OUTSOURCING ARTICLE Coursework Example | Topics and Well Written Essays - 500 words

OUTSOURCING ARTICLE - Coursework Example Further, imports from the entity were suspended (Larson). This will result into increased pressure on parties in the restaurant industry to take charge of the supply chains. A national survey revealed that 19% of the soil in the country is polluted as well as 44% of the rice that was tested was found to be impure (Larson). This article is important to outsourcing in restaurants in Hong Kong. Restaurants will be forced to thoroughly scrutinize companies that provide their supplies. This mainly applies to rice, meat and other products that grow on the soil. This is following the revelation that 19 percent of the land was polluted. Shanghai Husi Food was owned and operated by the OSI Group that is an Illinois based entity (Larson). It is clear those well-established diners in Hong Kong including Pizza Hut and KFC (Larson). These and other companies that outsourced from the Shanghai Husi Food were forced to stop doing business with entity following the release of the report and the suspension of its operations. The article is relevant to long-term contracts that restaurants and other parties had established with the entity. Being a well known supplier of meat and other products that are used in the food industry Shanghai Husi Food had formed business partnerships that resulted to the formulation of long-term contracts. Following the publication of the report in the last week most of these long term contracts would have to be cancelled. This is owing to the fact that no company would risk continuing to engage with a supplier that was clearly supplying contaminated products. Shanghai Husi Food would be forced to compensate the companies it had entered into long-term contracts with for breaching the terms of the contract. Short-term contracts would have to be terminated as well. This is because the food industry is highly sensitive and any slight