Virtual Organization Strategy

Virtual Organization Strategy

Matthew Johnston

Fin/370

3.1.2013

Rob Shah

Virtual Organization Strategy

Globalization is a very important consideration for companies in today's economy, especially for companies like Baderman Island Resorts, who service a large variety of nationalities as well as offer many different items for resale on the Island, itself.

One of the more important considerations for Baderman is whether or not to outsource to other countries for their small purchasables. On a small Resort Island, it would be unfeasible for Baderman to manufacture its own products, which means that their only option outside not offering products those customers may need, is to globalize and outsource to other countries who can provide the products and luxuries that are wanted.

This decision to outsource also comes with other important considerations. For example, from which countries do they choose to buy, and more importantly, what quality. Different countries offer the same products; however, we know from experience that not all like products are created equal. There can be a huge fluctuation between quality and cost between different manufacturers from different countries.

To best serve Baderman Island Resorts, the executives need to decide which option is the best for their business if they want to find the most profit through their expansion into the global market. This will result inevitably in Baderman changing their spending habits as new and more advanced products become available on the global market.

For example with the onset of Globalization, Baderman is left with a significantly larger selection of products to choose from. Since they are an Island Resort and want to portray an atmosphere of elegance and class, they will likely find themselves buying top-of-the-line products for their resort. This will be a significant increase in the companies liabilities, which is risky, however; it also opens up the resort for higher profit margins, assuming that they can find the best pricing on the products they buy.

There are many negative aspects of Globalization, as well. However, because of the nature of