FIN486 WK 3 DQ 1

Companies do not advertise their failures and in reality they hide the facts of anything negative because image means dollars. They don’t want investors scared off or stockholders to sell they need to look to the entire world like a company that does not fail or have problems. That being said I did find a little dirt that relates to this topic and my own first had experiences. The dirty little word is “out-sourcing” and the results can be problematic (to more than the employee kicked to the curb). 

In the efforts to be competitive, price wise, larger companies are fragmenting their companies in favor of getting the job done for less than if they had done the job themselves. When there is fragmenting then there is a loss of communication, versatility in the forms of schedules, cost changes, and quality stemming from the (never ending) learning curve due to these new companies (pay low wages) have high turnover rates in employees. Costs are ensued when the customer company wants to make changes that impacts the out-sourced companies contracted schedule. I have witnessed this myself.