Research Report: Offshoring and Outsourcing on Aston Martin Operations

This report, focusing on Aston Martin Lagonda Global Holdings plc, investigates the benefits and risks of offshoring and outsourcing on its business operations. The research begins with an overview of globalization, offshoring, and outsourcing, followed by the company background. It explores the aim, questions, and objectives of the research, along with the rationale. The literature review examines the concepts of offshoring and outsourcing, their benefits and risks, and strategies to mitigate risks. The methodology, data analysis, and research outcomes are presented, followed by recommendations for alternative research methodologies and a conclusion. The report highlights how Aston Martin leverages offshoring and outsourcing for cost reduction, efficiency, and access to specialized resources, while also addressing potential risks like communication breakdowns and inaccurate timeframes. It offers insights into how Aston Martin can overcome these risks and optimize its global operations.

Research Project
Part 2

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

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

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

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

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

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

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

According to Owens, (2014), risk which are highly associated to outsourcing and Off-
shoring needs to have management and its measurement to take instant solution to all these given
risk over a period of time. In context with the Aston martin, business entity have major solution
to overcoming this risk which are as follows:
Effective planning: Before outsourcing any products or services from any other business
firm or country, this will be prominent to do led effective planning, controlling and organising of
at what level, outsourcing will have to be undertaken and how this will impact functioning of an
organisation at what level of circumstances or issues. In this, risk measurement will have to be
done and steps towards its prevention which will be possible with support of an effective plan.
Managing selection risk: This is highly suitable to have selection of supplier in an initial
stage, so that deliver of raw material will be done in an effective manner, in order to generate
availability of raw materials or inputs to enhance profitability for business entities (Thompson,
Strickland and Gamble, 2015). Also, in this risk are also requires to be calculated in advance or
preparation has been done in context of its solution for longer period of time.
Optimum utilisation of resources: It will be necessary to have resources which can
assist in making rapid outsourcing of an inputs from other business process or any other
preferable nations. Aston Marin needs use their resources such as man, labour, money and other
machines to get outsourcing of the raw materials in an effective and productive way to generate
process.
Financial support: Aston Martin needs to prepare budgeting making, in which funds
level of allocation have been done to bear higher level of expenses in process of outsourcing and
Off-shoring which is highly prominent to establish rapid availability of products or services in
given period of time.
These steps are highly necessary to be undertaken in order to enhance suitable results
over the given period of time (Tate and Bals, 2017). Proper level of planning and controlling is
necessary to establish platform for Aston Martin to attract ease availability of resources or raw
materials in order to gather relevant and suitable outcomes in context of accomplishment of goals
and objectives highly in context of Aston Martin. These given ways are needs to be evaluate with
improvement in planning and direction.
7

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology consider as an effective process applied by researcher to collect
accurate and reliable data about the topic (Gerbl and et. al., 2015). For this chapter, research
onion framework introduces as an important model which will support an investigator to identify
reinvent methods for accumulating proper data bout the positive and negative impact of
offshoring and outsourcing on business operations of Aston Martin. This framework has
different layers which are determine as under:
Research philosophy: There are mainly two kind of research philosophy which is
positivism and interpretivisim. In order to evaluate data about the risks and benefits of offshoring
and outsourcing on business operations, interpretivisim philosophy is most suitable because it
will help an investigator in arriving appropriate conclusion (Gunasekaran and et. al., 2015). On
the other side, positivism philosophy is not useful and suitable for researcher while driving valid
conclusion for this study.
Research approach: Inductive and deductive are consider as a two main approach of
research used by researcher to gather data about the challenges and benefits of offshoring and
outsourcing on business operations of an organisation. According to the topic, inductive
approach is more suitable because it give reliable and valid information regarding the topic.
Research strategy: There are different types of research strategies including,
experimental, survey, ethnography, action research, grounded theory, cross-sectional and
longitudinal studies, exploratory, descriptive and explanatory studies (Jensen, Larsen and
Pedersen, 2013). All these are essential, but according to the study, survey questionnaire is more
essential for gathering appropriate information from selected respondents.
Research Choice: There arr basically two types of research which is qualitative and
quantitative. Those type of research are essential for an investigator to accumulate accurate
amount of data about the topic. According to the topic, qualitative type of research is used by
researcher because it give information in form of quality (Khan and Azeem, 2014). On the other
side, there is quantitative research which is not suitable according to this topic because it need
information in form of numbers, facts etc.
Time Horizon: Gantt chart introduces as a best tool for identifying starting and ending
time period for completion of research activities. In this techniques, different activities are
included systematically which are determine as under:
8

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

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