Exploring the Impact of Outsourcing on Retail Globalization

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Research Proposal
Research Topic: Has outsourcing improved globalised business opportunities for the retail
businesses?
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Table of Contents
1. Introduction..................................................................................................................................3
1.1 Background of Research........................................................................................................3
1.2 Problem Statement.................................................................................................................3
1.3 Research Rationale................................................................................................................3
1.4 Objectives..............................................................................................................................4
1.5 Research Questions................................................................................................................4
2. Literature Review........................................................................................................................5
2.1 A strategic framework in the area of logistics and retail management..................................5
2.2 Globalisation of the after sales service through effective policies of the human resource
management.................................................................................................................................5
2.3 Retail globalisation and the impact of change in operations of host economies...................5
2.4 Benefits associated with outsourcing strategies....................................................................6
2.5 Literature Gap........................................................................................................................6
3. Methodology................................................................................................................................7
3.1 Research Philosophy..............................................................................................................7
3.2 Research Approach................................................................................................................7
3.3 Research Design....................................................................................................................7
3. 4 Data Collection and Analysis Technique.............................................................................7
3. 5 Sample Size and Sampling Technique.................................................................................8
3.6 Ethical Consideration.............................................................................................................8
3. 7 Timeline and Gantt chart......................................................................................................9
Reference list.................................................................................................................................10
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1. Introduction
Globalisation has led to the expansion of outsourcing activities that has had tremendous impact
on the retail business sector. Outsourcing is one of the strategic techniques that aid in the process
of expanding the retail sector. Outsourcing is associated with lots of factors that have the effect
of enhancing the retail business by utilisation of maximum resources and ensuring that cost
minimisation is possible (Dinu, 2015).
1.1 Background of Research
With an increase in the operations, there is the chance that the cost overheads increase manifold
and that is the reason why outsourcing has become a crucial tool in ensuring that there are
maximisation of resources through communication technology and effective outsourcing in all
activities from procurement, manufacturing, logistics and finally after sales services (Globerman
and Vining, 2017). In the opinion of Rao (2017), it has been observed that there are many aspects
of outsourcing human resources and though there is a lot of saving of money in the context of the
business, yet there are some disadvantages. These are the concepts that are forming the basis on
which this research study is being built.
1.2 Problem Statement
Globalisation has led to many golden chances for retail businesses to enter new markets and
ensure that various potential advantages can be availed through the outsourcing activities. This
proposal is taking the effort to understand the various concepts that are linked with advantages
that are provided by inculcating outsourcing business in the business operations of retail
activities of Marks and Spencer’s
1.3 Research Rationale
The reason of doing this research study is this that it is associated with ensuring that by adopting
outsourcing activities it is important to analyse how much benefit can be drawn by the company
by availing the benefits of outsourcing and yet ensure that there is maintenance of quality and
thus there is final benefit derived. The logic behind doing this research study is to understand the
varied issues that are linked with reaping the benefits of outsourcing.
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1.4 Objectives
 To understand the extent to which outsourcing positively impacts retail business in their
globalisation drive
 To ascertain the various areas of outsourcing in retail business that can negatively affect
the business
 To analyse the business cycle and identify areas that can be outsourced at lesser cost in a
globalised business environment
 To understand the impact on the brand value due to extensive outsourcing of business
activities
1.5 Research Questions
 What is the extent to which outsourcing has a positive impact on the retail business in a
globalised environment?
 What are the negative impacts of outsourcing on a global retail business?
 What are the various different areas that are associated with the retail business that can be
outsourced to reduce the overhead cost?
 How is the brand value of the retail business affected due to extensive outsourcing
activities?
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2. Literature Review
Literature review is that part of the research that is associated with survey of books and articles
and review of scholarly papers that are associated with the research topic. This is the
comprehensive summary of all the various research that has been conducted on the topic. The
literature review focuses on the fact that critical evaluations of various theories that are
developed by earlier researchers are studied.
2.1 A strategic framework in the area of logistics and retail management
In the current business scenario, logistics has become a crucial part of the retail business. In the
opinion of Fernie and Sparks, (2018), from 2002 onwards there has been major transformation in
the retail supply chain management. This is associated with the fact that with the development
of modern, fast, and cost effective means of transportation it is more sensible to ensure that there
is the chance that there will be least cost implication for the organisation. In the case of fashion,
retail there is the chance that relationships are built that will ensure that end- to –end supply
chains are developed in this respect.
