This analysis will attempt to restructure our business model in order to accommodate challenges of the current economic recession. We, as a company, must identify business processes outside of core functions, which can potentially be outsourced in order alleviate some of the initial investment and overhead needed to support them. As previously stated, the focus needs to be outside those processes which are core to our establishment, and those which alleviate the most cost. The cost consideration can be one of equipment/facilities needed to perform the job/activity, labor required, cost of materials, or any/all of the aforementioned combined. We must be thorough with specification of our performance objectives, type of contract used for each process based on its nature, evaluation criteria used to prospect vendors, single vs. multi-contractor vending, and the timeline necessary to complete all bidding and acquisition. In order for this venture to be successful, or have its best chance at success, we must close bidding, make all acquisitions/contracts, and go live within 90 days.
* OVERVIEW OF PROCESSES TO BE OUTSOURCED:
Our business is simply developing and distributing a magazine whose topic is centered on travel. Our target audience is the middle-income population, and therefore proper consideration must be given to pricing of the product. Through our business models, we have established that this can best be accomplished through low production/overhead costs. Keeping true to our model, and with the help of a struggling economy, we will now be able to hold true to these objectives. The recession has forced our hand in the consideration of outsourcing specific processes. This, coincidentally, has brought us to a consideration which possibly should've been considered from the beginning, as business process outsourcing is a great way to help us exact our primary objectives. Having said that, the core processes have been identified and are centered around the production of the main body of the magazine. This would consist of the articles, photography, advertising (space sold in the magazine), and editing of our product. Therefore layout/design, publishing, printing, accounting, and distribution can all be considered for external processes. Fortunately enough, there are many potential vendors who can provide many of these services within the scope of a single contract. This allows us a negotiating tool with regard to bundling.
Our preliminary research has indicated that layout/design, publishing, and printing are typically bundled through various organizations. There have been enough reputable vendors reviewed to make this a requirement from our standpoint. Details will follow. Accounting and distribution will likely remain separate processes, however these are some of the least expensive processes to consider.
* LAYOUT/DESIGN, PUBLISHING, AND PRINTING:
As mentioned above, our goal will be to solicit assistance with these three functions as a bundled service from a reputable publishing house.
* PERFORMANCE TARGETS/LEVEL OF SERVICE
* Performance criteria for this particular group of services is somewhat difficult. There are some intangibles, with regard to the artistic and design qualities of the work. Sufficient consideration and due diligence will be required in order to develop a method of gauging the "design" of the production. Refer to timeline...
* Publication should be free of error by printing to within >X per XXX. Co-editing will likely be a function negotiated as an addition measurement of quality.
* Units will be produced at the rate of XXX per month, and must be ready for distribution by the 7th day if OCONUS, 21st day if CONUS, of any given month.
* TYPE OF CONTRACT
* Fixed-pricing will likely be our approach to bundling these services. One may be inclined to opt for unit pricing...
Please join StudyMode to read the full document