Step 4: Low-Cost Countries’ and Global Supply Chains’ Risks and Mitigations Strategies Guide

A Risks/Mitigations Guide

Your team will create a guide for decision-making in the appropriateness of outsourcing to low-cost countries. It will identify potential risks common to outsourcing to low-cost countries and potential strategies to reduce those risks. Project taskforce may design this guide as it deems appropriate while honoring principles and practices of virtuous ethics and professionalism. The guide produced will serve as a basis for Step Five of your PBL process.

Instructions for Deliverable

The teamwork section will be graded for each team member, and the individual student’s quantity and quality of participation in the team process will be reflected in his or her score in other assignment criteria.

As a team learning project, the individual’s participation in the processes of the team is as important as the product produced by the team. Therefore, it is very possible that team members will earn different scores for the assignment due to individual differences in the team process. It is important to understand that low performance in the team processes has a ripple effect on the student’s contributions to the product’s development and its quality affecting scores in product related portions of the rubric. This grading approach provides the ethical principle of equity in the assignment’s grades.

1. Review grading practices and the rubric to make sure you understand the criteria for earning your grade. You can learn more about the specific skills being assessed by reviewing the links in Problem-Based Learning Resources.
2. As a team, create a practical and professional decision-making guide that will inform your Board of Director’s report in Workshop Seven of findings and recommendations related to the solution of your team’s PBL problem statement or question.
3. The project taskforce may design this guide as it deems appropriate while honoring principles and practices of virtuous leadership and professionalism.

