Executive summary
With the development of globalization and information technology, outsourcing has gained great popularity all over the world. On the other hand, virtual works have more chances to find freelance works with the development of outsourcing. The reasons for outsourcing includes low operational and labor costs, tax breaks, to gain more global and local market share, to reduce risks, to move to higher segments of the value added chain, to serve for innovation as well as to focus to accelerate business transformation. Now the Brammer is encountered with a problem of management that the purchasing and management of spares for the daily operations, maintenance and repair of production and manufacturing equipment is often a complex, time and resource consuming issue for most organizations. The Brammer is considering whether they will outsource the management of spares.
This research will focus on identifying a management problem of the Brammer and designing an appropriate business research strategy for success in business. What is more, the essay will choose a qualitative research methodology to investigate the organizational management problem of the Brammer.
1. Background information
As one of the Europe’s leading supplier of quality industrial maintenance, repair and overhaul products, the Brammer has enjoyed good reputation all the world. With its head quarter in England, the Brammer operates out of more than 300 locations in 15 countries. The aim of the company is to supply a range of solutions which are designed to help the clients to cut down the total cost of component acquisition.
Even faced with the globally economic crisis, the Brammer has kept a stable increase in 2008. The following statistics will present the outstanding achievement of it from 2006 to 2010:
Brammer Fundamentals
Year Ending Revenue (£m)Pre-tax (£m)EPS P/E PEG EPS
Grth.Div Yield
It is predicted that in the fiscal year 2011, the Brammer will still keep a tendency of increase in the revenue.
2. Analysis of the symptoms of the management problems.
However, with the growth of the company, some management problems occurs which affects the continuous development of the company.
For most organizations, without proper management, the purchasing and management of spares for the daily operations, maintenance and repair of production and manufacturing can turn into a complex, time and resource resourcing issue. This problem also concerns Ian Ritchie, Brammer’s UK’s managing director.
In order to cut down the cost of such purchasing and management and focus on the core business of the Brammer, he has taken into consideration outsourcing such purchase and management to other small companies, with the more and more popularity of outsourcing and outsourcing websites.
However, this has not been approved by the board of directors. But it will be discussed as a good idea to cut down the cost of purchasing and management.
