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can you correct my citations The make-or-buy concept involves a company deciding whether to manufacture a product internally or procure it from an external supplier.
can you correct my citations The make-or-buy concept involves a company deciding whether to manufacture a product internally or procure it from an external supplier. This decision, often influenced by cost, expertise, and availability, determines if the company will produce the product themselves or outsource its production. A company must evaluate the disadvantages of insourcing and outsourcing. The downside of insourcing is high costs, time consumption, and a need for more process control. In reviewing outsourcing, a company must evaluate the negative aspects of communication issues and sometimes issues with the quality of the work. When an organization outsources, it enlists the help of an external organization not affiliated with the company. A company decides whether to make or buy a product based on the total transaction costs incurred while developing it. Companies must consider the total transaction costs incurred in developing products before making a purchase decision. "The Make-buy analysis should begin with evaluating a product or service relationship to the firm's core competencies (Bowersox, 2020, p.126)". The company for which I am conducting my research is Apple, Inc., formerly known as Apple Computer, Inc. Apple is a California-based multinational technology company founded in 1976. Apple has been the world's largest technology company since March 2023 ("Apple, Inc", 2024). In the late 1990s, Apple shifted from insourcing to outsourcing its services. Apple outsources its manufacturing primarily to focus on innovation, design, and customer experience, in addition to its requirement for engineering expertise, flexibility, and supplier availability. In the manufacturing industry, distractions can be a significant problem for management. Due to Apple's focus on innovation, design, and customer experience, manufacturing became a non-priority and was therefore outsourced. This allowed Apple to adapt quickly to market changes. Outsourcing was a way for Apple to increase flexibility, build talent pools, reduce costs, and focus on manufacturing. Apple first approached the strategy with its manufacturing in China to develop specific components and their design with specialists. Apple ensured that the companies it outsourced to adhere to their quality specifications by requiring that the company build factories to meet their product specs. In 2020, Apple decided to move some of its production out of China; several factors influenced this. Apple wanted to diversify its supply chain and mitigate risk. Despite Apple's established supply chain, skilled labor force, and infrastructure, China remains a central production hub for Apple. Apple continues to produce a significant portion of its devices in the country due to the vast manufacturing ecosystem that is hard to replicate elsewhere. Out of the 30-plus countries where Apple devices are manufactured, China contributes 42% of the production. Despite its success with its outsourcing strategy, Apple has faced labor practices and environmental impact issues. However, the company has responded by implementing supplier responsibility programs and committing to renewable energy use. In 2023, Apple declared its plan to resume in-house manufacturing by 2024. Various elements could have prompted this decision to internalize specific processes. The company's financial performance in the first quarter of 2023 could have been more satisfactory, indicating a potential need for improved management and supervision of the production process. Apple can completely control its supply chain by designing its own components instead of relying on several manufacturers to supply them. Apple can streamline communication among staff members and improve collaboration by bringing certain operations in-house, giving it greater control over quality and timeliness. Further, insourcing can help Apple maintain its competitive edge and protect its intellectual property. Keeping some critical op
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