Outsourcing Production Facilities and Issues Faced by Aston Martin in International Market

This report discusses the impact of outsourcing facilities on an organization's performance and the challenges faced by Aston Martin in the international market. It includes a literature review on outsourcing in the automobile industry, challenges faced by Aston Martin, and research methodology. The report recommends strategies to overcome these challenges.

Global Economies and
International Markets

TABLE OF CONTENTS
Topic: To understand the process of outsourcing production facilities and its different issues
faced by the organisation in foreign market. A study on Aston Martin..........................................3
Background..................................................................................................................................3
Aim: To determine the impact of outsourcing facilities on an organisation performance and
issues faced by the company n international market. A study on Aston Martin.........................3
Objectives....................................................................................................................................3
Rationale......................................................................................................................................3
LITERATURE REVIEW................................................................................................................3
Study about the auto mobile industries when outsourcing production facilities.........................4
Challenges faced by Aston Martin when outsourcing production facilities................................5
RESEARCH METHODOLOGY....................................................................................................6
Research type...............................................................................................................................6
Research design...........................................................................................................................6
Research approach.......................................................................................................................7
Research philosophy....................................................................................................................8
Data collection.............................................................................................................................8
Sampling......................................................................................................................................8
Data analysis................................................................................................................................9
Ethical consideration...................................................................................................................9
REFERENCES..............................................................................................................................11

Topic: To understand the process of outsourcing production facilities and its
different issues faced by the organisation in foreign market. A study on
Aston Martin
Background
The company Aston Martin is manufacturing automobile organisation which is situated in
London, United Kingdom. The company focuses on designing the automobiles in classic way
and provides luxury automobile in the market which has created a huge demand and craze
among public (Pereira, Santos, Sempiterno and et.al., 2021). However, the company faces some
issues in outsourcing of their production in the international market where this report has been
conducted to identify the appropriate solution.
Aim: To determine the impact of outsourcing facilities on an organisation performance and
issues faced by the company n international market. A study on Aston Martin
Objectives
To study about the auto mobile industries when outsourcing production facilities
To identify the challenges faced by Aston Martin when outsourcing production facilities
To recommend strategies to Aston Martin for overcoming the challenges when outsourcing
facilities in foreign market
Rationale
The present report has been conducted to recognise and identify the major issue which the
Aston Martin organisation is facing in the outsourcing of their automobile production and
suffering from difficulties to launch and outsource their products in foreign market. However,
this report will include and fulfil the gaps from the past research and provides the relevant and
updated data and information in definite manner.
LITERATURE REVIEW
According to Ozili and Arun, (2020), globalization refers to show how technology and trade
has build the world in a connected and interdependent place. It captures in the scope the social
and economic changes which base ben come about as result. Globalization is driven through
occurrence of economic a cultural system which promotes and in some situation necessitates,
enhance interaction, integration and interdependence among the nations. More the regions or
countries became tangled culturally, politically and economically more the world, will become

globalized. Whereas in globalized economy countries change the product and service in which
they have a competitive advantage. It means they can make and provide more efficiently with the
least sum of resources at decreased cost as compared to competitive nations.
Zhang and et.al., (2019), Policies which encourage free trade as well as open borders and
international pattern all lead to economic globalization. It modifies for businesses to approach
lower priced raw materials and take benefit of low cost labour markets as well as access huge
developing growing markets close to the world to sold out the goods and services. Whereas the
technological changes in globalization such as internet communication has improved the sharing
of information or ideas among people of different country.
Study about the auto mobile industries when outsourcing production facilities
As per the view of De Massis and et.al., (2018), outsourcing manufacturing consist of
acquiring certain production process to outside provider. The industry is growing rapidly in
global industry with introducing to the new technology and trends. To sustain cost, several
companies started outsourcing production facilities to follow up with the new market trends.
Also, the outsourcing of design and developing models are provided to the sub contractors. The
entire responsibility of creation, delivery and certification is division is interpreted by the
external company. This is the extensive experience and ready-made infrastructure which
converts into the high quality of manufactured products. Whereas this approach is selected by the
auto mobile industries and outsourcing is the rich tradition. It as the value to approach and
reduce the production cost, with the benefit it can be worth to consider outsourcing. Outsourcing
offers various advantages for OEMs specifically it is highly divided and competitive auto mobile
industry where more variety of cars are available. If the right way is approached then contract
manufactures will able to provide economic advantage to auto makers.
SERGI., B.S., (2018), Many brands make investments in optimizing the process but also in
innovation as well. It is important competition element for brands who must able to get minimum
production cost but don't have the knowledge about certain areas. Moreover, with the reducing
cost, there is the opportunity to form more flexible supply chain, when the demand for element
changes the production capabilities is accepted by the market needs. Significantly it assists
management of the issue, rather than allowing the quick action to needs of the present situations.
The effectual rate of protection in auto mobile is higher than on components, difference of
protection misconduct the allocation of resource and investing patterns in auto mobile industries.

