Bus 525 Strategic Management in a Globalized Society

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operational expenses. The FJNPL takes the responsibility of providing skilled and competitive people as outsourcing to EB Pearls. All the procedures are carried out according to their agreements. Thus, First Job Nepal is creating value chain for EB Pearls.

The outsourcing agreement between United Distributors Nepal and Kantipur Management, and EB Pearls and First Job Nepal is working excellently well. There is nothing wrong going on between them till date. However, there are some contradictions that may happen, which may threaten their competitive capabilities. They are:

1. Feeling of selection of wrong outsourcing agents for the business houses

2. Conflict between them regarding HR solutions and payment issues

3. Poor service of the Outsourcing Companies

4. Agreement issues of employees, and

5. Feeling of losing clients for the HR Companies which may negatively impact of their reputation.

Strategic Alliance

A strategic alliance can be termed as “a specific horizontal design of inter-organizational relationship of two or more organizations, collaborated in order to achieve one or more common strategic objectives, organizations remaining independent” (Glaister, K.W., & Buckley, P.J, 1996). In the case of United Distributors and Kantipur Management, one cannot see any strategic alliances because of them are independent, i.e. both are not solely dependent upon each other for work.

Similarly, in the agreement of EB Pearls and First Job Nepal Pvt. Ltd. , we cannot find any strategic alliance. However, both of them work for each other, but are not inter-dependent. This means that they can also survive without working for each other.

All the above companies have different goals and objectives. The UDN and EB Pearls can manage their HR solutions without outsourcing also. Therefore, these companies are not using strategic alliance for outsourcing.

Conclusion

From all the above information one can acquire needed information about what is outsourcing, how does it works and how it is prevailing in Nepal. Moreover, I understood how the value chain activities are working for the company’s outsourcing. In my conclusion, i want to add that there are no such outsourcing agreements in the books of UDN and KMPL, as well as EB Pearls and FJNPL, which may threaten any of the companies’ competitive capabilities. Lastly, it can be concluded that none of these companies use strategic alliance for managing their outsourcing.

References:

Overby, S. (2007) ABC: An introduction to Outsourcing. Retrieved from: www.CIO.com

Porter, M.E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance. Retrieved from: https://www.mindtools.com/pages/article/newSTR_66.htm

Glaister, K.W. & Buckley, P.J (1996) Strategic Motives for International Alliance Formation. Journal of Management Studies 33(3), 301-32.

Retrieved from: http://uniteddistributorsnepal.blogspot.com/2012/11/united-distributors-nepal-pvt-ltd.html

https://www.ebpearls.com.au/about/

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