Monday, March 23, 2015

SSD MODEL IS NO LONGER SUSTAINABLE - PART V

Point # 9

In the seventies and eighties the big companies had their own security staff, their own drivers, their own cooks. When the economy opened up and foreign companies came in, in order to cut costs, the companies:

(a) Gave the security work to security agencies
(b) The canteens were handed over to contractors to be run by them.
(c) Drivers were sent out and companies found that hiring vehicles from Travel companies was
economical.
(d) Companies maintaining maintenance departments gave the maintenance work to contractors.
Nowadays for Air-conditioning companies we have the Authorised Service Franchisee.
(e) Finally companies found that instead of making an air-conditioner found that importing
them was cheaper and the quality better and liked by people. This is the extreme case of
MAKE OR BUY decision where company finds that the buying decision is better than the
making process.

                                                                                     to be continued...

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