...Abstract This paper describes the goal of Bunge Limited Co. and what techniques did they use in their operations to achieve the goal. Looking to the history of the company starting in Europe and moving to Americas, how transformation from a small company leading the business locally to a global company in the market was done. The company strategy is a practical model of trade-offs which helped them to focus back on their core business, decentralization structure was inherited in Bunge from the days it was privately run that had shown benefits for Bunge in the markets where they exits while in the later stage of transformation challenges raised after the acquisition of ‘Cereol’ that gave Bunge more balance globally helping it becoming a global company working on the goal of becoming the best agribusiness and food company in world. Product development had a big role in Bunge giving total 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...
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...Global supply chain management Lecture 1: chapter 1 and 2 Overview Course and Supply Chain Management & Logistics A supply chain encompasses all activities associated with the flow and transformation of resources into goods and services and related flows of information. In this lecture, various nodes in a supply chain are treated. It will be explained in which ways flows of materials and information in supply chains can be managed. Logistics is defined as a part of the supply chain process. The logistics process can be divided into two parts, namely materials management and physical distribution. For both parts, decision problems and cost aspects are examined. Design and logistics aspects of products and services will be compared. We will discuss how to formulate objectives and constraints to measure the performance of logistics processes. Furthermore, several logistics control aspects are discussed. Finally, it is explained in which way logistics activities can be changed to operate abroad. Characteristics and specific aspects of global supply chains will be treated. Chapter 1 Operation and supply chain management = the design, operation and improvement of the system that create and deliver the firm’s primary products and services. Manufacturing process: would produce some type of physical product Service process: would produce an intangible process. Supply chain = refers to the process that move information and material to and from the manufacturing and...
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...all of their business operation. Running a sustainable business means running any organization that participates in environmentally friendly or green activities to ensure that all processes, products, and manufacturing activities adequately address current environmental concerns while maintaining a profit. For this project’s purpose, I decide to look at some of the characteristic of Hewlett-Packard’s key functional areas to better understand why HP is known to be the leader in conducting a green business. For HP sustainability is a powerful competitive advantage. It is an integral part of their business strategy. HP’s ability to link sustainable programs to reducing costs, increasing revenue, and mitigating risks is one of the most effective in the world. HP is committed to sustainability, because it knows that this approach results in better products, while increasing profits and decreasing environmental impact. The following sections will examine the degree of commitment dedicated by HP to creating a sustainable business. All seven sections look at the different innovative ways that HP has come up with to reduce its negative impact on environment, raise customers’ awareness about environmental issues, and promote the use of environmental friendly products in consumers’ homes. Product design Product design is the process of creating a new product to be sold by a business to its customers. It is the efficient and effective generation and development of ideas through a process...
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...Logistics has developed as an important area or function of business since World War II. It has gone through several phases of development in achieving its present status. It is a critical part of supply chain management. The coordination and, perhaps, integration of the logistics systems of all the organizations in a supply chain are necessary requirements for successful management of the supply chain. (Bowersox etc, 2007) Logistics can be divided into two parts: domestic logistics and international logistics. Difference between Domestic & International Logistics can be said to arise mainly on account of the three major factors : 1) Logistic costs is International Business is much more higher than the domestic business 2) The Logistic Mechanics are much more complex in the context of international logistics than the domestic logistics 3) The political, cultural and institutional factors connected with international logistics are of considerable importance whereas these are usually not of much consequence in the context of domestic logistics.(Networker, n.d) Globalization of the world economy and our logistics has advanced at an almost unbelievable speed. Growth in world trade, and corresponding cargo container movements, continues to substantially exceed overall economic growth, meaning that trade volumes are doubling every 5-7 years.(Hill etc, 2001) There are some roles of global logistics: • Globalization helped in doing business beyond the national boundaries...
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...LOGISTICS is the function responsible for the flow of materials from suppliers into an organisation, through operations within the organisation, and then out to customers. Supply chain management, however, is about managing the flow of materials, components and information throughout the total pipeline from raw materials to end user, and is based on effective customer/supplier relationships to ensure quality, delivery, cost and flexibility can be improved throughout the supply chain. This integration will result in a reduction in the total cost of logistics rather than the cost of each activity. This is due to the improved flow of material and information, improved transport and warehouse asset utilisation and elimination of duplicated department efforts. Consequently this results in an improved capability to respond to customers ―Quick Response‖ needs. The goal is to improve customer service, save cost and increase revenues. to satisfy the end customer whilst achieving competitive advantage over any competitors through ensuring maximum efficiency and return. To respond more accurately to actual customer demand and keep inventory to a minimum (Pull System), leading companies have adopted a number of speed-to-market management techniques that help them to build a comprehensive supply chain structure, such as just in time (JIT), quick response (QR), efficient consumer response (ECR) and vendor managed inventory (VMI). There is a need to develop collaborative relationships...
