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Business Proposal Author First M Last Institution Name Course Number: Course Name Instructor Name Due Date Business Proposal I. Introduction Our company, which makes devices and is based in Vermont, currently puts together goods in our Vermont plant using local parts and workers. Our CEO has told us that our products are too expensive to compete with other goods on the market, even though we have set up routes for trade and retail sales as well as customer service. The CEO thinks that cutting costs by exporting work around the world and maybe even growing operations overseas could lower costs, make output more flexible, and help our place in the market. As operations manager, it is my job to look at the pros and cons of expanding our sources and activities around the world. II. Global Outsourcing Evaluation Offshoring and offshore are global outsourcing. Offshoring entails transferring a company overseas, whereas offshore outsourcing involves working with a third party. Global outsourcing is most cost-effective since labor costs are lower in underdeveloped nations (Miroudot, 2020). Due to lower salaries, we can produce products cheaper. Outsourcing may also provide tools and expertise not accessible in your nation. A number of nations have talented, professional device makers (Handfield et al., 2020). Foreign employment has risks. Unmonitored vendors may impair quality control. Protecting intellectual property is another concern when doing key work overseas (Miroudot, 2020). Language and cultural barriers might hinder collaboration. Some nations' labor and environmental regulations may be immoral. I recommend a hybrid strategy that keeps core product invention, marketing, and sales in-house while outsourcing component manufacturing and assembly to maximize global outsourcing and reduce risks (Handfield et al., 2020). Outsourcing circuit boards, wire and wiring lines, plastic injection casting casings, and assembly is crucial. Customer service and repairs should remain in the US. China and Taiwan have well-established technological supply lines and can create high-quality, low-cost components for us (Miroudot, 2020). Mexico is nearby and has a substantial industrial base. Due to their skilled labor and inexpensive prices, Malaysia, Thailand, Vietnam, and the Philippines are suitable final assembly destinations. Getting components and personnel from throughout the globe should decrease costs significantly, allowing us to drop prices while maintaining profits (Handfield et al., 2020). We can now compete better with low-cost foreign rivals due to decreasing expenses. As demand grows, we may easily increase output and market share by using international labor pools without hiring more workers or building new facilities in the U.S. III. Global Workforce Management A global workforce will need major changes to management methods and norms Cultural variations in societal values, work habits, communication methods, and hierarchy must be acknowledged and respected. We need explicit standards for virtual collaboration, decision-making, and cross-country problem-solving. It is challenging to set timetables, assess performance, obey employment laws in each nation, and make it simple for new hires to start working and train remotely while managing a global staff. To accommodate time zone variations, we may require more open or asynchronous methods (Handfield et al., 2020). Our Vermont offices can handle certain management chores, but our primary manufacturing centers overseas will require regional leadership in each location. On-site supervisors will monitor daily operations, serve as cultural agents, and aid and interpret (Strange, 2020). For component manufacturing in China and Taiwan and final assembly in Southeast Asia, I recommend recruiting experienced local plant managers, HR, quality, and transportation professionals who speak English and the native languages (Miroudot, 2020). They may hire individuals, manage personnel, enforce policies, and communicate with central leadership. When building our international management team, we should prioritize these qualifications: Multicultural Experience: Managers that have lived or worked abroad successfully with different cultures (Handfield et al., 2020). Understanding ethnic contexts is crucial. A global attitude involves being open to new ideas and adapting your company to local cultures (Handfield et al., 2020). Avoiding ethnocentrism is important. English and one main regional language (Mandarin, Cantonese, Thai, Malay, etc.) must be spoken fluently. This clarifies communication. Tech-savvy people may manage online teams on several systems and platforms using virtual collaboration solutions (Miroudot, 2020). Operations leaders must comprehend overseas shipping, leasing, and supplier management (Strange, 2020). Transformation management involves introducing new procedures and integrating teams from diverse cultures during a major organizational transformation. IV. Cultural and Ethical Concerns A. Hiring international workers may generate moral and cultural issues. Work-life balance, hierarchical structures, individuality vs unity, and how to manage dispute, criticism, and decision-making differ. Misunderstandings or failure to modify may demotivate workers and reduce production. Workplace norms and standards vary widely across nations (Handfield et al., 2020). We must consider hours worked, additional compensation, anti-discrimination regulations, and workplace safety in each location. We might be accused of dodgy labor practices in nations with weaker labor regulations. B. We must teach all of our employees, local and international, about cultural awareness and sensitivity to alleviate these concerns Learning about local workplace ideas, customs, and norms in our company locations is crucial. Managers with expatriate experience may help. We should also ensure that all enterprises follow the same regulations and procedures for worker rights, workplace safety, abuse, and ethical business practices that match global standards (Handfield et al., 2020). These rules must be properly written and