The component part has the high employment general potential and export strength than auto
assembly segment of sector. Component manufactures are globally in competition with
maintaining the profitability levels.
Challenges faced by Aston Martin when outsourcing production facilities
As denoted by Şenol and Zeren, (2020), outsourcing is beneficial for the industries to
grow further but there can be some negative aspect which can be considered by the brands. The
outsourcing cannot be considered as advantage for the long term process. Offshore
outsourcini9ng is more cost effective which may bring the challenges of hidden cost of provider
selection, handover and cost relates with lay-offs of general employee who will cannot be
resettled internationally. Managing the offshore relations will be challenging due to change in
different time zones, languages and preferences. Off shore outsourcing carry own set of
challenges which should be analysed by the company while looking for outsource for inessential
business processes. The challenges will reflect as hidden cost, cultural issues, weakened
customer focus and poor quality. Outsourcing is the method of handling over the control of
business function and process to third party. In which there are chances of appearing of risk as
well which can be the service delivery as more time it would take to provide service to the
customer it would reflect negatively and below expectations. Failure disorder can be the biggest
challenge for the auto mobile industry, if the quality of services are not met with the desired
target of the company it will lead to the destructive outcomes. It depends upon the service
provided to the customers as well as how the relations are maintained with them.
Gilpin, (2018), There is risk of misplace of sensitive data and sudden loss of
confidentiality are the major disadvantage for the outsourcing. With outsourcing departments,
third party should be rarely disclosed to privacy data which can be easily stolen and can be
misused. Such corporations take intellectual property seriously and having the foolproof
measures as well as checking to the data loss and private contracts is essential while discussing
the outsourcing deals. The service cost of the product highly variable because the technologies
and service are used in it requires the high cost. There are few variables which affect the final
cost and calculating to the profitability usually takes position on the basis of negotiations.
Staying up with technology is also expensive and time-consuming but if it is handled in the
systematic way it may add value for the long term.

It takes years to build the brand name whereas some few missteps leads to destroy it,
monitoring the quality and the program are must carry out. Extensive and global supply chain are
powering the automotive industry and vast distances leave productive partnership at significant
risk. Ineffective communications varied standards, software and protocols is tough and rendering
to platforms which purpose to address the problem outdated. Lacking transparency due to the
operational issues leads to misunderstanding which prevent true benefit of partnership. If sales of
reduced car will emerge it will be the critical issue for the automotive industry, as purchasing
will be the least priority for the customers. The lack of sales will leads to the excess inventory,
high debts and demand uncertainness.
RESEARCH METHODOLOGY
Research type
Research type is the process or a kind of method to collect the data and information on the
appropriate manner from where the researcher can be able to conduct the report effectively. In
other terms, research is defined as a careful practice for completing the particular topic. Research
is generally classified in approaches which are qualitative and quantitative methods. Both
qualitative and quantitative have their different aspects for the research. The qualitative research
defines as a method of data collection in the theoretical manner or a detailed manner form where
the study can be conducted in brief order (Smith, Date, Spencer, de Tonnerre, and et.al., 2020).
However, qualitative research can be also defined as a collection of the data from open sources
such as from the conversation, communication and through questionnaire.
Quantitative research as name suggests it involves the collection of information through
figures and numerical data. It generally includes the patterns, predictions for the research. As for
this research qualitative research approach is used as it provide the advantage as it enables the
researcher to build the good understanding and emotional relation with the participants. Through
this approach researcher can also able to observe the changing behaviour of the participants
which is beneficial for the research. But in quantitative research approach there are more chances
in which researcher focus on false numbers which can be misleading in the research. Therefore,
for this research qualitative research approach is more suitable and relevant.
Research design
Research design is the most important framework for the research which involves the
research methods and techniques which are being used by the researcher. The research design is

mainly segmented into two factors named as exploratory and descriptive research design.
Exploratory research design is conducted for the research issue when there is no past data
available for the researcher, it also gives the flexibility which can be effective for the research.
Descriptive research is about collecting the information of varying topics this information mainly
focus on to examine the extent so that various conditions can be developed among the concept.
Cause and effects are mainly based on the experimental research (Santos and Silveira, 2021).
As for this research the exploratory research is much more suitable as it involves the
surveys, qualitative analysis also it gives more flexibility to the researcher and it is cost effective.
This research design approach also helps to develop the basic foundation of the research topic so
it will lead the researcher for further work. Descriptive research design does not give proper
information about the research also the outcome of the result also reflect the biases because of
absence of statistical tests therefore for this topic exploratory research is more suitable.
Research approach
Research approach refers as an accurate planning and procedure that help and support the
investigator to collect the data by using different techniques and methods and can be able to do
analysis and a correct form of interpretation. This involves the procedures which includes the
stages as data collection for the research, use of tools, interpretation. It is mainly divided into the
inductive, deductive part. Inductive is defined as initiating with the theories and observations to
complete the research is it based on the qualitative methods. Thus, inductive research approach is
a simple method where research uses a set of observation and then theorise the patterns in
definite manner It begins with the empirical observations, which identify the patterns of the
observation and further it theorizing the patterns (Rajasinghe, 2020)
Deductive method is concern with the creation of hypothesis which is mainly depended on
existing theory. Whereas, the deductive research approach is a scientific form of investigation in
which the researcher read out the existing theories of the phenomenon and after that process they
test the hypothesis This research is particularly focusing on inductive research as it provides
more flexibility to the researcher also gives the cooperation to build the new theories. Deductive
research approach method does not make understand the researcher about the rules which
involve in the research.

