Novo Nordisk is a worldwide Health Corporation with ninety years of novelty and management in looking after diabetic patients. It also leads in the position in hemophilia concern, growth hormonal rehabilitation and hormonal substitute rehabilitation. This paper will analyze the company's decisions and approach regarding site selection, outsourcing, and off shoring functions (www.novonordisk.com). Furthermore, it will examine the impacts of off shoring or outsourcing on quality and the supply chain.
Site selection, Outsourcing, and Off shoring Operations--- Novo Nordisk
Positioning of R&D unit in China was a division of Novo Nordisk's R&D internationalization strategic approach. It visualizes the R&D division in China as a channel involving the technical societies of Europe and China, and being positioned in the Chinese marketplace is a significant milestone to achieve competitive edge over their rivals. Its positive practice of the Chinese marketplace forms part of the rationale why the company determined to develop its R&D operations to China. One more rationale was to give support to current operations, and to make sure the approval of the Chinese regime in the coming years (Boel, 2007).
Site selection of the R&D department in China by Novo Nordisk is well documented for by the OLI frame (BioPortfolio, 2007). The interface of possession, location, and internalization features in the OLI frame reveal the drives for the company in developing a wholly possessed R&D auxiliary in China. On the contrary, Novo Nordisk's activities do not suite into the supplementary realms added in the OLMA structure (modification of OLI), particularly the form of access option and modification features. The interface of the possession, site, and form of entrance and modification features in the OLMA frame does not reveal Novo Nordisk's activities, and particularly the M and A features are not utilized (Guisinger, 2001).