disposable income that increases and it helps in raising their purchasing power. There are
other factors as well that affects the business such as cost of labor, inflation rate and
market trends which need to be closely observed in regard to make strategic decisions.
 Social- It helps in assessing that social factors involves changes in demographic factors
such as age, income, family size etc. of individuals living in different countries. Thus,
such change affects the needs and wants of consumers and therefore supply chain
businesses are required to understand the trends and consumer behaviour before
delivering product to them.
 Technological- It assesses that emergence of technology particularly popular helps in
improving the same so that enhancement in technical aspects would result in improving
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the performance of firm. Therefore, it is essential for firm to undertake effective
technological improvements that helps in providing enormous selling opportunities for
supply chain management so that desired results could be attained.
 Environment- It is significant for firm to identify the environmental and develop
appropriate rules and regulations related to environment so that it does not affect the
same while carrying out supply chain (Aymen, Lassaad and Mishra, 2013). It is essential
for business to not affect the environment and follow appropriate rules and regulations so
that success could be attained.
 Legal- It is essential for firm to follow appropriate rules and regulations and not impact
upon the operations of supply chain firm. Therefore, proper legislative requirements need
to be followed such as providing proper health and safety to employees as it does not
impact upon their health at the time of working within firm.
2.2 Competitive analysis
There are different type of firms that deliver their customers with similar set of products
and services. It is important to make sure that proper competitor's analysis made so that the rate
of performance can be raised. With time there are changes that take place in the strategies and so
firm needs to understand the changes that take place in market so that they will be able to
achieve their desired goals and objectives. Clients tent to make use of the services that are
delivered by other due to number of factors (Bai, Li and Guo, 2010). In this context, one of the
main reason is pricing. This can be determined to be one of the main causes due to which people
develop their perception. The type of services of the products they get is low, then will prefer to
make their purchases. On the other hand, when the rate of price given is high, then it becomes
favourable enough to make affect the purchasing behaviour of individuals. For example, when
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there are two of the companies that deliver similar products or services, in case the price that is
kept by a firm is low when compared with other, then people will prefer to purchase those.
However, there are also consideration that is made b people in which they also make sure that the
quality of the product. In case the quality is low but the price is high, then there will not make
purchases.
a. Majority of the outsourcing products are made in China. With time there are changes that take
place in technology. With this respect, China come up with new innovations through which they
get to satisfy their customers requirements. Further, there are three different aspects that are
considered. With this respect, it includes quality, pricing and services (Alireza, Mohammadreza
and Noor, 2013). Main aim of any firm to gain maximum profit, this is only possible when they
will be able to understand their customers and deliver them services accordingly. Employees are
the facer of organization as they have direct interaction with customers, they are the one who
deliver their products and services to customers. When employees do not have proper
understanding for the type of roles and responsibilities that has to be made, then it becomes
difficult for them to satisfy service users. All these factors high affects the customer's
requirement and purchase behaviour. In order to be competitive, it is important that firm consider
the quality, cost, and services that are delivered. When these are not considered, then it has
negative impact over the business and they fail to achieve their requirements.
b. Domestic importers are also benefits but there are conditions in which business fails to
develop relations. In this context, it includes reasons like price or quality of products. There are
different set of benefits that included in this and they are reserve of stock that is required
(Coşkun, Polat and Kara, 2015). When the stock is imported, then the amount of time that is
64

