Benefits and Risks of Offshoring and Outsourcing for Sainsbury's

This research report examines the benefits and risks of offshoring and outsourcing on Sainsbury's business operations, focusing on international expansion opportunities and risk mitigation strategies. The study employed a qualitative research method, utilizing questionnaires to gather primary data from 30 respondents. Secondary data was also collected from various sources. The findings indicate that both outsourcing and offshoring are valuable for enhancing profitability and business opportunities. The research highlights the importance of ethical considerations and effective communication. The report analyzes the awareness of globalization, the role of offshoring and outsourcing within it, and the main benefits and risks associated with these strategies. It interprets data related to communication problems, unemployment, cultural differences, and various solutions to mitigate these risks. The study concludes with recommendations for Sainsbury's to optimize its international operations and enhance its profitability, including a focus on ethical practices and communication.

Research Project

Table of Contents
TITLE .............................................................................................................................................1
EXECUTIVE SUMMARY.............................................................................................................1
METHODOLOGY..........................................................................................................................1
RESULTS/FINDINGS ...................................................................................................................3
DATA INTERPRETATION...........................................................................................................6
DISCUSSION................................................................................................................................20
CONCLUSION..............................................................................................................................20
RECOMMENDATION.................................................................................................................21
REFLECTION...............................................................................................................................21
REFERENCES .............................................................................................................................23

TITLE
“To investigate the benefits and the risks of offshoring and outsourcing on business
operations of multinational organisation”. A Study on Sainsbury's.
EXECUTIVE SUMMARY
This research report talks about benefits and risks of offshoring and outsourcing on
business operation of Sainsbury's. The purpose of this research is identify various opportunities
for Sainsbury's which are developed through international expansion. Along with this, the
research is helpful in evaluating risks of the similar concept along with the ways through which it
can be overcome effectively. In the current study, investigator have used qualitative research
method for attaining valuable research. Along with this, Questionnaire had been adopted by
investigator as it is helpful in collecting data in minimum time limit. From overall study, it has
been identified that outsourcing and offshoring both are valuable concept for the company as it
helps them in attaining maximum business opportunities which results in higher profitability. On
the basis of whole study, it has been concluded that every organisation should go for outsourcing
in order to improve its performance and enhance its profitability. At last, it is recommended to
Sainsbury's that its top management team should focus on following all ethical and other related
norms at the time of international working. Along with this, they are also recommended to adopt
effective communication channel for conveying right information to respective person.
METHODOLOGY
In the research methodology section, investigator have used primary as well as secondary
method for collecting information regarding the topic. Primary means information is gathered by
researcher for the very first time. For this investigator use questionnaire method. Whereas
secondary research means data collected from already published area which includes newspaper,
journals and from websites. In this research, for primary data scholar has taken 30 respondents
for analysing their views and thoughts. For this, questionnaire method is adopted for gathering
information. On the other hand secondary data includes research articles, newspapers, online
articles, books, journals, websites and many more. With the help of these methods researcher
will be able to gather sufficient amount of information in order to successfully accomplishing
this research.
1

RESULTS/FINDINGS
Questionnaire
Q 1) Are you aware with the concept of globalisation?
a) Yes
b) No
Q 2) Do you think offshoring and outsourcing is the part of globalisation?
a) Agree
b) Disagree
Q 3) As per your viewpoint, which is the main benefits of offshoring on business operations of
Sainsbury's?
a) Increase in number of customers
b) Favourable government policies
c) Better approach to new opportunity.
Q 4) According to your perception, what are main risk of offshoring on business operations for
Sainsbury's?
a) Communication problems
b) Increase unemployment
c) Cultural and social differences
Q 5) What are the different ways through which risk of offshoring and outsourcing can be
overcome by Sainsbury's?
a) Followance of norm and policies
b) Adoption of right communication channel
c) Better training session for employees
Q 6) Do you think offshoring and outsourcing will be helpful for Sainsbury's in terms of its
profitability improvement?
2

a) Agree
b) Disagree
Q 7) As per your viewpoint, which one is the main reason that will be required by Sainsbury's at
the time of performing operational activities at international market place.
a) Human resource
b) Financial Funds
c) Advance technology
Q 8) Do you think, Sainsbury's is required to enhance its product portfolio for grabbing
attention of more customers.
a) Yes
b) No
Q 9) Do you think outsourcing could affect quality of products and services offered by
Sainsbury's?
a) Yes
b) No
Q 10) As per your viewpoint, which one is the bes source of fund will help Sainsbury's for
expansion of business at international market?
a) Bank Loan
b) From Friends and Family
c) Crowdfunding
d) Angel Investors
Q 11) Provide some recommendation for Sainsbury's by which it perform its operational
activity in international market place in effectively so that its profitability can be raised.
Questionnaire
3

Q 1) Are you aware with the concept of globalisation? Frequency
a) Yes 22
b) No 8
Q 2) Do you think offshoring and outsourcing is the part of globalisation? Frequency
a) Agree 25
b) Disagree 5
Q 3) As per your viewpoint, which is the main benefits of offshoring on
business operations of Sainsbury's?
Frequency
a) Increase in number of customers 10
b) Favourable government policies 10
c) Better approach to new opportunity. 10
Q 4) According to your perception, what are main risk of offshoring on
business operations for Sainsbury's?
Frequency
a) Communication problems 12
b) Increase unemployment 8
c) Cultural and social differences 10
Q 5) What are the different ways through which risk of offshoring and
outsourcing can be overcome by Sainsbury's?
Frequency
a) Followance of norm and policies 8
b) Adoption of right communication channel 8
c) Better training session for employees 14
Q 6) Do you think offshoring and outsourcing will be helpful for Sainsbury's
in terms of its profitability improvement?
Frequency
a) Agree 18
b) Disagree 12
4