Research philosophy
Research philosophy is a belief about the way the data and information will be collected
and analysed in definite order is known as research philosophy. Research philosophy is the
credence regarding the process in which collection and analysis of the phenomenal data for use.
These philosophies are segmented into two types: positivism and interpritivism. The positivism
research philosophy defines the reality that requires to be used by the researcher to conduct the
effective way of the research study.
Also, the interpritivism philosophy is based on the principles and states the researcher to
perform and conduct the study by observing the social world. Other side, positivism mainly
focuses on verifiability of the research data as researcher collects the factual data. For this
research topic positivism approach is suitable as it gives reliable data which is needed for the
good research (Castillo-Velazquez and Silva-Lopez, 2018). The interpritivism approach
sometimes gives low reliable and non-generalised data.
Data collection
Data collection already defining its meaning by its own term where it explain the method
and form of data collection and gathering from where the research can be able to lead the
research in relevant and definite order. It is important to be used by the investigator to gather the
information in relevant way and can solve the issue of the research problem in effective manner.
It is the process of collecting the data from the relevant sources. This process involve two
process as primary and secondary (KANU, 2019).
Primary data collection which is itself collected by the researcher through surveys,
interviews and questionnaire. Secondary data collection is through someone else in which
researcher can gather the data from books and journals. For the research primary data collection
is useful as it give the factual data through observation. It will help the researcher for gathering
the information for research. However, the present research is going to use the secondary data
collection as it will enable the researcher to save the time in researching for the information and
it is also cost effective.
Sampling
Sampling is the process for selecting the group for collecting the information which is
required for the research. It includes probability and non-probability sampling. Probability
sampling involves the random selection of group of people. Non probability sampling is

generally based on the convenient selection. For the research 40 randomly selected employees of
Aston Martin are chosen by the researcher to collect the information about the topic. Researcher
conducts the interview of the employee to share their opinion over the topic (Larshin,. and
Lishchenko, 2018). This information can be further used by the researcher to implement in
research for the good result.
Data analysis
Data analysis is a kind of procedure utilised by the investigator for evaluation of the data
and information in appropriate manner. In other words, data analysis is the systematic process of
applying the methods and techniques to process the data for the research. For the good result
researcher must need to analyse the good information so that it gives the good outcomes of
research. It is important to use by the researcher to get the result effectively as it also makes easy
for the researcher to conduct the research study in definite order. This process involves the two
procedures as thematic and statistical process.
Thematic data analysis process generally used the qualitative approach which include the
reading from data set also enables to find or analyse the pattern of research. Statistical data
analysis involves the quantitative approach which aims to measure out the data for performing
the statistical analysis (WU, HAO and et.al., 2019). For this research thematic data analysis is
used as it gives the flexibility to the researcher to analyse the research data. It is unsupervised
method so that researcher does not need to set these stages in early process. Statistical data can
be consider as secondary data which have chances for misinterpretation therefore thematic data
analysis is better for this research. Thus, the present research study will use the thematic research
analysis as it delivers the flexibility and wider range of analytical options which help the
investigator to direct and lead the study in definite manner.
Ethical consideration
An accurate set of principle and ethical guidelines which is required to be adopted by the
investigator to be essentially adopted to lead the study in definite manner. The researcher has to
maintain the confidentiality while conducting the research as it will enable the study to be
conducted in correct manner (Dodds, and Hess, 2020). Also, the number of references will be
mentioned by the researcher which ensures that the content and information which has been
collected is not copied and plagiarised from any other sources and maintain the ethics and
principles. In order to fulfil the aspects of ethical consideration, researcher will provide a

consent form to randomly selected 40 employees of Aston Martin. This shows their willingness
of the participation towards the survey which helps the researcher in their investigation.
Timeline
Activities 1
week
2 week 3
week
4
week
5
week
6
week
7
Week
Selection of
the topic
Aim
creation
Research
proposal
Method
selection
Literature
review
Research
methods
Tutor
approval
feedback
Modification
submission
Budget
Budget is the simple and casual meaning where it provides the detailed statement outlining the
entire costing and expenditures of the project and supports the company to achieve their set goals
and targets in definite way.
Resources Expenditures
Recurring revenue 53,290
One time Revenue 3,253

Other resources 4,200
Total revenue 60,743
Total cost of sales 10,143
Gross profit 50,560
Operational cost 28,721
Sales and service 7,082
Total operating expenditure 35,803

REFERENCES
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International Conference on Electronics, Electrical Engineering and Computing
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Gilpin, R., 2018. The challenge of global capitalism: The world economy in the 21st century.
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KANU, I.A., 2019. Igwebuike research methodology: Towards a new trend for scientific and
wholistic investigation. Villanova Journal of Science, Technology and Management.
Larshin, V.P. and Lishchenko, N.V., 2018. Research methodology for grinding systems. Russian
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