takes is high but it becomes favourable enough to make sure that all the requirements are
fulfilled.
In order to make proper analysis of the competition, then it is possible with the help of
Porter's five force and it is as follows:
This is an effective tool that is helpful enough to know the competitiveness of the
business environment. There are five different aspects that are considered and they are given
below:
Competitive rivalry: This determines the strength and number of competitors. With this
respect, the number of competition at China for Company S is high. There are firm that deliver
customers with similar set of products and services. With the help of aggressive pricing or
through effective marketing campaigns, it becomes helpful to raise customer base.
Suppliers power: When the rate of suppliers is low, then the price can be raised by
suppliers (Sarkkinen and Yli-Moijala, 2012). In accordance with the present scenario, the rate of
suppliers power is high and so that firm has better options to get raw materials.
Buyers power: The rate of services or the products that are developed can easily be
purchases by customers. In order words, the rate of buying power of customers is high.
Threats of substitution: It is the way through which people get other options to get the
product. The rate of threat for substitute product is also high.
Threat of New entry: The rate of threat who enter into the market is high. The problems
that are faced by individuals low in order to enter the market.
2.3 Internal context
2.3.1 Tangible resources
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With in an organization, in order to make proper analysis of the internal aspect, then it
requires one of identify the tangible and intangible resources of Company_S. With this respect,
the employees within the cited firm are highly skilled and experienced. This is effective enough
to achieve the organizational goals and objectives. Further, the team that works for quality is also
effective enough to raise the performance level (Kara, 2013). Moreover, majority of decision are
taken by top management and in Company_S they understand the type of issues that are faced by
them. As per the findings, proper steps that the problems that are faced can be solved.
2.3.2 Intangible resources
The rate of vendor's are high for cited firm and the customers make use of the products
and services for the companies which understand their requirement and satisfy them. The
relationship of cited firm with their customers is high and it is a type of benefit that firms gets.
2.4 Value chain analysis of Company_S
2.4.1 Operational efficiency
There are different department that work together within an aim at achieving the goals
and objectives. Cited firm make use of ERP system that is helpful to make sure that there is
proper planning made so that business is properly maintained. Each any every department need
to perform tehir set of roles in effective manner. For this purpose, it requires to develop proper
planning so that the goals and objectives can be achieved.
2.4.2 Impacts on sourcing activity
For sourcing activities, there are different type of factors that affects. In this context it
includes price and the quality in which it is delivered. Further, there are certain set of confidence
level that is maintained by vendors and firm (Kumaraswamy, Ofori and Wong, 2010). It is
essential to make sure that it is properly maintained so that the rate of performance can be raised.
66

2.4.3 Customers order quantity
The trust that is developed by firm should be high so that the rate of performance can be
raised. There are certain set of expectations that are required to be maintained by the firm for
customers. When these are not done, then customers develop negative perception with in the
mind of customers.
SWOT analysis:
Strengths
 High quality services provided by firm.
 An enterprise boosts incredible number
of clients because of its products. Company's growth is rapidly growing
faster.
Weaknesses
 Not a proper management at firm.
 Weak in innovation.
 Transportation channels are limited.
Opportunities
 Domestic sale rises consumer demands
in electronics.
 Manufacturing contract is maximizing. The firm is participating in the global
markets.
Threats
 Reach of products and services are
limited.
 Infrastructure and manpower costs are
rising.
 Competition with Japan, Europe etc.
3. Strategic definition
3.1 Business strategy
This can be determined to as the ways through which the set of objectives are attained by
the business. In order to words, these are the long term business plan and takes up to 3 to 5 years
time to complete it.
3.2 Evaluation strategy
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It is the final phrase for management of strategies. Significance lies when there is proper
coordination make for the task that are performed by groups, managers, departments, etc.
3.3 Sustainability strategy
This focus on identifying the gap that due to which the performance get negatively
affected. It focuses on determining the risk, and aim at developing strategies through which goals
can be achieved.
4. Implementation
4.1.1 Formulation of strategy
Strategy evaluation: This is a type of plan that enables to attain specific objectives and
goals. It is highly beneficial for the business to grow. Company_S get to make sure that they
improve the areas through strategic planning and satisfy their customers. It is highly beneficial
for the business to know the value that is created is in accordance with the cost (Nazari,
Vandadian and Abdirad, 2016). Further, it determines the areas in which improvement need to be
made so that better quality services can be delivered. Further, there are condition in which
workers fail to perform with their full efficiency. In such condition strategic planning is helpful
to make sure that goals are set so that they will be able to achieve them.
In order to make develop strategic planning, there are different type of techniques that are
available. For these purposes, it requires proper measurement of the performance so that the rate
of issues that are faced by firm can be reduced. Further, it is essential to consider that the
evaluation made provides valuable result. It includes internal forces in which strategies are
developed for identifying the internal factors that has negative impact over the business. This can
be with respect to lack of employees performance, low quality, etc. Further, external forces
includes that problems that has inverse impact of the business. Only strategies are developed that
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will help in minimising the issues. In addition to this, it includes correcting performance, with
the help of proper monitoring, it contains analysis of the areas in whci the business is lacking.
Adequate steps are taken with the help of strategic planning through which the determined goals
and objectives are achieved (Ameyaw, Hu and Le, 2016). There are companies that deliver their
customers with similar products and services. Strategic planning enables to develop innovations
through which one get to understand the requirement of customers and plans are developed that
will help in raising satisfaction level. With time there are many changes that are take place in
taste and preference of customers. With the help of strategic planning, it enables to understand
the requirement of customers and make changes in the products and services as per their
requirements.
In order to formulate of strategies, there are different set of steps that are involved and
they are as follows:
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Illustration 5: Strategy Evaluation