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...efficiency of Federal Express’s current business model, and recommend one new business-level strategy that gives the company a competitive advantage over its rivals. We are also asked to examine the manner in which overall global competition may impact the new business strategy. And, finally, we are asked to suggest one significant way that Federal Express may confront its global competition. Senior management at FedEx must appreciate the need for adding new value to their organization if they intend for FedEx to remain viable. Senior management needs to be committed to the creation of new internal capabilities for FedEx growth. And management must be ready for strategy innovation and the exploration of FedEx’s strategic frontier. Innovative new business opportunities found on the strategic frontier can provide forward-thinking leadership with the entrepreneurial growth ideas FedEx needs. FedEx does not need decades of R&D expenditures to develop new business ideas and opportunities. All FedEx really needs is an understanding of its customer’s needs. If FedEx is really in touch with the needs of the customer, then the organization will be closer to deciding where on the strategic frontier meaningful value is to be found. Once FedEx reaches that point then senior management will need the conviction and motivation to create a new business model to address those needs. Strategy innovation can take the form of new products and...
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...NIKE SUPPLY CHAIN MANAGEMENT INSERT NAME HERE INSERT UNIVERSITY/COLLEGE NAME HERE INSERT SUBMISSION DATE HERE2 TABLE OF CONTENTS 1 INTRODUCTION...................................................................................................................................................3 2 OVERVIEW OF NIKE...........................................................................................................................................4 3 NIKE SUPPLY CHAIN PROCESSES...............................................................................................................5 3.1 Nike Product Development....................................................................................................................5 3.2 Nike’s Manufacturing flow management........................................................................................6 3.3 Lean manufacturing ..................................................................................................................................6 4 NIKE SUPPLY CHAIN ASPECTS.....................................................................................................................7 4.1 Nike Vertical Relations.............................................................................................................................7 4.2 Horizontal Relations .................................................................................................................................8 5 NIKE...
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...The impact of globalisation on the value chain Supply Management and competitive advantage INTRODUCTION The overall objective is to see how the supply chain management can bring competitive advantage. In addition, examine the benefits created by this tool such as reduced costs, reduced process time, quality analysis and flexible supply chain. That is, verify the changes that occurred after the implementation of this method by checking its adaptability in relation to market changes. (Ballou, 2001) Currently logistics is showing a constant evolution, it remains one of the key elements in the company's competitive strategy. At first it was confused with the transport and storage of products. Today is the nerve centre of an integrated supply chain, working in close harmony with the modern management of the supply chain (supply chain management). She comes to all handling and storage activities that facilitate the flow of products from the point of acquisition of raw material to the point of final consumption, thinking up even in the way within the company, as well as information flows that put moving products, for the purpose of providing adequate service levels to customers at a reasonable cost. The management of logistics and information flow throughout the chain allows executives to assess strengths and weaknesses in its supply chain, helping make decisions that result in reduced costs, increased quality, among others, increasing product competitiveness...
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...Chapter 2 Supply Chain Performance: Achieving Strategic Fit and Scope True/False 1. A company’s competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services. Answer: True Difficulty: Easy 2. The value chain emphasizes the close relationship between all the functional strategies within a company. Answer: True Difficulty: Moderate 3. A company’s product development strategy defines the set of customer needs that it seeks to satisfy through its products and services. Answer: False Difficulty: Moderate 4. A company’s product development strategy specifies the portfolio of new products that it will try to develop. Answer: True Difficulty: Easy 5. A company’s supply chain strategy specifies how the market will be segmented and how the product will be positioned, priced, and promoted. Answer: False Difficulty: Easy 6. A company’s supply chain strategy determines the nature of procurement and transportation of materials as well as the manufacture and distribution of the product. Answer: True Difficulty: Easy 7. The degree of supply chain responsiveness should be consistent with the implied uncertainty. Answer: True Difficulty: Easy 8. The degree of supply chain responsiveness does not need to be consistent with the implied uncertainty. Answer: False Difficulty: Moderate 9. To achieve complete strategic fit, a firm must ensure...
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...Networks A Report on the Summit on Indian Manufacturing Competitiveness by Deloitte Research, the Indian School of Business, New York University, and Purdue University with support from the National Science Foundation Table of Contents Executive Summary: Globalizing Indian Manufacturing .......... 1 Competing in Global Manufacturing and Service Networks ..... 5 The path to becoming competitive ............................................... 5 Cracking the code for success in emerging markets...................... 5 Overcoming the size barrier.......................................................... 6 Growth strategies for Indian manufacturing ................................ 7 Indian Manufacturing and Global Competitiveness .................. 8 Scale and innovation ................................................................... 8 Reverse currents: Going overseas for growth ............................... 9 Going global with pharmaceuticals .............................................. 9 The opportunity in the food chain ............................................. 10 Becoming suppliers of choice ..................................................... 10 Simplifying India for global retailers ........................................... 11 Multinational Companies Entering Indian Markets ................. 12 From India to the world.............................................................. 12 Beyond borders ..............................................
