...Thinking, viewed 5 September 2012, http://youtu.be/pEIXE9DI9e4.) System thinking is useful to global supply chains because it is an approach to problem solving, by viewing “problems” as parts of an overall system, rather than reacting to specific part, outcomes or events and potentially contributing to further development of unintended consequences. System thinking is not one thing but a set of habits or practices within a framework that is based on the belief that the component parts of a system can be best understood in the context of relationships with each other and with other systems, rather than in isolation.() The company that this analysis will focus on is Coca Cola company, in particular it will focus of the challenges they face in globalisation, industry specific challenges, some risk and failure points, system thinking and the product life cycle. The coca cola enterprise is a globalised company with an iconic brand name that is known around the world. It is a global business with “17 manufacturing facilities spread out around the world, it produces 11 million bottles and cans per year and employs over 13,500 employees”.(http://cokecce.com) The risk associated with globalisation can be broken down in four sections. Supply, demand, operational and security risks. (metzgar ) states “Supply risk which is the distribution of outcomes related to adverse events in inbound supply that effect the ability of the focal firm to meet customer demand ( in terms of both quantity and...
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...example to discuss how ‘the sector matrix’ framework is useful for analysing demand and supply linkages in an industry. The end of the 20th century has experienced rapid changes in the way of trading, due to the expansion of capitalism. The Oxford dictionary defines capitalism as “an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state”. Due to high competition, firms have desperately been trying to reduce costs of production in order to maximise profits. Published in “Competitive Advantage” in 1985, Porter’s value chain is a great example to show how much importance firms gave to the supply side of the market in this period. Porter described the value chain as “a set of products and services linked together in a sequence of value adding economic activities”. In other words, it analyses the stages in which a product is created from raw material until it’s finished, each stage adding value to the product. Gereffi’s ‘Global Commodity chains’ uses the old strategy chains and links them with their political and geographical context, adding a spatial and territorial dimension to the demand and supply in a market.________________________________________ In 1998 in their article “Breaking the Chains? A sector Matrix for Motoring”, Julie Froud, Colin Haslam, Sukhdev Johal and Karel Williams tackled the settled chain concepts by showing its limits regarding complex industries such as motoring or healthcare...
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...International Management Part 1: The Global Manager’s Environment Part 2: The Cultural Context of Global Management Part 3: Formulating Strategy Part 4: Global Human Resources Management The University of Western Australia Strategic Planning and Strategy Strategic Planning • The process by which a firm’s managers evaluate the future prospects of the firma and decide on appropriate strategies to achieve long-term objectives Strategy • The basic means by which the firm competes., that is, its choice of business or businesses in which to operate and the ways in which it differentiates itself from its competitors 63 How does globalisation, risk, political-legal-ethical and culture affect the value chain that a firm manages and operates to create ‘value’ = strategic planning +strategy = STRATEGIC FIT between ‘inputs’ and ‘outputs’ Porter, M (1985) Competitive Advantage: creating and sustaining superior performance. NY: Free Press The University of Western Australia Steps in Developing International and Global Strategies Mission and Objectives Environmental Assessment and Scanning (PEST, PESTEL, Risk) Internal and Competitive Analysis (SWOT) Global Integrative and Entry Strategy Alternatives (Export, JV, Strategic Alliance, CAGE) Strategic Choice, Implementation, Feedback, and Control (Governance) Copyright ©2014 Pearson Education Realize that much of international business is conducted through strategic alliances...
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...Micheal (1025058, tmcf011) Table of Contents Introduction………………………………………………………………3 Stakeholder Analysis…………………………………………………4 External Analysis………………………………………………………7 Opportunities/ Threats……………………………………………9 Industry Analysis…………………………………………………….10 Value Chain Analysis……………………………………………….13 Core Competencies…………………………………………………16 Recommendations………………………………………………….18 Conclusion……………………………………………………………….21 References………………………………………………………………22 Introduction Wal-Mart Stores, Inc. (Wal-Mart) is currently ranked as, not only America’s largest, but the world’s largest company (DuBois, 2011). Wal-Mart’s three business segments, Wal-Mart Stores, Sam’s Club and Wal-Mart International, all operate in the discount variety retail industry. Currently, Wal-Mart’s strategic leaders face challenging issues including declining same-store sales, an invariable customer base, and a crumbling reputation. In analysing the company’s stakeholders, external and internal environments, its opportunities and threats, and its core competencies and competitive advantage we recommend that Wal-Mart: • Place a greater emphasis on the local communities in which it operates in order to stimulate same-store sales; • Improve their supply chain efficiency to supplement international and Internet expansion and Corporate Social Responsibility (CSR) efforts; and • Split underperforming Sam’s Clubs into a separate subsidiary which will offer luxury brands, in order to draw middle- and upper-income customers...