Step 4: Low-Cost Countries’ and Global Supply
Chains’ Risks and Mitigations Strategies Guide
Rubric (180 Points)
Course: 3SU2024 Vir Business in Global Mrktpl (BADM-708-01B)
Criteria
Excellent
Competent
Needs
Improvement
Inadequate/Faili
ng
Criterion Score
Criteria
Guide
Content
Excellent
Competent
Needs
Improvement
Inadequate/Faili
ng
Criterion Score
120 points
110 points
100 points
84 points
/ 120
111-120
Points
Meets the
requirements
for Competent
and the guide
is expertly
organized. It
provides
decisionmaking quality
data.
101-110
Points
The guide
provides the
following:
Quality data
supported risks
for outsourcing
to country or
group of
countries that
are being
reviewed as
potential
85-100 Points
The guide does
not answer all
the questions
required for
Competent at
an adequate
level. Key
details are too
vague or
insufficient in
number.
0-84 Points
There is little
or no detail
regarding the
required guide
content.
outsourcing
sites.
1. Political
2. Cultural
3. Ethical
4. Labor
5.
Environmental
6. Currency
Fluctuations
7. Other
• Quality datasupported
viable
mitigations for
the identified
risks?
Quality datasupported
potential risks
for global
supply chains.
1.
Criteria
Excellent
Competent
Needs
Improvement
Inadequate/Faili
ng
Criterion Score
/ 10
Transportation
2. Fuel
3. Distance
4. Customs
5. Labor
6. Storage
7. Other
• Quality datasupported
viable
mitigations for
the identified
risks?
Guide
Format
10 points
9 points
8 points
0 points
The format is
The format is
The format
0-7 Points
professional in
form and easy
to apply in
decisionmaking
situations.
professional in
design but
cumbersome
to apply in
decisionmaking
marginally
meets
standards of
professionalis
m and design
ease of use.
Standards of
professionalis
m and ease of
applicability of
guide are weak
or absent.
situations.
Criteria
Teamwork
Excellent
Competent
Needs
Improvement
Inadequate/Faili
ng
Criterion Score
30 points
27 points
25 points
22 points
/ 30
28-30 Points
Interacts very
effectively by
frequently
offering own
understandings
and
perspectives,
26-27 Points
Interacts
adequately to
meet
expectations
described in
Excellent
column.
23-25 Points
Attempts to
work with
others but
demonstrates
limited
interaction or
an imbalance
0-22 Points
Does not
communicate
well and/or
follow through
on individual
responsibilities
to achieve
asking
questions
of
responsibility
team goals.
about ideas,
sharing
responsibilities,
contributing
equally, and
meeting all
timelines.
Demonstrates
highly effective
interpersonal
communication
skills, and
actively
engages in
and
contributions
that impede
collaboration
and product
development.
resolving
conflicts
together.
Written
Communicati
ons
20 points
18 points
17 points
0 points
11-20 Points
APA writing
There are no
more than
16-17 Points
There are no
0-15 Points
There are
criteria are
fully met, and
document is
free of
mechanical
errors.
three
combined APA
and writing
mechanics
errors.
than six
combined APA
and writing
mechanics
errors.
seven or more
combined APA
and writing
mechanics
errors.
/ 20
Total
/ 180
Overall Score
Excellent
Competent
Needs Improvement
Inadequate/Failing
191 points minimum
170 points minimum
162 points minimum
0 points minimum
Role of Students in PBL
Students become problem solvers and critical thinkers for messy issues and reflect
critically on PBL project. The students:
●
●
●
Students to take charge of their own learning in a collaborative environment.
(Savery, Strobel & van Barneveld).
The group members, individually tend to take on complementary roles (Belland,
Glazewski, & Ertmer, 2009) to challenge and support their peers through the
problem solving and learning process.
Students explore their own learning patterns, reflect upon their knowledge
gaps, learn to bridge the gaps through self-directed learning, collaborative
discussions, and conclusive results .
Steps 2 and 3: Researched Q&As Team Report
Team Member
Question
Answer
What are the main
According to Um and Han (2021), the primary
risks associated with
risks of outsourcing to low-cost countries
outsourcing to low-
include political instability, cultural differences,
cost countries?
lower quality standards, communication
Responsible
Mohammad Islam
barriers, and potential ethical issues such as
labor exploitation and environmental harm.
Additionally, supply chain disruptions due to
geopolitical events, natural disasters, and
fluctuating exchange rates pose significant
risks. Effective mitigation strategies involve
comprehensive risk assessment, robust
contract management, and strong relationships
with reliable suppliers.
Mohammad Islam
How can companies
According to Wang et al. (2024), companies
mitigate the risks of
can mitigate the risks of political instability by
political instability in
diversifying their supplier base, establishing
low-cost countries?
contingency plans, and engaging in thorough
due diligence. Understanding local laws and
political landscapes, fostering long-term
partnerships with local firms, and investing in
local communities to build goodwill are crucial.
Companies should monitor political
developments continuously and maintain
flexibility to shift operations if necessary.
Mohammad Islam
What ethical issues
According to Xie et al. (2023), ethical issues
arise from
include labor exploitation, poor working
outsourcing to low-
conditions, environmental degradation, and
cost countries, and
violation of human rights. To address these,
how can they be
companies should implement strict vendor
addressed?
codes of conduct, conduct regular audits,
engage with stakeholders, and ensure
transparency in their supply chains. Sustainable
procurement practices and third-party