Setting organization's objectives: Objectives needs to be developed so that path can be
developed on which it can be achieved. Further, all the individuals who are involved within the
performance of business need to be conveyed about the objectives so that they will be able to put
on their full efficiency.
Evaluation of environment: This enables to determine the stability of the business. There
are firms that deliver similar set of products and services. It is essential to consider economic
condition of the business so that the finance that is required can be derived. For each of the
activities that has to be developed incurs certain set of cost (Shaul and Tauber, 2010). It is
essential that proper plan are made so that all the activities that are developed for strategic
planning can be completed.
Setting quantitative targets: Cited firm should et up quantitative target values as per this
step and this should be done as per the type of objectives that are being developed through
strategic planning. This is done in order to compare long term comparison with customers. This
enables to determine the contribution that is made by each of the product.
Developing divisional plan: There are different type of departments that work together
with an aim to complete the activities that are being develop. For each of the activities, it
contains proper planning in which the work is divided so that within speculated time period, it
can be completed. Key individuals should be identified and they need to proper conveyed with
the roles that has to performed by them.
Performance analysis: This is done in order to identify the gap that has raised while
taking the plan into action (Lavretsky, 2014). Further, the performance that is made by the
Company_S should be made as it will help to know the areas in which improvement is required.
This way strategies will help to improve the quality of performance within the firm.
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Selecting strategy: There are different type of issues that are being faced among all these,
management need to select one of the main issue and take appropriate steps through which it can
be solved. For single problem, appropriate steps should be taken and when it is solved, then
consideration should be made for other set of problems.
4.2.2. Analytical hierarchy process+ BSC evaluation implementation
Balance scorecard
It can be considered as the strategic framework which will help the organization in four
different perspectives. One is from financial point of view, this will be to generate profit. Second
is from the safety of consumers. Third is the internal processes which are used in delivering the
values. The last one is Learning and growth, this includes people, tool and information which is
necessary (Galankashi, Moazzami and Helmi, 2013). The balance score card is more than just an
operational measurement system. Some of the innovative and large organizations are using this
to develop their strategic management system, so that the can maintain long term sustainability
in the market.
This will be helpful in clarifying the strategy and vision of the organization. It will be
used in setting up the financial goals and the strategy used in achieving those goals. Secondly
this will communicate and link the strategy in such a way that the targets set by the company in
short duration of time. The balance score card will fill the gap or void which exist in most of the
organization's framework.
Implementation of BSC
The implementation can be done in five easy steps.
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 Step 1: First of all, the research has been done about all the terms like what is BSC and
what are the strategy have to be followed, what are the business objectives set by the
company (Process of Balance scorecard, 2015). Some will say that it is similar to KPI.
But KPI is the measurement tool which will not tell about the major points where the
organization has to give more focus.
 Step 2: The main goal of the company is to understand the culture shift. This means that
the employees must see their job in the context of the company. This step will be helpful
in understanding the results which are expected to be achieved.
 Step 3: After knowing BSC, the company have to focus on the proper strategy to be used
and a brief discussion is being held about the selection of strategy (Min, 2010). The best
way to build any kind of successful strategy is to include all the business units and
employees of the organization. After that starts the discussion about the strategy.
 Step 4: After selecting the best suited strategy, the company have to add all the KPI and
actions plans. This will give freedom to the employees in the participation of the action
plans.
 Step 5: Finally, the organization have to make sure that culture shift was made. They
have to wait for the final decision and after that the shift has to be implemented.
72
Illustration 6: Balance Scorecard Process
(Source: Process of Balance scorecard, 2015)