translated while complying with national legislation. C. To resolve cultural issues, communicate calmly and politely. Mediation or third-party mediators should be used to discuss and resolve cross-cultural issues Both sides must learn cultural tolerance and adaptability. In certain nations, giving someone unpleasant news or disagreeing with a supervisor is considered disrespectful. We must enforce these standards while allowing free speech. Finally, we wish to facilitate international communication and collaboration. Cohesion comes from finding common ground, avoiding ethnocentrism, and respecting local culture that does not contradict our principles (Miroudot, 2020). V. Communication and Decision-Making Managing a global workforce across multiple nations and time zones requires embracing concepts that make communication and decision-making simpler (Handfield et al., 2020). The command-and-control method with levels is bad for this situation. We should instead use leadership methods that empower more individuals. Servant leadership, which helps and develops team members, may boost remote team trust and motivation. Virtual teams benefit from transformational leadership, which drives them toward a business objective and values (Handfield et al., 2020). A globally linked workforce requires the correct technical infrastructure. Texting, voice/video chat, screen sharing, and virtual whiteboarding must operate seamlessly together. Zoom, WebEx, GoToMeeting, and Microsoft Teams may assist (Strange, 2020). Cloud-based document management software like Google Workspace, Microsoft 365, and Dropbox lets teams worldwide generate and edit files in real time (Handfield et al., 2020). Project management apps like Asana, Trello, and Jira show global workstreams. To make sure that our remote workers can safely and securely access internal systems, data, and apps from anywhere, we will need high-speed VPN connections, as well as secure access and identity management controls (Handfield et al., 2020). To make decisions that include everyone, we should set up ways for teams to argue their points of view and share their thoughts, no matter where they are based. Virtual town halls, skip-level meetings, and open-door practices for managers via video make it easier for problems to come to light (Strange, 2020). Nomadic decision-making, in which the decision-maker moves from one global team to another to get input before the final decision is made, could be used for big strategic decisions (Handfield et al., 2020). This keeps any one area from being in charge. Anonymous votes on important issues through polling apps, followed by open talks that break down the different points of view, can encourage people to be honest and listen to minority voices (Handfield et al., 2020). Putting the reasons behind choices in shared sources makes things clear. In the end, the leadership team needs to show how to be welcoming and create a safe space where everyone feels like they can share their thoughts, no matter what country they are from. VI. Competitive Advantage Analysis One way to make us more competitive is to expand our activities around the world by outsourcing and using foreign labor markets (Handfield et al., 2020). We can change our cost structure so that it is the same as or better than competitors who bring goods in from other countries by focusing on lower-cost areas. This lets us use the money we save to make our prices more competitive. Our research shows that shifting the production of parts and assemblies could cut our direct manufacturing costs by 30 to 50 percent compared to what we pay now in the U.S. (Handfield et al., 2020). When we use contract manufacturers instead of our own set sites in the United States, we can quickly increase or decrease production based on our needs. Switching to a flexible global supply chain gives us the flexibility to quickly gain more market share as customer demand rises and falls, all while keeping our running costs low. Making things closer to big customer markets could speed up the time it takes to get them to market (Strange, 2020). VII. Summary of Recommendations I suggest that we use a mixed global sourcing model in which we hire a network of foreign wholesalers and contract makers, mostly in China/Taiwan and Southeast Asia, to make parts, subassemblies, and the whole product (Strange, 2020). The main places where we develop, market, and sell our products would still be in Vermont. The major benefits would be a 30–50% drop in manufacturing costs from being able to reach labor markets with lower wages, a better ability to compete on price, more production flexibility to meet demand, and being close enough to foreign markets to increase sales (Handfield et al., 2020). But this approach comes with risks when it comes to quality control, protecting intellectual property, getting past cultural differences, and handling a global workforce and supply chain in an honest way. Dealing with these risks through strong policies, procedures, and tools will help us be much more cost-effective and quick to respond to market changes, rather than being pushed out of the market (Strange, 2020). I am sure that going global with our business plan is the best way to get growth and profits going again, especially since our industry is becoming more competitive and prices are going up. I would love the chance to talk about this strategy plan in more detail. References Handfield, R. B., Graham, G., & Burns, L. (2020). Corona virus, tariffs, trade wars and supply chain evolutionary design. International Journal of Operations & Production Management, 40(10), 1649-1660. https://www.emerald.com/insight/content/doi/10.1108/IJOPM-03-2020-0171/full/html Miroudot, S. (2020). Resilience versus robustness in global value chains: Some policy implications. COVID-19 and trade policy: Why turning inward won’t work, 2020, 117-130. https://www.ceris.be/wp-content/uploads/2021/10/Covid-19_and_Trade_Policy.pdf#page=128 Strange, R. (2020). The 2020 Covid-19 pandemic and global value chains. Journal of Industrial and Business Economics, 47(3), 455-465. https://link.springer.com/article/10.1007/s40812-020-00162-x 10