Business & ManagementIB

Reorganising production

Reorganising production...Reorganising production nationally and internationally (AO3) Firms may choose to reorganise their production nationally and internationally by changing the location of their operations or contracting with external specialists...
Reorganising production

Outsourcing transferring internal business affairs to an external organisation.


  • Core activities can be focused on.
  • Quality can occur, despite lacking certain skills.
  • Helps cut production costs for contractors.


  • There must be mutual trust between the business and the subcontractor.
  • Quality control is passed onto outside parties, therefore standards may not be met.
  • Outsourcing requires effective communication and coordination.
  • Can cause uncertainty due to restructuring and staff redundancies.
Offshoring a type of outsourcing which involves relocation business  functions and processes to an overseas organisation.


  • May be cheaper to operate in an LEDC.


  • Offshoring has been associated with unethical practices.
  • Quality assurance becomes difficult.
  • Susceptible to economic and political instability.

Insourcing using an organisations own workers and resources to complete tasks that would have otherwise been outsourced.


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