From the above, given illustration, it becomes helpful enough to make sure that proper
measurement is done with the help of which performance of the employees or any other
department can be made. This help to list out the issues or the gap that are identified and
appropriate steps can be taken with the help of which proper measurement can be made.
Analytical hierarchy process (AHP)
This can be determined to be the techniques that enables to analyse and organize complex
decisions. It was developed in the year 1970s by Thomas L. Saaty. In order words, there are
particular application in order to make decision making. It is a type of application that is widely
used and it helps to consider different type of decision for various situations, decisions can be
made. There are situations in which decision needs to be made so that the rate of performance
can be raised. This can be determined to be the process with the help of which decisions are
made. It is important for the firm to understand the type of issues that are being faced. As per the
findings proper steps should be taken (Aymen, Lassaad and Mishra, 2013). There is a proper
process that is being followed in order to make decision. There is a systematic process that is
being followed in AHP. With this respect, below given are the process for decision making:
Studying the situation: In order to make decision, it is important to make sure that the
situation is analysed. This is effective enough to list out the different alternative ways with the
help of which decision can be made.
Organising multiple criteria: Different people have diverse set of perception and as per
the type of understanding they have decision are taken. However, when there are many people
involved, then it becomes helpful enough to get appropriate outcome for the same (Bai, Li and
Guo, 2010). When a group of people are involved in decision making, then as per the type of
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perception that they have over the situation the decision will be taken. In this step all the
alternative decision that can be taken are listed down.
Assessing multiple criteria: All the alternative strategies that are developed and properly
assessed. This enables to come up with appropriate outcome through which decisions can be
taken.
Ranking alternatives: When any type of decision are taken, then it has both positive and
negative efforts. Proper ranking is done so that best alternative decision made can be selected.
Implementation: Among all the decisions taken, management will make use of the
decision that has minimum negative impact and high efficiency for overcoming the problem.
4.3 3. Process of performance monitoring to active vendors
Vendor can be determined to be a part of supply chain, it can be company or individual
who sells services or goods to others who are involved in economic production chain (Alireza,
Mohammadreza and Noor, 2013). They are helpful enough to get proper materials that are
required for providing finished good to customers. Company_S have many vendors from whom
they are able to get required materials. It is important for the firm to develop strong relationship
with their vendors so that they will be able to get their required materials on time and finished
goods can be delivered to ultimate customers as per the demand.
There are different type of vendors who are responsible to deliver firms with proper
supply of materials as per their requirement. Below given are few types of suppliers:
Manufacturer and vendors: These are the type of companies that develop, research and
produce finished products that are ready for purchase. They can be determined to be the source
for value chain that provide finished goods to customers.
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Distributors and wholesaler: They are the one who make purchase sin bulk from other
vendors. They are able to provide customers products at lower price. When single set of products
are purchased is always high when compared with the products that are purchased in bulk.
Affiliate merchants: This is a type of supplier who is willing to drive traffic to their
website for the sale that is made. Further, this is done by banner of links and ads that are
delivered throughout a network of affiliates.
Many different type of steps can be determined through which performance of vendor
can be measured. With this respect, below given are some the ways:
Quality of product: There are many vendors that deliver their clients with similar set of
products (Coşkun, Polat and Kara, 2015). Measurement of vendors can be made with the help of
quality that are delivered by the business. When quality delivered is not up to the standards that
are being set, then it has negative impact over the perception of customers.
Aligning performance goals: For a firm, it is important to determine the type of strategy
that are followed by the vendor in delivering of products. Further, there are strategies that are
applied by the organization in order to achieve their develop goals and objectives. Measurement
of performance of vendors can be done as per the type of strategies that are developed by them to
deliver their materials to firm. When the performance of goals that are expected to be achieved
are not met, then it can be stated that the rate of performance is not effective.
Developing information collection method: It is important for the firm to get proper
information about the type of coverage that vendor has. In this context, questionnaire can be
made used and this way the type of challenges that are faced by each of the business can be
determined (Sarkkinen and Yli-Moijala, 2012). Perception of individuals can be identified for the
services that are delivered by the vendors. This way organization gets to know the issues that are
75

