Question
An example of an organization that owns most of its value chain is Starbucks; one of the most renowned Coffee Shops world wide (Bajpai, 2022),
An example of an organization that owns most of its value chain is Starbucks; one of the most renowned Coffee Shops world wide (Bajpai, 2022), which controls almost everything in the processes that involve acquiring and providing its high-end products to its consumers. It has its own coffee bean buyers that procure coffee beans directly from the farms, and does not follow the traditional franchising concept, yet rather prefers licensing the sale of its brand by other big, known entities, to maintain its control over its products. As a result, it mainly owns its own stores and generates the biggest revenue from them, compared to its licensed stores (Bajpai, 2022), via direct sales to its own customers, with no middle channels in between. It even handles its own "Marketing and Sales", by relying on providing samples of its new products at its own point of sales, company-owned stores.
On the other hand, several highly successful companies outsource several aspects of their operations in the favor of cost efficiency, with examples such as Google and Facebook, which outsource many of their operations such as IT service providers, analytical consultants, customer support providers, IT technicians, and content moderators to the Philippines. (Outsource Accelerator, 2021).
As for my previous employer, which was one of the main alpha-banks in the Middle East Region, Bank Audi S.A.L., they used to outsource External Audits and Consultants when it came to restructuring or applying mandatory foreign policies. Once the necessary changes were applied, they were then policed and controlled by the Bank's Internal Audit Team. They also used to outsource IT support from System Vendors upon acquiring and installing new systems. Once the new systems are launched and live, the technical service would then be handled in-house by the Bank's own IT Team.
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