Case Document

PT. PARAGON TECHNOLOGY INNOVATION: STRATEGIC MANAGEMENT IN MAKING DECISION AND TRUSTING ITS OUTSOURCE COMPANY

Nurhayati felt reluctant to let the outsource company manage the Beauty Advisor. She was to worry the outsource company could not maintain the quality of their service. But, this step should be taken, since Paragon will have to focus on their main business, the business of make-up. That’s why, she decided to keep the recruiting, training and determining the pay under her company, instead of letting it to the outsource company. Nurhayati will be focus more on developing product quality and quantity, as well as building more warehouse for the upcoming years, she hopes that by such strategic move it would made her company compete in the market, and however, any kinds of strategy would affect them financially.

The purpose of outsourcing Beauty Adviser Staff of Wardah rather than run and managed by itself is to create cost efficiency in the Corporation in order to keep it stays competitive in the market. This purpose has been asserted by Nurhayati as the top management. Since February 2017 the Corporation has outsourced its Beauty Adviser Staff to other party. Then, it is expected that Corporation can enjoy the cost efficiency and it can be more focus on the core-business. However, since the outsourcing of Beauty Adviser Staff just started several months ago, it is not appropriate period to evaluate whether the purpose of the Corporation is achieved or not. To be able to evaluate the Company purpose from financial perspective, at least need one year period considering other related cost. The cost of outsource Beauty Adviser Staff must be smaller than the cost when the staff run and managed by itself. How efficient it is, still needs time to see.

Author

Toto Rusmanto, M.Comm, Ph.D.

Toto Rusmanto, M.Comm, Ph.D.

Dr. Anita Maharani, S.E., M.M.

Dr. Anita Maharani, S.E., M.M.

ETHICAL CONCERNS FOR ELECTRONIC ARTS: A CASE STUDY OF PUBLIC RELATIONS REJECTION IN THE COMPUTER GAMES INDUSTRY

The world of computing is a highly-technical business, with constant innovation a hallmark of the industry. These innovations benefit business as the world becomes more inter-connected; communication channels are opened up, and markets become more globalized. However, forums for globalized communication facilitate a worldwide consumer base with a right to reply that did not exist for previous generations. Complaints are no longer private affairs, as the customer has the ability to take their grievance to the court of public opinion, and the company is forced into defending their position under increasingly tighter scrutiny. This case will examine the dilemma a company can face when their own users turn against them.

Author

Martin James Moloney, BSc Hons, M.I. Kom.

Martin James Moloney, BSc Hons, M.I. Kom.