faced by them due to which they fail to get their materials reach the firm. This is considered to be
effective way through which vendors performance can be measured.
Design a robust assessment system: It is essential for the organization to choose
appropriate approach in order to evaluate suppliers. With this respect, below given are the
approaches that can be included:
 Firm can make use of third party standards like ISO 9001. This is helpful to know
effective manufacturing practices.
 Against industrial leaders, benchmarking can be used.
 Scorecard based system can be used and it can also make use of KPIs.
 Firm can be develop their own evaluation or certification with the help of which
measurement id possible of vendors (How to give a Quality Score to your Supplier,
2014).
Among all these, organization like Company_S can made of any type of approach that
will enable to make proper measurement of the performance of vendors.
76
Illustration 7: Supply quality score
(Source: How to give a Quality Score to your Supplier, 2014)

As per the above, given illustration, there are four different type of aspects that can be
considered through which measurement of vendors performance can be made. In this context, it
includes product quality, cost, delivery and responsiveness. All these will enable to know the
level of performance with respect to quality or cost that are made. When all these points are
considered, then it becomes helpful enough to make proper evaluation of the performance.
4.4 4. Performance improvement and relationship sustainability improvement
In order to improve the performance, it is important to make proper consideration of
different type of issues that are being faced by the firm. Proper analysis should be made so that
all the problems can be identified. Among all these employees are one of the important sources
that enables to make sure that all the changes in within the firm can be made effectively and
efficiently. It is important to have proper monitoring of employees so that all the issues that are
face by them can be identified (Kara, 2013). This is effective enough to arrange proper training
and develop so that the rate of performance can be raised. In order to perform any type f roles it
is essential to certain set of skills or capabilities. When training is provided, then it becomes
helpful for the employees to develop skills as per requirement. There are also issues identified in
which workers fail to perform effectively due to lack of understanding towards the roles and
responsibilities that has to be performed. However, through training it is helpful to perform the
rate of performance and to enhance the performance level. Further, the rate of performance can
be identified when customers do not get satisfied. Ultimate aim of any firm to gain maximum
profit. This is only possible when they are able to understand their customers and deliver them
services accordingly (The business of Sustainability, 2016). Feedback should be considered that
are given by customers so that they will be able to make improvements in the products or type of
77

services which are delivered. When these steps are followed, then it becomes favourable enough
to have sustainability improvement.
To develop sustainable relationship, it important to make sure that management listens to
all the issues that are faced by workers in the organization. When one is able to listen to all the
requirements, then they are able to understand both verbal and non verbal messages. When there
is proper listening, then it is helpful enough to reduce the rate of confusion that are raised among
team members (Kumaraswamy, Ofori and Wong, 2010). Further, it is important to have proper
trust developed among employees so that they will be able to make sure that all the tasks that are
provided to them are performed effectively and efficiently. This is effective enough to develop
trust among the workers so that healthy environment can be developed in which they will make
use of their full efficiency.
78
Illustration 8: Sustainability
(Source: The business of Sustainability, 2016)

As per the above, illustration, there are three different areas in which proper
consideration is to be made. In this context, it includes growth, risk and return on capital. There
are list of changes that are identified by the management in the organization and these are
identified by the risk that are taken. As per the taken risk, it is important to make proper analysis
of the growth that has occurred and with growth the rate of returns also gets affected. This is an
effective way with the help of which sustainability relationship is developed within the
organization. Each of the key areas are determined by other elements. When these are
considered, then it becomes helpful to make proper evaluation of the performance that is made
by the business. In this context, it includes innovation and new products, reaching new customers
and markets and composition of business portfolio (Nazari, Vandadian and Abdirad, 2016). All
these fall under growth. The business get highly benefited when management considers all these
elements with respect to growth. Returns of the capital contains elements like green sales and
marketing, sustainable value chains and sustainable operations. In addition to this, risk
management contains regulatory management, reputation management and operational risk
management.
79

