Target corporation has many different location-related decisions to process in more than one aspect. The company must decide on the location of its retail stores, manufactures, and support help. Often the decision to outsource or participate in offshoring can be tempting to a company. Well the impact of outsourcing and offshoring must be examined to ensure that the decision is in the best interest of the company. Every company goes through extensive planning and analyzing when contemplating location-related decisions. Companies Decisions and Strategy The decision making process can be simplified by using the proper analytic technique. One commonly used technique is the strengths, weakness, opportunity and threats (SWOT) analysis. The SWOT analysis is used to evaluate the organizations internal …show more content…
In order to determine the whether an outsourcing activities would have a positive or negative impact an evaluation of the activity should be undergone. This evaluation examines the required coordination, strategic control, and intellectual property characteristics of the activity (Chase & Jacobs, 2013, p.444). The required coordination aspect examines the difficulty to complete the activity with limited interaction due to geographical locations. Outsourcing an activity that would result in a large amount of back-and-forth exchange would not be wise to proceed (Chase & Jacobs, 2013, p.444). Well one that is understood and requires minimal communication would do well outsourced. Strategic control focuses on a degree of loss that would occur if the relationship with the partner was severed (Chase & Jacob, 2013, p.444). The last aspect that needs to be examined is the amount of intellectual property that could be lost through the partnership. Evaluating the impact of moving an activity to an outside source will help aid in the decision making