certifications can also help maintain ethical
standards.
Mohammad Islam
What are the
According to Kazancoglu et al. (2023),
benefits of
outsourcing to low-cost countries includes
outsourcing to low-
significant cost savings due to lower labor
cost countries?
costs, access to skilled labor, increased
production capacity, and the ability to focus on
core business activities. Additionally,
companies can benefit from government
incentives, enhanced scalability, and potential
market expansion opportunities in the
outsourced country.
Mohammad Islam
How do
According to Um and Han (2021), technological
technological tools
tools such as supply chain tracking systems,
help in managing
statistical analysis, and continuous monitoring
supply chain
software provide real-time insights into supplier
uncertainties in low-
performance, inventory levels, and potential
cost countries?
disruptions. These tools enhance visibility,
improve decision-making, and allow for
proactive measures to be taken. Blockchain can
also ensure transparency and security in
transactions and compliance tracking.
Mohammad Islam
What strategies can
According to Kazancoglu et al. (2023),
companies employ to companies can improve supply chain resilience
improve supply chain
by diversifying their supplier base, creating
resilience when
contingency plans, maintaining buffer stocks,
outsourcing?
and developing solid supplier relationships.
They should also invest in technology for realtime monitoring, enhance communication
channels, and engage in continuous
improvement practices. Building a flexible
supply chain that adapts quickly to changes is
crucial for resilience.
Mohammad Islam
How can companies
According to Wang et al. (2024), ensuring
ensure quality
quality control involves implementing rigorous
control when
vendor selection processes, setting clear quality
outsourcing to low-
standards, and conducting regular audits.
cost countries?
Companies should invest in training for local
suppliers, establish robust quality assurance
teams, and use technology to monitor
compliance. Clear communication and
feedback loops with suppliers can also help
maintain high-quality standards.
Mohammad Islam
What are the
According to Moradlou et al. (2021), cultural
implications of
differences can lead to misunderstandings,
cultural differences in conflicts, and inefficiencies. Companies can
outsourcing, and
manage these differences by investing in
how can companies
cultural training programs, employing local
manage them?
liaisons, and fostering an inclusive corporate
culture. Effective communication strategies can
also mitigate cultural barriers, such as using
clear and straightforward language and
employing translators. Building trust and mutual
respect with local partners is essential.
Mohammad Islam
How can companies
According to Kazancoglu et al. (2023),
address the risk of
companies can protect intellectual property
intellectual property
using legal mechanisms such as patents,
theft when
trademarks, and non-disclosure agreements.
outsourcing?
Implementing strong cybersecurity measures,
limiting access to sensitive information, and
conducting regular security audits are also
crucial. Building relationships with trustworthy
suppliers and continuously monitoring their
compliance with IP protection policies can
further mitigate risks.
Mohammad Islam
What are the best
According to Xie et al. (2023), best practices
practices for
include implementing comprehensive vendor
maintaining ethical
codes of conduct, conducting regular third-party
standards in supply
audits, and engaging with stakeholders to
chains when
ensure transparency and accountability.
outsourcing to low-
Companies should adopt sustainable
cost countries?
procurement practices, provide training for
suppliers on ethical standards, and use
certifications to verify compliance. Continuous
monitoring and public reporting on ethical
practices can help maintain high standards and
protect the company’s reputation.
Hanuma
In low-cost nations,
how can businesses
overcome challenges
to communication
and culture?
Businesses can remove these obstacles by: Offering suppliers and staff multicultural
education.
– Employing managers from the area who are
aware of the cultural backdrop.
Interpreters and cultural liaisons can be used to
improve communication.
– Promoting honest and open communication.
Modifying corporate procedures to honor local
traditions and customs.
Hanuma
What are the
possible financial
gains from
outsourcing to
nations with low
labor costs, and how
can businesses
ensure these exceed
the risks?
Exposure to fresh markets, efficiencies of scale,
and lower labor and production costs are
possible financial advantages. To ensure these
advantages outweigh the risks, businesses
should: – Perform a cost-benefit analysis.
– Putting into practice sensible risk-reduction
techniques.
– Constantly assessing financial results in
relation to goals.
– Constructing solid but adaptable supply chains
(Han & Um, 2024) that can adjust to
developments.
Hanuma
How can businesses
establish reliable,
long-lasting
connections with
Creating frequent interactions and transparent
communication channels is one-way
businesses can develop partnerships.
suppliers in low-cost
nations?
Businesses should draft contracts with
reciprocal benefits and aligned incentives.
They are making training and development
investments for suppliers.
They are showing a dedication to moral
behavior and common principles.
By participating in cooperative efforts for
continual improvement and problem-solving.
Hanuma
What part can
technologies have in
risk management for
contracting to lowcost nations?
Technology is essential because it: – Uses