CHAPTER 5 : Results and discussion
5.1 Measure Company_S performance using balance scorecard
5.1.1 Financial indicator
With the help of balance scorecard, it enables to identify whether firm is able to achieve
their desired goals and objectives with respect to finance. Within an organization, there are
certain set of financial goals that are developed. These are done in order to raise their sales and
profitability. As per the balance scorecard, business develops certain objectives for which they
develop strategies through which the rate of performance can be improved. With this respect, one
of the effective strategy for raising financial condition is with the help of reducing wastage. In all
the business operation it includes certain set of wastage that is caused by the business and when
it is required, then it is helpful to raise financial support. Another set of ways that can be applied
by delivering high quality services with low price (Ameyaw, Hu and Le, 2016). Quality and
price can be determined to be effective form of business that enables to attract more and more
customers. Further, there are changes that take place within the organization and for each of
them it is important to have proper financial support so that they will be able to alter the changes
that are required within the business. The objectives that are set by Company_S is to raise their
sales and profitability by 10%. This can be attained effectively when the rate of wastage can be
reduced.
5.1.2 Assessing the competition level from customer’s perspective
a. A customer tent to make use of the services when it is able to satisfy them. There are certain
expectations that are expected by individuals when purchase decisions are made. With this
respect, it is important to make sure that business need to understand the type of issues that are
faced by service users. As per the findings, they need to make changes in the products and
80

services so that the rate of satisfaction can be raised. Another set of strategy that is effective
enough to develop product as per customer's requirement is with the help of conducting market
research. Different people have diverse set of perception and they all will be facing different type
of requirement or problems (Shaul and Tauber, 2010). In this context, through market research, it
will be effective enough to know the areas in which improvement is required. This way the rate
of performance can be raised and the confidence level that customers have will also be raised.
Further, the type of quality that is provided by the firm is also effective to develop confidence
level among customers. Further, there are different type of promotional techniques that can be
followed by the firm like free gifts, discount offers, etc. These are type of strategies that enables
to positive perception within the mind of people. Thus, people will tent to make use of the
services and the products that are delivered by the organization.
b. Balance scorecard is a helpful tool that enables to make proper measurement of the services
that are delivered by the business to customers. The areas in which improvement needs to be
made are identified. There are provision given in which customers can provide complain for the
type of issues that are faced by them. It is essential to make sure that proper analysis is made so
that they will be able to make proper analysis of the problems that are faced by them. The firm
tent to earn profit when they are able to understand their customers and deliver them with high
quality services. It is essential to make sure that management consider the complains that are
given by customers and changes are made (Lavretsky, 2014). This is helpful to develop positive
perception within the mind of service users. With the help of complaints, it enables to determine
the areas in which improvement needs to be made so that the rate of performance can be
improved.
81

c. There are vendors that are helpful enough to make sure that all the products that are developed
are delivered to customers. It is essential to consider that quality and price of the products should
be determined. Balance scorecard can be properly analysed to know the quality that delivered by
the business. It is important for the vendors to select appropriate pricing strategy so that they will
be able to develop positive perception within the mind of customers. Another set of
consideration that has to be made is with respect to the quality of services or the products that are
delivered. There are companies that deliver their customers with similar products and services.
When there are any change in the products with respect to price or quality, then it has negative
impact over the business (Galankashi, Moazzami and Helmi, 2013). Customers will shift to other
products that are provided to them with high quality and low price. It is the responsibility of firm
to make sure that they maintain the quality of services that are delivered to customers. In this
context, business need to make proper evaluation so that they understand the requirement of
customers and services are delivered as per the requirement and need of the service users. In
addition to this, quality of the product should be maintained and this is analysed with the rate of
satisfaction level that are attained by the customers.
d. Learning and develop within the business is developed when there is proper monitoring made
for the performance of workers. This is effective enough to identify the issues that are faced by
workers with respect to roles that are performed by employees. Further, it is identified that there
are different reasons due to which employees leave the firm. Some of the reasons includes lack
of understanding for roles and responsibilities, lack of training and development, lack of interest,
etc. It is important the firm like Company_S to understand the issues that are faced by employees
and appropriate steps are taken so that the rate of employees leaving can be reduced.
e. In order to know the vendor's perspective, below given are the questionnaire designed:
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Name: ________
Age: ________
Gender: ___________
1. Are you able to deliver high quality services to your customers?
Yes
No
Not sure
2. Do you think price of the materials changes the buying behaviour of customers?
Yes
No
Not sure
3. Are you satisfied with the type of services which are delivered to customers?
Strongly satisfied
Satisfied
Neutral
Dissatisfied
Strongly dissatisfied
4. Do you think that performance can be raised with the help of skilled workers?
Yes
No
Not sure
5. Do you think that by maintaining the quality of services, sustainable development can be
made?
83