2.2 Globalisation of the after sales service through effective policies of the human resource
management
There is the impact of globalisation on various outsourcing activities. The human resource policy
is associated with ensuring that there is reduction in the cost burden of the company as the after
sales service section can be completely outsourced at a fixed cost to another business process
outsourcing unit that will ensure that they conduct the after sales service on behalf of the retail
brand. The cost of recruiting and training a huge number of staff can be completely reduced in
this respect. All firms enjoy global business services and the edge of and these are major drivers
of economic growth (Wirtz et al., 2015). Through effective use of outsourcing of the repetitive
job it is important that the increasing cost of retaining the human resources are reduced and this
is where outsourcing is most beneficial for the firm (Caruth et al ., 2013).
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2.3 Retail globalisation and the impact of change in operations of host economies
With constant change in the areas of operation of the retail business and their endeavour to enter
newer markets, it has become important that these firms commit to change in business
techniques in the new host countries. It is associated with the fact that the host country often
proposes that there is the need to set up procurement and manufacturing units in the host country
and these are done with the help of outsourcing units (Coe and Wrigley, 2017). In the case of
retail sales, the ever-expanding middle class of the emerging markets fuel these and that is the
reason behind this is that there is the need to ensure that there is setting up of a system that will
ensure that retail business is taking into consideration the various factors that can lead to cost
saving through outsourcing.
2.4 Benefits associated with outsourcing strategies
It has been observed that firms have the tendency to outsource that is associated with the fact that
it is done to increase the productivity function. There is the concept of achieving higher
productivity levels that is associated with outsourcing is much higher (Kitcher et al., 2013). In
the case of most retail business there is outsourcing which is associated with the choice in
between foreign direct investment and outsourcing. There is an increasing tendency of transfer
of knowledge and setting up of outsourcing units than setting up the entire process by investing
in capital assets by the firm. This transfer of knowledge and the cost effectiveness of the business
is associated with outsourcing of some portions of the operations is leading to outsourcing
becoming the most valuable solutions (Chen et al., 2012). There is also a lot of benefit that can
be derived from the fact that the procurement function can be outsourced and that is the reason
why procurement and purchasing activities can be highly benefitted because there is more
chances of competitive pricing that can be provided. In the opinion of Yang et al ., (2012), it is
important that there is a cost analysis done that will ensure that the business to understand what
is more beneficial, the cost of setting up separate unit or outsourcing.
2.5 Literature Gap
The gap in the literature is associated with all those various aspects of the topic that have not
been addressed by the current available literature. It is that part of the topic that is related to
outsourcing aspects of the retail business that have developed as a direct result of globalisation.
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The literature gap that is existing in this topic is that in the fashion clothing industry there is a lot
of savings that arise due to outsourced methods of procuring raw materials and there are lots of
unlawful activities such as child labour and bonded labour that are associated with these supply
chains. Any scholarly article has not duly highlighted these.
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3. Methodology
The methodology is one of the most important parts of the research project. It is associated with
giving a proper guideline to the process of the research study. It is associated with the fact that it
ensures that the various processes that are associated with correctly conducting the research and
systematically representing the same.
3.1 Research Philosophy
The philosophy of this research study shall be selected as positivism. This is associated with
factual view of the observation. This kind of research is associated with quantifiable observation
(Bryman, 2016). In the process of positivism, there is the need to ensure that the researcher is
concentrating on data that will lead to the need to concentrate on facts and observations
3.2 Research Approach
The research approach that shall be contemplated in the case of this research study is deductive
approach. There is effective use of existing theories and models that will ensure that there are
opportunities to deduce the various factors associated with the research study (Taylor et al .,
2015).
3.3 Research Design
Explanatory research design will be applicable in this respect. The research design in this case
concentrates on the fact that cause and effect relationship is established. It is a structured
approach and it ensures that systematic handling of issues is possible (Bell et al., 2018).
3. 4 Data Collection technique and analysis
Collection of primary data is the technique that will be used in this research study and there will
be the survey conducted that will ensure that the survey is conducted in a clear manner. There
will be effort taken to decipher the trends (Research-Methodology. 2019). The primary data
collected in the survey will be linked to close ended specific questions mostly. In the case of
deductive approach, there is the chance that there is less time to conduct the research and there is
the process of following the path of logic.