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...* ALTERNATIVES 6 * RECOMMENDATIONS 7 * IMPLEMENTATION 8 * CONCLUSION 8 * REFERENCES 9 * ISSUE: The Ford Motor Company is facing a number of challenges including the direction of CEO Jac Nasser to focus on customer responsiveness and shareholder value to deal with increasing competitiveness, an industry with potential over-capacity and the expansion into globalized markets. Ford had begun to implement systems to reduce cycle-time, improve quality and to lower costs. Programs included consolidating product development into five Vehicle Centres (VCs), reeingineered processes such as Order to Delivery (OTD), Fort Production System (FPS) and Business to Business (B2B) capacity. Additionally, information flow was examined to overcome geographical constraints, thus becoming a critical component of Ford’s global approach. During the past decade the company has implemented many programs and processes becoming the most improved automaker with steady...
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...plastic injection-molding machine in 1947. The plastic version of the Lego brick was born and patented in 1958. Modern bricks we still see today are comparable with ones made in the 1950s. During the 1970’s the foundation of the company’s manufacturing facilities and research and development department were established to keep the manufacturing methods up to date. A LEGO production plant was opened in Enfield, Connecticut in the United States. This growth enabled The LEGO Group to continue expanding their product and by 2007 divide their product line into six product segments including pre-school products, creative building, play themes, licensed products, Lego NXT, and LEGO Education. Fortune Magazine and the British Association of Toy Retailers named the Lego Group Company’s iconic brick the “Toy of the Century.” It was clear that the brand name would forever be connected to their signature brick. A Changing Market The 1990s saw a huge change in Lego’s primary target consumer patterns. With growing technological trends came new psychological trends, the most important of which was called the “kids getting older younger” phenomenon (Hatch and Schultz, 2008). Computer and video games were becoming exceedingly popular....
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...and development of the South African economy through the delivery of reliable transport and handling of services that satisfy customer demand. Its mandate from the government is to assist in lowering the cost of doing business in South Africa, thus enabling economic growth and ensuring security of supply through providing appropriate ports, rail and pipeline infrastructure in a cost-effective and efficient manner within acceptable benchmarks. As an SOC, its mandate and strategic objectives are aligned with the Government’s NGP and the Statement of Strategic Intent issued by the Minister of...
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...through the acquisition of 122 Woolco Stores, Wal-Mart is planning to open their first SuperCenter in Canada imminently. Known for their Every Day Low Price (EDLP) value proposition, exceptionally efficient supply chain, logistics and ERP process execution, marketing aimed at budget-conscious buyers, and product selection, Wal-Mart is a strategic threat to Loblaw. While Wal-Mart is a strategic competitive threat, Loblaw must also stay focused on coordinating their competitive strategy to also stay ahead of dominant grocery competitors including Sobeys, Metrics, A&P, and Canada Safeway. In addition, wholesale clubs, specialty chains, convenience stores and online shopping are additional considerations to keep in mind when defining a strategic response o Wal-Mart. Any competitive response on Loblaw’s part must support and strengthen competitiveness in each of these other channels, or the company risks becoming out of balance from a competitive standpoint. Pricing as a competitive differentiator for Loblaw is not to be taken in isolation; there must also be a concerted approach to look at the company first from an operational performance perspective. In conjunction with this systematic approach to evaluating Loblaw competitiveness at the Operations level, new strategies must be put into place to further strengthen and sustain customer loyalty at each of the retail channel levels as well. The Wal-Mart threat is the most...
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...positioned to attract foreign direct investment and U.S suppliers to the region. Central to the supply chain discussion are location strategies that optimize the value chain, drive innovation through the involvement of education and academia in proximity/joint working relationships and provide flexibility for adapting to business change. Location decisions such as these are special events that require careful attention to many conflicting strategic, operational, financial and intangible factors that can set the stage for either great success or fantastic failures. these issues will be one of the biggest challenges facing the industry in the coming years. This whitepaper explores the key drivers impacting the aerospace industry, the process for developing a comprehensive location strategy in response to industry expansion, and these critical locations factors that lead to location strategy success in the Southeast U.S.: Global commercial aircraft orders have increased six percent in 2011, with accelerating demand for new, more fuel efficient and technologically advanced aircraft. According to a number of studies, the industry will have to increase production by 45 percent to meet demand in the coming year to address the backlog orders. This is evident by the recent announcement by Airbus to double its current $12 billion spend on U.S. suppliers. The demand issues up and down the supply chain will place greater pressure on program management, manufacturing capability and capacity,...
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