Yes
No
Not sure
6. Do yo agree that by involving employees in decision making will enable to take valuable
decisions?
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
7. Do you think that dissatisfied workers are able to contribute effectively towards the growth of
the firm?
Yes
No
Not sure
8. According to you what are the main factors that are considered by customers to purchase
materials?
Price
Quality
Delivery on time
9. Is the rate of employees leaving high within your organization?
Yes
No
84

Not sure
10. What is the main reason due to which workers leave the firm?
Work load
Lack of interest
Demotivation
Lack of understanding towards the role and responsibilities
As per the above conducted findings, there are about 10 of the employees who are taken
into consideration and they are helpful enough to provide adequate information. In this context,
it is identified that there are different set of perspective that are carried out of employees and
they are as follows:
Theme 1: Delivering high quality services to customers.
Are you able to deliver high quality services to your customers? Frequency
Yes 3
No 5
Not sure 2
85

Description: As er the analysis made, it can be stated that majority of the individuals
think that the quality of services which are delivered are not effective. In this context, it is
important for the firm to make sure that rate of quality is raised.
Theme 2: Price of the materials changes the buying behaviour of customers
Do you think price of the materials changes the buying behaviour of
customers?
Frequency
Yes 6
No 3
Not sure 1
86
3
5
2
Yes
No
Not sure

Description: Price plays vital role in changing customers behaviour. It is important for
the business to make sure that they make use of effective pricing strategies in which people get
to make use of the service.
Theme 3: Satisfied with the type of services which are delivered to customers
Are you satisfied with the type of services which are delivered to customers? Frequency
Strongly satisfied 1
Satisfied 2
Neutral 0
Dissatisfied 5
Strongly dissatisfied 2
87
Yes No Not sure
0
1
2
3
4
5
6
7
6
3
1
Frequency

Description: Majority of the employees are not satisfied with the type of services that are
being delivered by the business. For this respect, all the type of issues that are being faced should
be identified and proper steps should be taken.
Theme 4: Performance can be raised with the help of skilled workers
Do you think that performance can be raised with the help of skilled
workers?
Frequency
Yes 6
No 3
Not sure 1
88
Strongly satisfied
Satisfied
Neutral
Dissatisfied
Strongly dissatisfied
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
1
2
0
5
2 Frequency

Description: The type of process that are delivered by the business needs to be performed
in effective manner. It is important for the business top high employees who have skills that will
support the business achieve their goals and objectives.
Theme 5: Maintaining the quality of services, sustainable development can be made
Do you think that by maintaining the quality of services, sustainable
development can be made?
Frequency
Yes 7
No 2
Not sure 1
89
Yes
No
Not sure
0 1 2 3 4 5 6
6
3
1
Frequency

Description: People prefer to make use of the services that are delivered to them at high
quality. In this context, it is important for the business to consider the quality and to maintain it.
As per the data majority of individuals think that by maintaining quality, firm will be able to
maintain sustainability.
Theme 6: Involving employees in decision making will enable to take valuable decisions
Do yo agree that by involving employees in decision making will enable to
take valuable decisions?
Frequency
Strongly Agree 2
Agree 4
Neutral 0
Disagree 3
90
Yes No Not sure
0
1
2
3
4
5
6
7
Frequency