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...POMS Abstract Number: 011-0371 Title: Managing Global Food Supply Chain Risks: A Scenario Planning Perspective A. Deep Business School, Loughborough University Loughborough LE11 3TU, UK Email: a.deep@lboro.ac.uk || Phone: +44.1509 223176 S. Dani Business School, Loughborough University Loughborough LE11 3TU, UK Email: s.dani@lboro.ac.uk || Phone: +44.1509228830 POMS 20th Annual Conference Orlando, Florida U.S.A. May 1 to May 4, 2009 Introduction Food is a fundamental requisite for human existence. An agrarian society shows the simplistic form of existence where agriculture forms the core of the society and is the prime means of support and sustenance. That, however, no longer remains the foundation of most of today’s developed economies where food chains are increasingly becoming complex and multi tiered. The chains start with agriculture and ends ultimately, with household consumption. But the numbers of entities between these ends encompass geographical, economic, political and social extremes. This compounded over uncertainty occurring from natural disasters, climate changes, epidemics and terrorist threats place the food supply chain in a particularly vulnerable position. The recent Chinese milk scare which left thousands of Chinese babies ill after consuming melamine tainted milk powder produced by the Chinese Sanlu Group required urgent action by New Zealand, United States and the European Union to issue product warnings to contain the spread of melamine related...
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...GPNs thus exist within the ‘‘transnational space’’ that is constituted and structured by transnational elites, institutions, and ideologies’. In Levy’s theory, we can find out that more than a economic process of productions, GPNs is also a ‘social’ and ‘cultural’ phenomena in which the geographically differentiated political and social cultural circumstance are also shaped (Coe, Dicken and Hess, 2008). Considering the consumer electronic industry in particular, what we can see now is that numerous branded firms has evolved as the leading force, such as Apple, Microsoft and HP. Meanwhile, amount of emerging economies became to participate into this industry more and more, therefore turning GPNs into a more complex concept in current globalisation. Since then, there are increasing considerations and discussion related to governance of GPNs, trying to...
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...agribusiness solutions for the farmers as well as customers by having fertilizer division. The analysis demonstrates the importance of trade-offs, innovation, product development, line of fit and Information Technology systems in the operations strategy, while showing decentralization structure and effect of it on global companies. Introduction Bunge limited is a successful example for transformation of companies to globalization as Bunge CEO Weisser goal to become the best company in the world in agribusiness and food. Performance objectives indicating market requirements from quality, speed, dependability, flexibility and cost for companies to position themselves in the market while decisions areas for operations strategy as capacity, supply network, process technology, and development and organization for companies to set their operation resources capabilities achieving the performance required in the market to reach and maintain the intended market position as a vital part of...
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...Title of the Report: Zara Case Study Report Name: SeJun Lee Executive Summary Zara is one of the largest international fashion companies in the world, and it belongs to Inditex, one of the world‟s largest distribution groups. This study reviews Zara`s external environment and analyses its internal organisation to make recommendations for improving its core competencies against competitors such as H&M and GAP. This study first reviews the Zara enterprise in terms of PEEST environmental factors, Porter‟s Five Forces and the fast fashion industry life cycle (ILC). The liberalisation of European Union import quotas has had a positive political impact on the fast fashion retail industry. However, rapid style changes generate waste. In addition, recent financial crises have made customers more sensitive to price and tending to buy lower priced goods. However, young people and new Asian customers are more attracted to fashionable clothes. Also, new technology is quickly adopted to survive in a fast-moving market. Using Porter‟s competitive analysis of five forces, the threats of new entrants and substitution are low, and customers‟ and suppliers‟ bargaining power are moderate. However, the intensity of competitive rivalry is quite high because similar fashion firms are competing. Fast fashion has a shorter life cycle for products than most industries. This spurs both creativity and product innovation but demands more efficiency and advanced technology to reduce...
