Operations Management is considered to be the main function of any organisation, whether profit making or non-profit making. Whenever organisations are facing difficulties they often look to the operations management department in order to meet the challenges. There are many external factors which impact continuously on organisations operating in any industry and these provide major challenges to organisations.

(i) With reference to an industry you are familiar with, discuss the external factors impacting on the industry and the response the industry had to each of these factors.

(ii) Outsourcing has become the major trend in operations management.

Explain what is outsourcing and discuss which activities firms can outsource and those which firms should not outsource.

Discuss why should firms should control outsourced activities.