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

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.