Outsourcing v insourcing: Analyse the business proposition in the case of Chester Racecourse's catering contract

Abstract

This research paper looks at the strategic business process of sourcing and how it has evolved within theory and practice. The main aim of the paper is to comment on and provide recommendations for Chester Racecourse's decision as to whether it takes its catering operation in-house or remains with an external supplier. Based on the study of Chester Racecourse's current situation and a review of the literature, the paper proposes the best fit strategic framework for the sourcing decision and its implementation. This framework is developed using both the existing theories from the literature and also through a qualitative research method. This process uses interviews with key executives both within Chester Racecourse and also in other organisations of different scale and scope that have made similar decisions. The paper then proposes and develops a framework which best suits the specific needs of Chester Racecourse. The sourcing decision-making, implementation and resulting impact on an organisation involve a complex and dynamic process. There are suggested existing frameworks in the literature, although most of these centre on the outsourcing decision as opposed to the in-sourcing equivalent. The paper concludes that Chester's best decision is to in-source this function, as it is so closely aligned with its core product and revenue streams, as well as its strategic aims going forward. There are, however, considerable risks associated with this and the paper puts forward methods by which these can be mitigated.