Make-or-buy decisions in legal services: a strategic perspective author: mari sako abstract how do corporate legal departments and law firms make decisions about 'making' or 'buying' legal services in what ways are their decisions governed by the usual criteria and factors identified in economic and managerial. A make-or-buy decision process for outsourcing abstract should firms perform logistics services on their own or should they buy them from a logistics provider today's glob- al competition forces companies to re- evaluate their existing processes, technologies and services in order to focuse on strategic. In line with global outsourcing becoming more and more utilized to enable more focus on core activities make-or-buy analyses have come of increasing importance however, it is not always as simple as looking at existing production capacity and decide to keep it in-house if capacity is sufficient and. Transaction cost economics provides a theoretical framework for sourcing strategies the paper discusses various sourcing strategy alternatives and an optimal sourcing strategy mix the authors reviewed the buy or make strategy of us firms carefully and evaluated empirical evidence the study found that the.
Firms routinely decide whether to make essential inputs themselves or buy the inputs from independent suppliers conventional wisdom suggests that a firm will not buy an input for a price above its in-house cost of production we show that this is not necessarily the case when a monopolistic input supplier. Pemp-emm2506 2 ms ramaiah school of advanced studies - bangalore session objectives • to assimilate meaning and application of make or buy strategy • to assimilate the appropriate decision making process in purchase management. In a make-or-buy decision, the two most important factors to consider are cost and availability of production capacity to buy a part rather than produce it internally include a lack of in-house expertise, small volume requirements, a desire for multiple sourcing and the fact that the item may not be critical to the firm's strategy.
The bulk of the product architecture and make-buy choice literature deals with product architecture changes from integral to modular form this development is often associated with a firm's tendency to change from a make to a buy strategy however, a few studies investigate the change of product architecture in the reverse. The paper presents a study relating to the strategic decision of 'make' or 'buy' to organizational performance, and whether it is related to the origin of the resources used on manufacturing firms in malaysia convenience sampling was done and 314 companies responded the findings indicate that there was no significant. Let's look at factors influencing the decision, how to arrive at a make or buy decision, and an example small-volume needs cost aspects (costs less to purchase the item) wish to sustain a multiple source policy item not necessary to the firm's strategy limited facilities for a manufacture or inadequate. Outsourcing make-or-buy decision logistics strategy maria cieśla faculty of transport, silesian university of technology krasiński 8, 40-019 katowice, poland corresponding author e-mail: [email protected] outsourcing strategy selection for transportation services based on the.
Abstract: reports that the make or buy issue is of major concern within manufacturing businesses, being directly linked to the basis on which a firm chooses to compete describes the development and use of a systematic approach to formulating a make or buy strategy, intended primarily for engineering manufacturing. This chapter deals with make or buy decisions as strategic decisions that firms have to make periodically for a variety of reasons such as introducing a new product, vendor performance, and changing. Make or buy decisions come into play when manufacturers weigh the pros and cons of buying materials and parts from vendors as opposed to making these items internally a make or buy decision that makes sense at one point in a company's development may not necessarily be the right decision for the long term make.
A make-or-buy business decision arises in business when a company must decide whether to produce goods internally or to purchase them. From three theoretical perspectives: transaction cost economics, strategic management and re- source-based view this paper aims at highlighting what firm's features are related to the make, buy and mixed innovation-sourcing decisions we found that these strategies are positively inter- linked which is challenging current. This paper describes an approach to structuring the make or buy decision process, basing it jirmly in the context of an overall manufacturing strategy the work has been carried out jointly by the university of cambridge manufacturing engineering group and lucas industries a review of the current state of ideas. Improve your make-or-buy strategy to release profit potential and establish the right balance between what you do in-house and what you choose to outsource.
Simplify the make-versus-buy decision that is built upon three key pillars: business strategy, product supply chain risks, and economic factors (see exhibit 1) pillar #1: business strategy business strategy includes the strategic importance to the company of both the product that's being con- sidered for outsourcing and the.
De très nombreux exemples de phrases traduites contenant make or buy strategy – dictionnaire français-anglais et moteur de recherche de traductions françaises. Historically, many firms have made sourcing decisions-commonly known as make-or-buy decisions-based disproportionately on unit cost, with insufficient regard for strategic or technological issues this cost-focused approach has led to competitive tragedy for many firms, indeed, entire industries managers need. 'make or buy' is another key area of ifm research and our approach has been used with manufacturers across a wide range of sectors deciding what to make in-house and what to outsource is a fundamental part of any manufacturing strategy - yet these decisions are often made reactively and purely on the basis of cost.