Q 7) As per your viewpoint, which one is the main resource that will be
required by Sainsbury's at the time of performing operational activities at
international market place.
Frequency
a) Human resource 11
b) Financial Funds 15
c) Advance technology 4
Q 8) Do you think, Sainsbury's is required to enhance its product portfolio
for grabbing attention of more customers.
Frequency
a) Yes 26
b) No 4
Q 9) Do you think outsourcing could affect quality of products and services
offered by Sainsbury's?
Frequency
a) Yes 23
b) No 7
Q 10) As per your viewpoint, which one is the bes source of fund will help
Sainsbury's for expansion of business at international market?
Frequency
a) Bank Loan 10
b) From Friends and Family 6
c) Crowdfunding 6
d) Angel Investors 8
5

DATA INTERPRETATION
Theme 1: Aware about the concept of globalisation
Q.1. Are you aware about the concept of globalisation ? Frequency
Yes 22
No 8
Interpretation: Globalisation is considered as the integration of businesses for the
purpose of growth in terms of profitability ratio. On the basis of above stated graph it has been
analysed that 22 people are aware about the concept of globalisation as they are working in
international companies which are indulge into offshoring and outsourcing work. On the other
hand, remaining 8 people have represented their negative response towards the thought as they
have not even head about this concept. It simply shows that maximum number of population
knows about globalisation as it is popular topic.
6
22
8
Yes
No

Theme 2: Offshoring and outsourcing is the part of globalisation
Q 2) Do you think offshoring and outsourcing is the part of
globalisation?
Frequency
a) Agree 25
b) Disagree 5
Interpretation: As per the above mentioned pie chart, it has been analysed that, out of
30 respondents, 25 respondents are agree from this because they according to them offshoring
and outsourcing is the part of globalisation. This is because both offshoring and outsourcing act
as an globalisation as their role is to do work outside the country which automatically helps
Sainsbury's for making relations with other countries. Along with this, their companies expand
the businesses transferring or starting business in other countries and also they knows about
globalisation. On the other hand, remaining 5 respondents says that they are not agree from this
as according to them offshoring and outsourcing is not a part of globalisation. This is because
they do not have such knowledge about globalisation and market environment.
7
25
5
a) Agree
b) Disagree

Theme 3: The main benefits of offshoring on business operations of Sainsbury'
Q 3) As per your viewpoint, which is the main benefits of offshoring
on business operations of Sainsbury's?
Frequency
a) Increase in number of customers 10
b) Favourable government policies 10
c) Better approach to new opportunity. 10
Interpretation: As per the above mentioned pie chart, it has been analysed that, out of
30 respondents, 10 respondents says that increase in number of customer is the main benefit of
offshoring on business operation of Sainsbury's. This is because offshoring is a process by which
companies do their work in another country by which they attract customers towards it and
expand their business accordingly. On the other hand, 10 respondents says that favourable
government policies is the main benefit of offshoring on business operation of Sainsbury's. This
is because every country has their own rule and regulations so, it will help companies to expand
the business and achieve their targeted goals. Whereas remaining 10 respondents says that better
approach to new opportunity is the main benefit of offshoring on business operation of
Sainsbury's. They think when company expand the business then they get various opportunities
8
10
10
10
a) Increase in number of
customers
b) Favourable government
policies
c) Better approach to new
opportunity.

through which they can survive long period of time at competitive market and create positive
brand image in the market area.
Theme 4: Main risk of offshoring on business operations for Sainsbury's
Q 4) According to your perception, what are main risk of offshoring
on business operations for Sainsbury's?
Frequency
a) Communication problems 12
b) Increase unemployment 8
c) Cultural and social differences 10
Interpretation: As per the above specified pie chart, it has been analysed that, out of 30
respondents, 12 respondents says that communication problem is a main risk of offshoring on
business operations for Sainsbury's. As when company expand their business at another country
then there is various problems which is faced by the company and i.e., communication. This is
because in every country has their different different culture, language so it will create problem
for them to deal with the situations. On the other hand, 8 respondents says that increase
unemployment is a major risk of offshoring on business operations for Sainsbury's. Whereas,
remaining 10 respondents says that cultural and social differences is a risk factor of offshoring
9
12
8
10
a) Communication problems
b) Increase unemployment
c) Cultural and social
differences

on business operations for Sainsbury's. This is because sometimes company not understand the
market analysis of another country which will create problem as different country has different
culture.
Theme 5: Different ways through which risk of offshoring and outsourcing can be
overcome by Sainsbury's
Q 5) What are the different ways through which risk of offshoring
and outsourcing can be overcome by Sainsbury's?
Frequency
a) Followance of norm and policies 8
b) Adoption of right communication channel 8
c) Better training session for employees 14
Interpretation: There are various ways by which risk of offshoring and outsourcing can
be overcome by Sainsbury's through which they can survive long period of time at competitive
place. As per the above specified pie chart, it has been analysed that, out of 30 respondents, 8
respondents says that allowance of norms and policies is a way by which risk of offshoring and
10
8
8
14
a) Followance of norm and
policies
b) Adoption of right
communication channel
c) Better training session for
employees