Vol. 1, No. 3, Fall 2005
| International Corporate Management with Outsourcing The International Corporate Management with Outsourcing simulation is targeted at integrative business courses at the MBA and EMBA level. It can provide participants with a profound understanding of the challenges of managing business activities across multiple firms in a supply chain. With the addition of the outsourcing module, this version of International Corporate Management is possibly the most advanced business simulation in the world. For instructors looking to provide new intellectual mountains for students to climb, it should prove ideal. It is also ideal for instructors who want a challenge that will last an entire semester (ten to twelve quarters or decision periods). Starting in the 5th quarter, students can outsource part or all of their company's production to another firm in the industry. By the same token, some teams can become suppliers to other firms. The outsourcing element provides the students with a full set of supply-chain options, allowing them to make investments to speed up and better coordinate the exchanges between business partners. After a series of such expenditures, suppliers will be able to fulfill a reseller's orders without inventory ever touching the reseller's warehouse. However, achieving this level of supply-chain coordination requires extensive negotiations and the development of trust between the parties. The supply chain looms ever larger as a component of today’s business. The outsourcing component can help business students appreciate the complexities of supply-chain management. It's very easy for students to believe they can develop a business simply by outsourcing everything. In reality, it isn't so easy to do. It requires more than the desire to outsource. It takes lots of work, lots of time, and lots of building up of relationships and channels. The execution of an outsourcing strategy is very complex and there are many conflicts. Students must learn to balance selfishness and short-term gain with the potential for greater reward in the long run, assuming they go through the process of setting up the outsourcing. It's about learning to look at the end result, focusing on the win-win solution, but recognizing that it's not easy to get there. It takes negotiation, cooperation, and coordination. It's important to recognize that even with all the hard work, things can still go wrong. One important skill students will practice in the outsourcing module is negotiation. Students will learn to negotiate to achieve desired ends. It's a stimulating activity, but it can be frustrating. They must learn about the setting of priorities and attainment of mutual goals.
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