DuPont Outsourcing Strategy

DuPont Outsourcing Strategy

The Fortune 1000 company that will be considered is DuPont. "DuPont is a science company dedicated to solving challenging global problems while creating measurable and meaningful value for its customers, employees, and shareholders. Dupont’s portfolio of products, materials, and services meets the ever-changing market needs of various industries in more than 90 countries. The organization unites around a set of core values—safety and health, environmental stewardship, highest ethical behavior and esteem for people.” (Dupont, 2017, para 1) It is important to reflect how outsourcing initiatives have impacted the operations of companies such as DuPont. One-way organizations make strategic moves is by outsourcing. “Outsourcing is obtaining work previously done by employees inside the companies from sources outside the company.” (Pearce, J. & Robinson, R., 2013, p. 294) The organization can then focus on other strategies that would meet organizational goals. For Dupont in 2005, they outsourced their human resource function to Convergys. They are hopeful to realize a twenty percent productivity improvement, which should increase in time. (DuPont, 2005) More productivity improvement can translate to organization growth.

 References

DuPont. (2005). DuPont Selects Convergys to Provide Transactional Global Human Resource Services. Retrieved from: http://www2.dupont.com/Media_Center/en_US/news_releases/2005/article20051102b.html

DuPont. (2017). Our Company. Retrieved from: http://www.dupont.com/corporate-functions/our-company.html 

Pearce, J., Robinson, R. (2013). Strategic Management, 13th Edition. [Kaplan]. Retrieved from https://kaplan.vitalsource.com/#/books/0077807634/

Business Operations Strategy

There is a difference between existing operation and new operation.

If evaluating a company - the operations are analyzed and they might adjust strategies - which could cause operations to change (Losing sales in stores - new strategy for distribution - go online!)

When evaluating opportunity - the strategy must be decided before details of operations can be designed.

Target market - Who

Positioning - How

(Price Strategy - Penetration or Skimming)

(Distribution - Own the channel or contract- push or pull)

(Product - Design features, benefits, and added services)

(Promotions - depending on target market and positioning)

If the basic strategies for these areas are not decided - the new product can't be put into operation.  Once in Operation - then activity is monitored and analyzed - to potentially update strategies - which could change operations.

The definition presented in the article states - "What do we do and why do we do it?"

But for new products/new business - it must be "What are we going to do - and why do it?"

Strategy which most people believe is key to company success - can't happen without details of a plan to implement to reach a strategy.

This is why I say a Strategy dictates the business plan.  

BUT - many people don't separate the Strategic Decisions from the Business Plan. 

In this article - the Organizational Capability is the knowledge assets available to implement a business plan - (people and equipment)

The Resource Architecture is the Competitive Advantage created by using the capabilities within a specific plan to meet company strategies - which are designed to fulfill company vision (Purpose)

The last area - Management systems - covers - do our people do what they are tasked to do?

It think the big difference is the Starting Point - is it an existing operation - or is it something new?