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...International Food and Agribusiness Management Review Volume 14, Issue 2, 2011 Agricultural Value Chains in Developing Countries A Framework for Analysis Jacques H. Trienekens Associate Professor, Wageningen University-Management Studies and Maastricht School of Management Hollandseweg 1, Wageningen, The Netherlands Abstract The paper presents a framework for developing country value chain analysis made up of three components. The first consists of identifying major constraints for value chain upgrading: market access restrictions, weak infrastructures, lacking resources and institutional voids. In the second component three elements of a value chain are defined: value addition, horizontal and vertical chain-network structure and value chain governance mechanisms. Finally, upgrading options are defined in the area of value addition, including the search for markets, the value chain- network structure and the governance form of the chain. Part of this component is the identification of the most suitable partnerships for upgrading the value chain. The three components of the framework are derived from major theoretical streams on inter-company relationships and from the literature on developing country value chains. The framework is applied in a case example of a developing country value chain. Keywords: Developing country value chains, research framework, upgrading Corresponding author: Tel: + 31 317 484160 Email: Jacques.Trienekens@wur.nl 51 2011 International Food...
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...an analysis of the profound changes in the productive structure of global capitalism. In the electronics industry, a new model of outsourced manufacturing has emerged as the centrepiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production is closely linked to the disintegration of the value chain and the emergence of the “Wintelist” (Borrus and Zysman 1997) model of competition and the rise of “fabless” product design companies in key sectors of the IT industry. In contrast to the general perception of the “informational economy” (Carnoy et al 1993, Castells 1996) as service- or science-based, the rise of the CM-model demonstrates that manufacturing still matters in the "new economy" (Cohen and Zysman 1987). This development also highlights the interaction of new information networks with the restructuring of production, work, and the global division of labor in technologically advanced industries. In this paper, we want to take a closer look at the restructuring of production and commodity chains in the assembly of IT-hardware (such as computers, internet switching and telecommunications...
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...they relate.) The globalisation of supply chains Christopher, M. (2011) Logistics and Supply Chain Management (pp. 171-178) 4th ed. FT Prentice-Hall. ISBN 0273681761 These pages describe the main features of globalised supply chains and provide a useful example of the challenges faced by Nike. Rushton , A. Croucher, P. Baker, P. (2010) The Handbook of Logistics and Distribution Management (pp. 23-24) Taschenbuch - Kogan Page. ISBN 9780749457143 This short section considers the need to ‘plan and manage logistics as a complete and integrated system. The global trading system Hoekman, B.M. & Kostecki, M. M. (2009) The political economy of the world trading system from GATT to WTO. 3rd ed. (pp. 7-56) Oxford: Oxford University Press. ISBN 978-0-19-955377-8 This chapter looks at the role of the modern system of international trading agreements in making the globalisation of business possible. Issues for global supply chains Christopher, M. (2011) Logistics and Supply Chain Management (pp.178-185) 4th ed. FT Prentice-Hall. ISBN 0273681761 These pages consider the importance of visibility in meeting the challenges of global logistics. Rushton , A. Croucher, P. Baker, P. (2010) The Handbook of Logistics and Distribution Management (pp. 62-79) Taschenbuch - Kogan Page. ISBN 9780749457143 This chapter describes the key issues and challenges for logistics. Global sourcing and manufacturing Christopher, M. (2011) Logistics and Supply Chain Management (pp. 184-187)...
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...of Globalization in Supply Chain Management 3.0 Advantages of Globalization in Supply Chain Management 3.1 Reduced Cycle Time 3.2 Cost Competitive 3.3 Increase Sales, Profits 3.4 New Markets 3.5 Satisfy Shareholders 3.6 Learn From Others 4.0 Disadvantages of Globalization in Supply Chain Management 4.1 Inefficient and Undersized Transportation and Distribution Systems 4.2 Market Instability 5.0 Conclusion 6.0 References 1.0 Introduction Today’s business environment characterized is by faster technological development, shorter product life cycle, and more intense global competition. Having the right product available in the right place, at the right time, enable the company to compete in this volatile market place. This environment forces companies to actively acquire new way to achieve competitive advantage since a firm competitive advantage is now more dependent on operating efficiency and productivity across functional areas of the organization. Companies are going truly globalization in Supply Chain Management. A change in the way of serving and providing customer needs and wants emerge as a result of economy globalization. The role of manufacturing companies has changed from supplying domestic market to supply international market carried out in business network on supply chain. A company can develop a product in Singapore, manufacture in China and its customers throughout the world with globalization in Supply Chain Management. ...
