While outsourcing and offshoring is a feature of the new world economy, and there is now inshoring, Professor Liesch believes the concept of ‘globalisation’ does not tell the full story about what is going on. You can have a world famous brand without manufacturing the product,” he says. “Companies can tap into the market to purchase productive capabilities from anywhere in world, which has consequences for the way firms are structured. It is estimated that global revenues from outsourcing exceeded $510 billion in 2010.Īccording to Professor Peter Liesch, an international business expert with UQ Business School, shifts in production patterns are changing the nature of business. Today’s companies can outsource almost any aspect of their operation – from manufacturing and customer service through to management functions. It took 30 years before most other companies caught on and outsourcing became common business practice. Manufacturing in Japan helped their company, Nike, to become one of the world’s largest suppliers of athletic shoes. Knight and Bowerman were ahead of their time. He and his running coach Bill Bowerman, who became his business partner, had to start out selling shoes by an existing Japanese brand before they could arrange for the manufacture of their own designs. However Knight’s letters to Japanese manufacturers went unanswered. It was a concept he explored in a paper written while studying for his MBA at Stanford University. When the US athlete Phil Knight decided to set up a business selling high-quality running shoes in the late 1950s, he had a bright idea – that the company would be more competitive if the shoes were made in Japan. International forces are reshaping the world of business, but also creating new opportunities and a more level playing field for small firms. Master of Tourism, Hotel and Event ManagementĮxecutive Education Show Executive Education sub-navigationĬareers and Professional Development Team Master of Entrepreneurship and Innovation
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