Here$$s a concise breakdown of each section for your case study:

$1.$ Economic Environment $($Porter $5-$Forces$/$PESTLE Analysis$)$:

$$ Porter $5-$Forces:

$$ Supplier Power: Moderate. Gilmore handles $30\%$ of printing but wants more control, so there$$s risk of over$-$reliance.

$$ Buyer Power: High. MAC$$s clients expect quick, customized kits, giving them power over service expectations.

$$ Competitive Rivalry: Moderate. There are other suppliers, but outsourcing could create dependency.

$$ Threat of New Entrants: Low. The printing industry has high barriers to entry.

$$ Threat of Substitutes: Low. Printed materials are essential for MAC$$s services.

$$ PESTLE:

$$ Economic: Potential cost savings through outsourcing; risks include inflation affecting costs.

$$ Technological: Dependence on efficient inventory systems; outsourcing may provide tech solutions.

$2.$ Organization Strategy $($SWOT Analysis$)$:

$$ Objectives: Streamline operations, reduce costs, and maintain fast delivery times.

$$ How They Compete: Focus on quality and delivery speed $(24-$hour kit processing$).$

$$ Positioning Strategy: Offer high$-$quality, customized client kits as part of customer loyalty programs.

$$ SWOT Analysis:

$$ Strengths: Established supplier relationships, internal control over kit assembly.

$$ Weaknesses: Limited space, high labor costs, manual inventory processes.

$$ Opportunities: Outsourcing to improve efficiency, free up office space.

$$ Threats: Loss of control over quality, security issues with client data.

$3.$ Functional Organization $($Supply Function$)$:

$$ Supply Function: Currently managed by Kara with storeroom staff handling printing inventory and kit assembly.

$$ Objectives of the Supply Function: Ensure timely delivery of kits $($within $24$ hours$),$ manage inventory efficiently.

$$ Alignment with Company Objectives: The supply function is critical to fulfilling the company$$s delivery and quality promises.

$4.$ Core Concepts and Principles $($Supply Function$)$:

$$ Inventory Management: Stocking materials for promotional kits, balancing long$-$term contracts for discounts.

$$ Outsourcing: Potential to reduce costs, but core principles include quality control, data security, and maintaining quick fulfillment times.

$5.$ Issues, Analysis, and Alternatives:

$$ Issues: Concerns over loss of control with outsourcing, data security risks, maintaining service levels $(24-$hour kit delivery$).$

$$ Impact: Outsourcing could improve efficiency but risks quality and security. Space can be freed up$,$ but control over printing contracts may be lost.

$$ Alternatives:

$$ Outsource partially $($e$.$g$.,$ inventory but not kit assembly$).$

$$ Implement stricter security protocols with Gilmore.

$6.$ Recommendations, Implementation, Monitor and Control:

$$ Recommendation: Proceed with outsourcing, but retain control over critical aspects $($kit quality, client data security$).$

$$ Implementation Plan: Gradually phase in outsourcing starting with inventory management; keep kit assembly in$-$house initially.

$$ Monitoring & KPIs:

$$ KPIs: Delivery times, cost savings, error rates in kit assembly, data security breaches.

$$ Contingency Plan: If Gilmore fails to meet expectations, retain backup contracts with other suppliers for essential printing needs.