Strongly disagree 1
Description: Employees have direct interaction with customers and so they are able to
identify the issues or the problems that are faced by them. In this context, they are able to
provide proper information for the type of step through which decision can be taken.
Theme 7: Dissatisfied workers are able to contribute effectively towards the growth of the
firm
Do you think that dissatisfied workers are able to contribute effectively
towards the growth of the firm?
Frequency
Yes 3
No 6
91
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
0 0.5 1 1.5 2 2.5 3 3.5 4
2
4
0
3
1
Frequency

Not sure 1
Description: When customers are dissatisfied, then it becomes difficult for the business
to perform effectively and efficiently. In this context, it is important for the business to make
proper evaluation of the problems that are faced by workers. Accordingly, steps should be taken
with the help of which employees can be motivated.
Theme 8: Main factors that are considered by customers to purchase materials
According to you what are the main factors that are considered by
customers to purchase materials?
Frequency
Price 2
Quality 5
92
Yes No Not sure
0
1
2
3
4
5
6
Frequency

Delivery on time 3
Description: There are different factors that are considered by workers and among all
those as per the findings, it can be stated that the main factor that affects services is the quality
that is delivered by the firm.
Theme 9: Rate of employees leaving high within your organization
Is the rate of employees leaving high within your organization? Frequency
Yes 6
No 3
Not sure 1
93
Price Quality Delivery on time
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Frequency

Description: The rate of workers who leave the firm is high. There are different type of
reasons that can be identified. Different people have diverse set of perception and it high affects
the interest that they have within the firm.
Theme 10: The main reason due to which workers leave the firm
What is the main reason due to which workers leave the firm? Frequency
Work load 5
Lack of interest 2
Demotivation 1
Lack of understanding towards the role and responsibilities 2
94
Yes
No
Not sure
0 1 2 3 4 5 6
Frequency

Description: From the above conducted findings, it can be stated that the main reason due
to which workers leave the firm is work load that is given. The amount of load is high due to
which it becomes difficult for the business to grow.
95
5
2
1
2
Work load
Lack of interest
Demotivation
Lack of understanding towards
the role and responsibilities

CHAPTER 6: CONCLUSION
6.1 Overall project done
As per the above conducted research, it can be stated that outsourcing is an effective
aspect that enables the business to grow. It is important for the firm to develop strong
relationship with their vendors so that they deliver the product on time and demand can be met of
customers. Further, there are different companies that are deliver customers with similar set of
products and services. It is important to makes sure that firm understand their requirement and
select appropriate vendors that will be support to achieve their goals and objectives. Further, it is
important for the business to understand the type of issues that are faced by employees. As per
the findings, made steps should be considered that will help to make sure that workers make use
of their full potential. When the price and the quality on which vendors deliver their materials is
effective, then it is favourable enough to develop strong customer base.
6.2 Achievement of the project
As per the achievement of the project, it can be stated that purchasing behaviour of
customers get affected when price of the material is higher than what is being taken by other
firms. It is important for the business to make sure that they select vendors who will be able to
provide low price products.
When a product is delivered to customers, then it includes different type of cost. In this
context, one of the price that is incurred is with respect to labour cost. When the cost of labour
are reduced, then overall cost that is incurred can be reduced.
Before selecting the vendors, it is essential that there is proper analysis made so that they
will be able to know the areas in which they lack. Among all the suppliers that should be selected
96

that deliver them high quality with low price and is able to support the firm in achieving their
objectives.
Employees should have proper understanding for the type of roles and responsibilities
that has to be played by them. When they have doubts, then it becomes difficult for the business
to perform effectively and efficiently.
6.3 Limitation
The research is restricted to one particular country. In this context, there are many other
firms, vendors around the world in which research can be conduced. Further, it is important for
the research to be completed within the speculated time period. In addition to this, limitation is
with the financial support. There are speculated finance that is selected in order to completed the
project. All the activities are developed accordingly.
6.4 Recommendation in the future
There are certain set of recommendations that need to be followed so that business will
be able to achieve their desired goals. In this context, it is important that make sure that proper
analysis of the business is made in accordance with the requirement. Vendor should be selected
when all the objectives and goals that are set by the business are attained. Price plays vital role
and so that price should be determined and the quality in which the materials will be delivered
should be considered.
97

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