A real-life example of outsourcing is Apple company, which outsources manufacturing processes to Chinese companies. For example, Foxconn is a firm that produces Apple gadgets, such as iPhones and iPads (Lair, 2019). Business process outsourcing involves the transfer to outside organizations of some business procedures that burdens the enterprise. Companies mainly outsource accounting, legal support, marketing, and personnel management (Lair, 2019). The transfer of some functions and processes to the category of non-core allows the company to reduce the number of costs for their implementation.
It is necessary to calculate the payback period of outsourcing, because the period from which the initial investment and other one-time costs are covered by total income. In case of Apple, payback period of manufacture outsourcing by Foxconn was approximately three years, because the combined investments were made from both Chinese government and Apple itself (Lair, 2019). Payback period should highlight the special role of outsourcing in obtaining a synergistic effect. The outsourcing results in cost savings because the multitasking can severely hinder the performance (Gupta, 2018). One of the main reasons for the outsourcing of enterprises is due to the desire to obtain a synergistic effect, which forms the interaction of two or more business entities, the cumulative result of which significantly exceeds the sum of their achievements.
Outsourcing of enterprises may provide savings due to the concentration of the part among the enterprise functions, for example, marketing in specialized firms. It is also possible to transfer the sales function to firms and have an extensive network of distributors (Gupta, 2018). In this case, economies of scale result from the elimination of function duplications by various employees in enterprises or the service centralizations in firms that serve several enterprises at once. It should be noted that it is not easy to organize the outsourcing of enterprises and achieve economies of scale.
Disaster Drills and Exercises
Disaster drills and exercises must be conducted in the workplace, and they are worth the expenditures because the cost of life loss is significantly higher. Unprepared personnel can lose an outstanding and valuable employee if the disasters drills are not provided. The etymological meaning of disaster drills lies in activities aimed at protecting and taking measures for the preservation and safety of a person in the process of applying labor, in the sense of spending physiological and mental abilities (Hanfling, 2013). As a social phenomenon, disaster drills are a multifaceted activity of the state, officials, public organizations, and citizens, aimed at maintaining the highest level of people’s working capacity for the longest amount. It is also done to create working conditions for a person, ensuring the possibility of his/her active participation in managing state affairs, in social and political life, in improving political, cultural, and technical level (Burke, 2015). The disaster drills provide a continuous increase in labor productivity and the gradual transformation of labor into the first vital need.
From an ethics standpoint, it is mandatory for an employer to fund disaster drills and exercises in order to ensure the safety of the personnel. Labor law shows an interesting feature arising from the harmonious combination of private and public law regulation methods (Burke, 2015). If the norms of other institutions transfer to the employer and the employee gain more and more powers to independently examine key activity issues, then the standards of disaster drills have little changed compared to peers from the past (Hanfling, 2013). There is practically no place for the discretion of the parties, and this is the correct position of the legislator. The above principles should be fixed in the most important ethical industry acts.
References
Burke, R. V., Goodhue, C. J., Berg, B. M., Spears, R., Barnes, J., & Upperman, J. S. (2015). Academic-community partnership to develop a novel disaster training tool for school nurses: Emergency triage drill kit. NASN School Nurse, 30(5), 265-268.
Hanfling, D. (2013). Health care preparedness funding: Are we inviting disaster [Blog post]? Web.
Gupta, R. S. (2018). Risk management and intellectual property protection in outsourcing. Global Business Review, 19(2), 393-406.
Lair, C. D. (2019). Outsourcing and the risks of dependent autonomy. SAGE Open, 1(1), 2-7.