Question

Q regarding strategic management course

Describe what activities and functions are appropriate to outsource in order to gain or strengthen competitive advantage.

Answer 1

In order to gain competitive advantage it is important that organization is aloof of competition and is using best practices to get various operations associated with business done in most efficient manner. As business cannot do everything by itself , Some of the most appropriate functions and activities that a business should outsource to ensure that it stays afloat of competition are :

Outsourcing the Book keeping function of business :

As attaining a competitive edge is all about efficiency of tasks saving of costs and time of organization,,,,, outsourcing the book keeping or accountancy will prove very beneficial for the organization as account outsourcing will prove to be cheaper than hiring a full time accountant and in the present scenario there are most reliable and trustworthy organizations providing book keeping facility to the business at lowest cost with no compromise on efficiency.

Information Technology (IT)

In this dynamic and ever changing business environment keeping the track of new technological upgradations and advancements is very difficult but not being aware of these improvements can prove challenging for business. And if a new technology is not adopted at appropriate time it might result in Obsoletion or ineffeciency ,,, thus outsourcing can be the best and cheapest way to ,,,, on one hand remain aware of the technological developments and on the other hand, adopt to the latest technology or upgraded systems at the right time to give competitors an edge by being innovative and first to adopt. This way the organization will be able to increase efficiency even before the competitors come across the new technology.

Payroll processing:

One most important factor in business to fight completion and increase productivity us by keeping the employees motivated and to build trust among them through ensuring the timely payments of compensation or other benefits. If business itself cintrols thr payroll process it might result in discontent among employees as some might receive payments fast while other might receive it late. Do as to prevent this from, happening outsourcing can be option to perform this function which direct your affects the employee commitment. Therefore by outsourcing the payroll functions you can efficiently keep A track of payments and applicable tax deductions or loans advances to employees to focus on more meaningful tasks and save cost also.

This will help gaining competitive advantage as employees or top talents will be attracted more to the organization which pays employees full and on time and fufills their requests.

Social Media marketing :

Marketing is no longer restricted to few means, but internet has widen the concept of marketing and for attracting customers social media can play an integral role which will inturn help gain more customer base and allure the potential customers by making them aware of exciting deals and discounts. But this function requires expertise in social media handling and reaching the relevant target market therefore to efficiently perform social media marketing and inturn also save the time of business ,, ,, outsourcing will be a very appropriate option to ensure social media presence of customer is turned an opportunity for business and to fight competitors by attracting potential customers.

Thank you dear student

Hope I explained well

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