report libre
COMP-1601
Outsourcing & IT Management
Precision Electronics
Case Study
Prepared By:
Saad Yehia El Ashmawi
Submitted On:
10 May 2013
Page | 1
Table of Contents
Key Issues ................................................................................................................................................... 16
What to Outsource ........................................................................................................................................ 8
How to Outsource ....................................................................................................................................... 10
Conclusion .................................................................................................................................................. 15
References ................................................................................................................................................... 16
Page | 2
Key Issues
Family Business
Precision Electronics is a family business where the four directors who run the company are from the same family. There are many disadvantages of running a family business that could cause a lot of financial damage to it.
Family business usually filled with mixed interests; there is a risk that the family member’s interests would be mixed with the corporate interest. Any misunderstanding or issues between the family members could also be brought back to the office. It’s a possibility that the family personal expenses could be deducted from the business as well, which will cause an extra burden on the business and unclear financial status.
Another fact about running a family business that sometime family members might become too comfortable to do their jobs efficiently, from the perspective that they work with other family member close to them. Of course this would result to poor performance, lack of any formal planning and will definitely affect the company budget/revenues.
As
Outsourcing & IT Management
Precision Electronics
Case Study
Prepared By:
Saad Yehia El Ashmawi
Submitted On:
10 May 2013
Page | 1
Table of Contents
Key Issues ................................................................................................................................................... 16
What to Outsource ........................................................................................................................................ 8
How to Outsource ....................................................................................................................................... 10
Conclusion .................................................................................................................................................. 15
References ................................................................................................................................................... 16
Page | 2
Key Issues
Family Business
Precision Electronics is a family business where the four directors who run the company are from the same family. There are many disadvantages of running a family business that could cause a lot of financial damage to it.
Family business usually filled with mixed interests; there is a risk that the family member’s interests would be mixed with the corporate interest. Any misunderstanding or issues between the family members could also be brought back to the office. It’s a possibility that the family personal expenses could be deducted from the business as well, which will cause an extra burden on the business and unclear financial status.
Another fact about running a family business that sometime family members might become too comfortable to do their jobs efficiently, from the perspective that they work with other family member close to them. Of course this would result to poor performance, lack of any formal planning and will definitely affect the company budget/revenues.
As
References: Craig E. Aronoff, John L. Ward, Preparing your family business for strategic change Melody J. Hsiao, The impact of buyer-supplier relationship and purchasing process on the supply chain performance: a conceptual framework, University of Sydney Page | 16