Summary
Situation
J-trading is a Japan controlled, US based organization that has its main focus upon the commodity trading. The trading operations of the company are spanned over East and North America. The operations of the organization involves the workforce of around 350 employees. The company is currently effected by the consequences it is going through caused by the lacking efficiency in the IT infrastructure and help-desk functions. Employees of the company are not able to satisfy their ambitious needs due to normality of their operational requirements. The employees of the company are not motivated enough in the work they are presented with, by the higher management. The normality of the tasks assigned to the employees is not being appreciated by the employees which is resulting in decreasing the quality of their operations and the levels of their costs are increasing.
J-TRADING is discussing upon the decision of outsourcing the functions. The decision process is not easy for them as this would require efficient planning and implementations in order to sustain their operational efficiency. The decision for the company will have its own level of difficulties and complexities.
Questions
- How the outsourcing will help in increasing the competency of the company?
Outsourcing of these operations from efficient vendors will not only enhance the financial performance of the company, but it will also help the company in creating strong relations with the customers.
- How IT Infrastructure will help in decreasing cost to the company?
IT infrastructures should be efficient enough to meet the requirements for operating the business functions efficiently. IT has become an important aspect of any nature of the business and the IT infrastructure cannot be ignore by the company or else the company might face consequences in reaching its customers.
Hypothesis
H1-Outsource the operations which are being perceived as mundane by the employees of the organization.
Testing: in the commodity trading industry it is very important to keep your customers satisfied with your business operation. If the operations of the company are not efficient enough the company might lose its share of the market. Outsourcing of these operations from efficient vendors will not only enhance the financial performance of the company, but it will also help the company in creating strong relations with the customers. If once the operations of the company are not able to satisfy the customer the company might have to go through consequences as the customer would be willing to share his experience with the company, with other people (Craig, 2006).
H2- enhanced IT infrastructure will enhance the operational efficiency and decrease costs.
Testing: IT infrastructures should be efficient enough to meet the requirements for operating the business functions efficiently. Outsourcing of this aspect of the company will not only enhance the efficiency of the company but will add-up to the value being provided by the company to its customers. This will inspire the customers to look for better offers and will attract them towards choosing the company over the competitors.
Proof and actions
The commodity industry is heavily dependent upon the quality of the operations of the company and the level of their efficiency. If the operations of the company are not well managed enough the company should develop strategies to overcome the managerial issues. If the company is not able to efficiently conduct any part of their operations, the company heads should focus on outsourcing specific functions, it will increase the costs for the company but it will majorly increase the quality of the operations as well (.G.Neumann, n.d).
The outsourced entities will support the organization’s operations and the level of the quality as well. Outsourcing of these operations from efficient vendors will not only enhance the financial performance of the company, but it will also help the company in creating strong relations with the customers.J-TRADING Case Solution
Alternatives
It included the strengths, weaknesses and risks associated with the given recommendations.
The implementation of the recommended actions will enable the company to perform their operations efficiently and effectively. The implementations will not only enable the company but they will also increase the revenue levels for the company.
Outsourcing of such operations will enhance the quality of the operations of the company which will directly affect the sales and revenues. A major reduction in the costs of the company’s income statement will be experienced due to the outsourcing of operations............................
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