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3. 5 Sample Size and Sampling Technique
The sample size that will be considered is of about 15 respondents who are employees of the
chosen organisation Marks and Spencer’s. These respondents will be selected on a one to one
basis and the first cum first serve factor will be accepted in this regard. The sampling technique
that will be considered in this regard is this simple random sampling. In this method of sampling
all the people have the equal chances of getting selected for the survey. There is very little bias
that is associated with this sampling technique and that is the reason why the reasons can be
generalised without the burden of bias (Research-Methodology.net, 2019).
3.6 Ethical Consideration
The ethical aspect that needs to be considered with this business is this that, the data that will be
collected from the survey will not be misused in any respect and that will be associated with
ensuring that ethical factors associated with Data Protection Act shall be adhered to. The ethical
consideration is a set standard and norm that is associated with ensuring that dignity of the
participants will be maintained there shall be no conduct that will be associated with
unacceptable practices. Ethical practices are maintained in a systematic manner by the researcher
without any breach of trust and there will be maintenance of confidentiality even after many
years.
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3. 7 Timeline and Gantt chart
The research timeline is associated with the following work break down structure. The work
breakdown sector of the research project is as follows:
Name of Activity Start
Date
Durati
on
End
Date
Objective of the research study are carefully developed 15.7.19 4 19.7.
19
The research purview is selected and there is careful analysis of
various variables
19.7.19 4 23.7.
19
Research questions are developed 23.7.19 2 25.7.
19
Survey setting and time is determined after correspondence and
permission from company
25.7.19 2 27.7.
19
Survey procedure is conducted 27.7.19 10 6.8.1
9
Sorting and arranging of the gathered data in a soft copy format 6.8.19 8 14.8.
19
Reading and sorting the responses on graphical scales 14.8.19 5 19.8.
19
Analysis of the quantitative data 19.8.19 5 24.8.
19
Analyzing of the trend that can be seen to emerge 24.8.19 5 29.8.
19
Presentation of the data in the desired format 29.8.19 2 31.8.
19
Validating the data process 31.8.19 2 2.9.1
9
Submission of the project 2.9.19 1 3.9.1
9
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Table 1- Work Break down structure
(Source- Created By learner)
Objective of the research study are carefully developed
The research purview is selected and there is careful analysis of
various variabales
Research questions are developed
Survey setting and time is determoined after correspondence and
permision from company
Survey procedure is conducted
Sorting and arranging of the gathered data in a soft copy format
Reading and sorting the responses on graphical scales
Analysis of the quantitative data
Analysing of the trend that can be seen to emerge
Presentating the data in the desired format
Validating the data process
Submission of the project
15.7.19 4.8.19 24.8.19 13.9.19
Figure 1: Gantt Chart
(Source: Created by the learner)
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Reference list
Caruth, D.L., Haden, S.S.P. and Caruth, G.D., 2013. Critical factors in human resource
outsourcing. Journal of Management Research, 13(4), p.187.
Chen, Y., Horstmann, I.J. and Markusen, J.R., 2012. Physical capital, knowledge capital, and the
choice between FDI and outsourcing. Canadian Journal of Economics/Revue canadienne
d'économique, 45(1), pp.1-15.
Coe, N.M. and Wrigley, N., 2017. Towards new economic geographies of retail
globalization. The new Oxford handbook of economic geography, pp.427-446.
Dinu, A.M., 2015. The risks and benefits of outsourcing. Knowledge Horizons. Economics, 7(2),
p.103.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Globerman, S. and Vining, A.R., 2017. The outsourcing decision: A strategic framework.
In Global outsourcing strategies (pp. 27-40). Routledge.
Kitcher, B., McCarthy, I.P., Turner, S. and Ridgway, K., 2013. Understanding the effects of
outsourcing: unpacking the total factor productivity variable. Production Planning &
Control, 24(4-5), pp.308-317.
Rao, V., 2017. Human Resource Outsourcing: Threat or Opportunity?. Available at SSRN
2912846.
Research-Methodology. 2019. Causal Research (Explanatory research) - Research-
Methodology. [online] Available at: https://research-methodology.net/causal-research/ [Accessed
10 Jul. 2019].
Research-Methodology. 2019. Simple Random Sampling - Research-Methodology. [online]
Available at: https://research-methodology.net/sampling-in-primary-data-collection/random-
sampling/ [Accessed 10 Jul. 2019].
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