In week five the sentence that I found significant from chapter 16 of ‘ Global Sourcing and Procurement ’ is that firms are no longer limited by their capabilities because they can rely on available skills whether they are in ownership or not (Jacobs, 2018, p.403). This line implies that organizations do not need to own expensive machines or have a number of staff members to produce the desired number of good or services even when they are not required. Investing in a one-time resource can be considered as misuse of funds especially if a company has little capital. Any start-up business should focus on the immediate needs for its production to gain funds for business development.
Suppose an individual wants to set up a restaurant in a new location, he or she can start big or small depending on the market knowledge that he or she has of the given area. However, while obtaining resources, it is essential to consider the primary ones that will generate funds for the secondary requirements. For instance, one equipped chef with skills of preparing the local’s main dishes is enough along with two supporting staff members in the kitchen. Decorating the place is also essential for attracting the customers. Nonetheless, for the business to boom, marketing has to be incorporated. Suppose the restaurant lacks funds to employ permanent waiters and waitresses, yet it has funds for marketing, it should then proceed to outsource the workforce from a human resource company as it does its marketing. At a personal level, therefore, I would not rush to purchase a washing machine (for instance), before I can satisfy other urgent needs such as a computer for work. In the event that I run out of time to do my laundry, I can (meanwhile) seek help.
Delegate your assignment to our experts and they will do the rest.
In conclusion, when setting up a business, it is essential to give priority to the primary needs. Notably, nowadays, people can outsource what they need from other firms to support the growth and development of their businesses. Business owners should not rush to purchasing secondary requirements of their companies before the fundamental needs are fulfilled.
References
Jacobs, F. R. (2018). Chapter 16 & 19. In Operations and supply chain management .