management and tracking technologies to give
insight into the supply chain in real-time.
– Making use of data analytics to anticipate and
reduce risks.
– Streamlining monitoring and compliance
inspections.
– Improving supplier cooperation and
communication.
– Putting security safeguards in place to
safeguard private information and proprietary
data.
Hanuma
How can businesses
ensure local laws
and regulations are
followed in low-cost
nations?
Businesses can guarantee compliance by: Performing extensive investigations before
choosing vendors.
Engaging regional legal professionals to
manage regulatory obligations.
– Putting in place thorough compliance
initiatives.
– Conducting routine audits and operations
evaluations of suppliers.
– Remaining informed on modifications to local
statutes and ordinances.
Hanuma
What moral issues
must be considered
by businesses before
outsourcing
(Prajapati et al.,
2020) to low-cost
nations?
•
•
•
•
•
Hanuma
What approaches
are available for
reducing supply
chain interruptions in
low-income nations?
Among the tactics are: – Altering providers to
minimize dependence on one source.
•
•
•
•
Hanuma
How can businesses
conduct a thorough
risk analysis before
contracting to lowcost nations?
Keeping buffer supplies on hand to
protect against unexpected delays.
Putting into practice careful planning for
logistics and transportation.
Creating backup plans in case of any
disruptions.
Using technologies for supply chain
awareness to track and handle threats
instantly.
Businesses may recognize possible political,
economic, interpersonal, and technical hazards
to undertake a risk assessment. They can also
do this by:
•
•
•
•
Hanuma
Among the ethical issues are
maintaining equitable pay and labor
practices.
Steer clear of forced and child labor.
Enforcing adherence to ecological
standards.
Regularly audit and inspect suppliers’
premises.
Participating in neighborhood life and
upholding cultural customs.
Assessing the possibility and effect of
these hazards.
Charting the weak points in the supply
chain.
Speaking to participants and specialists
in the area.
Constantly keeping an eye on and
modifying risk profiles.
What are the main
Political unpredictability, economic volatility,
risks of contracting to linguistic and cultural difficulties, logistical
interruptions, problems with adherence to
low-cost nations?
regulations (Vo et al., 2024), piracy of
proprietary information, and moral dilemmas
regarding employment practices and
environmental preservation are among the main
hazards.
What are examples
of companies who
have offshored to
low-cost countries?
How have other
companies built a
sustainable low-cost
strategy?
Katie
Katie
What are potential
HR implications
when outsourcing to
low-cost countries?
Katie
Amazon, Walmart, Salesforce, Apple, Google,
Walmart is an example of a company who has
shifted their supply chain strategies over the
last several years. Adjusting packing and
transportation costs were two ways to decrease
the cost of production in their overall
sustainability strategy (Spicer & Hyatt, 2024).
Human Resource departments are often thrown
for a challenge with a company operates at a
global level. There are laws and policies that
must be followed, and these vary based on
country or state. While offshoring does benefit
corporations, it also creates an underclass
dynamic that HR must consider with respect to
retention and recruitment (Srivastava & Mir,
2020).
Key Resources/References
Han, N., & Um, J. (2024). Risk management strategy for supply chain sustainability and
resilience capability. Risk Management, 26(2), 6.
Kazancoglu, Y., Lafci, C., Berberoglu, Y., Upadhyay, A., Rocha-Lona, L., & Kumar, V. (2023).
The effects of globalization on supply chain resilience: outsourcing techniques as
interventionism, protectionism, and regionalization strategies. Operations Management
Research, 1-18.
Moradlou, H., Reefke, H., Skipworth, H., & Roscoe, S. (2021). Geopolitical disruptions and the
manufacturing location decision in multinational company supply chains: a Delphi study
on Brexit. International Journal of Operations & Production Management, 41(2), 102130.
Prajapati, H., Kant, R., & Tripathi, S. M. (2020). An integrated framework for prioritizing the
outsourcing performance outcomes. Journal of Global Operations and Strategic
Sourcing, 13(4), 301-325.
Spicer, A., & Hyatt, D. (2017). Walmart’s Emergent Low-Cost Sustainable Product Strategy.
California Management Review, 59(2), 116–141.
https://doi.org/10.1177/0008125617695287
Srivastava, B., & Mir, R. (2020). Offshoring and the New Age Employee: Emerging Issues in
Human Resource Management. Journal of Organizational Psychology, 20(6), 33-43.
https://www.proquest.com/scholarly-journals/offshoring-new-age-employee-emergingissues-human/docview/2492325327/se-2
Um, J., & Han, N. (2021). Understanding the relationships between global supply chain risk and
resilience: the role of mitigating strategies. Supply Chain Management: An International
Journal, 26(2), 240-255.
Vo, D. V., Phạm, P. G. M., & Nguyen, T. G. (2024). Outsourcing and entrepreneurial innovation
in a transition economy: the moderating roles of private ownership and government
support. Journal of Small Business and Enterprise Development.
Wang, Y., Li, M., Ma, N., & Zhang, H. (2024). Product Service Outsourcing: Impact of
Environment Uncertainty and Partial Observability. Manufacturing & Service Operations
Management.
Xie, L., Liu, Y., Han, H., & Qiu, C. M. (2023). Outsourcing or reshoring? A manufacturer’s
sourcing strategy in the presence of government subsidy. European Journal of
Operational Research, 308(1), 131-149.