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.