Group Members:

Muhammad Faisal MC16-262

Muhammad Usman MC16-278
Muhammad Ahmad MC16-277
Mohsin Jafar MC16-251
ARTICLES
Article Title Author Name
Developing a framework for make‐or‐buy L.E. Cánez, K.W. Platts, D.R. Probert
decisions.

A strategic model for the formulation of R.T. McIvor, P.K. Humphreys, W.E.
an effective make or buy decision. McAleer.

Dimensions of change in make or Anna Moses, Pär Åhlström.

buy decision processes.

Cross-functional make or buy Anna Moses.

decision process ownership.
A strategic model for the
formulation of an effective make or
buy decision
 The make-or-buy decision process is the
process that decides whether to make or
buy an activity or product. Most
organizations today use a combination of
both make and buy strategies (Veugelers
INTRODUCTION: and Cassiman, 1999). Make-or-buy
decisions are one of the most difficult
tasks faced by organizations (McIvor and
Humphreys, 2000) and models have been
developed to help comprehend data.
• Purpose – The purpose of this paper is to explore the area of process
ownership and management in cross-functional make-or-buy decision
processes.
• Design/methodology/approach – Multiple case studies are used
including both a longitudinal in-depth case study and two
retrospective case studies. The data were analyzed using cross-case
comparison as well as analysis through existing literature in the field
of make-or-buy decision processes, after which propositions for
further research were developed.
• Findings – The propositions found concern in the fact that the
function being responsible for the industrial network also should own
the decision process. Letting research and development become a
more powerful decision maker and distinguish between different
types of make-or-buy decisions are also important aspects to
consider.
• Research limitations/implications – The findings are a first attempt
in creating a foundation for future research in the area of process
ownership and management of make-or-buy decisions. A future need
to further develop these propositions is essential.
Dimensions of change in make
or
buy decision processes
 Introduction:

• This paper concerns the process companies go through in order to

make decisions about whether to make or buy parts and activities.
This decision process is part of how companies accomplish
strategy (Nollet et al., 2005), since each make or buy decision
determines a company’s level of vertical integration (Walker and
Weber, 1984). Thus, due to their importance, there exist several
models that help companies structure their make or buy decisions
(McIvor, 2008).
• Purpose – The purpose of this paper is to determine the dimensions
along which make or buy decision processes change over time.
• Design/methodology/approach – The paper is based on a
longitudinal in-depth case study of a large industrial company, where
the data were collected using interviews, documentation and
observations. The data were analyzed using chronological patterns,
and findings were then compared with the literature on make or buy
decision processes.
• Findings – Nine dimensions were found along which the make or buy
decision process had changed over time. The dimensions were cross-
functionality, structure, regularity, formality, awareness, mandatory,
information distribution and management and flexibility. The causes of the
changes were related to a combination of company internal and external
events and contexts.
• Research limitations/implications – The findings should be seen as a first
attempt in assisting in the creation of a foundation for constructing more
dynamic make or buy decision process models. However, since the findings
are based on a single case, they need to be complemented by more
research in order to help determine how context sensitive the identified
dimensions are.
 A strategic model for the
formulation of an effective
make or buy decision
 Introduction:
The aim of this paper is to illustrate that the make or
buy is a strategic decision and has implications for the
overall corporate strategy of the organization by
describing a model which involves analysing a number
of strategic factors. In recent years, many companies
have been moving significantly away from “making”
towards “buying”. However, research carried out by
Ford et al. has revealed that make or buy decisions are
rarely taken within a thoroughly strategic perspective
Purpose:
• Within organizations the make or buy decision is being given more
consideration because of its strategic implications. The make or buy
decision can often be a major determinant of profitability making a
significant contribution to the financial health of the company.

Findings:
The model described in this article proposes a four-stage analysis to help
companies formulate an effective make or buy decision. The purpose is to
alert management to the strategic issues, along with a comprehensive cost
analysis, which should be considered if an effective make or buy decision is
to be formulated.
Methodology:
No formal method for evaluating the Decision. Many companies have no firm basis for evaluating
the make or buy decision. Blaxill and Hout have found that many firms make sourcing decisions
primarily on the basis of overhead costs. The choice of which components to outsource is made by
ascertaining what will save most on overhead costs, rather than on what makes the most long-run
business sense. Companies are failing to consider issues such as:
• Should the company strive to maintain and build its capability in a particular technology or turn to
the best-in-class source?
• Does the necessary capacity exist within the company to provide the item?
• Do the company internal design and manufacturing capabilities lag behind potential suppliers?
• Is the item part of an integrated production route involving several stages of manufacture? If so,
can outside manufacture be satisfactorily co-ordinated with internal production schedules?
• If there is a disparity between purchaser and supplier, how much investment is required internally
to match the capabilities of the suppliers?