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...Five ways to simplify your supply chain Summary: The purpose of this article is to provide five ways of simplifying the supply chain, as ongoing globalisation has brought increased complexity to mostly every aspect of the business world, and supply chains are also affected to a large extent. Overly complex supply chains are not adaptable so many companies are facing failures. The only way left is to reduce complexity in supply chains by using different techniques. Companies with more mature supply chain practices can reduce costs and can achieve higher profits. Industry leaders are using this advantage to increase market share and are competing effectively. Innovation in supply chain can transform the industry in which firm competes, companies like Dell, Wal-Mart and Zara has done the same and have met the success. Physical breadth and configuration, relationship with suppliers and customers, management and organizational structure are some of the physical factors which have contributed to the problem. There are number of causes to complexity in supply chains as competitive pressure, lack of an integrated functional approach and time factor. Contrary to this, simplification is one such factor that can impact the entire supply chain, and can yield satisfied customers through following factors. More responsiveness Lower operation costs Consistent quality Enhanced performance Customer Satisfaction = If a process can be made simpler it...
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...Table of Contents Introduction: 1 Overview: 2 Product: 2 The internal analysis 5 Organisation’s mission statement and strategy: 5 Business strategies: 6 Global perspective of Thaibev 8 Global supply chains 9 Core competences criteria and analysis 10 Promotion, advertising 11 Global Marketing 12 Bibliography 16 Introduction: The 20th century has been generally described by a shift in the producing procedure from a vertical integration to a horizontal integration arrangement, advancing the supply shackle method in the intention of obtaining a competitive advantage. Firms are nowadays concentrating on their key competencies – what they do best, by outsourcing resource-consuming activities. “A supply shackle consists of all parties encompassed, undeviating or indirectly, in fulfilling a client request. The supply shackle not merely includes the producer and suppliers, but additionally transporters, warehouses, retailers, and clients themselves. The supply shackle includes all purposes encompassed in consenting and filling a client request. These purposes contain, but are not manipulated to, new product progress, marketing, procedures, allocation, finance, and client service.” Most supply shackles are webs of supply. Globalisation, the progress of Just-in-time catalogue and creation, as well as the aim of economies of scale, have increased this outsourcing phenomenon by onset the gates to cheaper and lower price labour marketplaces in China and in what...
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...programmes only) Have developed specialist knowledge about the theory and practice of your programme of study All of the learning that takes place within modules is designed to enable you to achieve the above goals and your assessment tasks are mapped directly to these goals as outlined in each assessment brief. OUTLINE STUDY PLAN 2012/2013 | | Global Supply Chain Management MO0255 | S01 | Week | Lectures | Lecture Topic | Seminar | Recommended Reading | Directed study | 1 | Lecture 1 | Module Introduction | Making the groups of 4-5 studentsCase Study ReviewIntroduction to operation management (Operation Objectives in the Penang Mutiara Hotel) | Slack, N. (2010), sixth Edition, Chapter 2 | -Reading the TLP carefully-Reading stipulated chapters 1, 2 and 3 of the Slack, N. (2010). | | Lecture 2 | Introduction to Global Supply chain and management | | Slack, N. (2010), sixth Edition, Chapter 13 | -Evaluate the supply chain performance in “Siemens”-Evaluate the global sourcing policy within “Levi Strauss” | 2 | Lecture 1 | SC Performance measurement | Case Study ReviewGlobal Supply Chain managementSupplying Fast Fashion (C13, Slack) | Slack, N. (2010), sixth Edition, Chapters 13 & 17. | -Evaluate the SCOR model and its application in BP, Shell, Siemens AG. | | Lecture 2 | Supplier Development | |...
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