...MFI 442 International Finance-Individual Assignments I Name Institution MFI 442 International Finance-Individual Assignments I Most corporations expand beyond their local boundaries to become multinationals. There are myriad reasons behind this (Wells & Wint, 2000). The biggest of all these reasons is to gain access to international markets and perhaps invest in economic zones that have high investment returns as compared to home countries (Fu, 2000). The trend of globalization has made most firms become multinational corporations. The most common method for MNCs is through franchises (Jones, 2005). In line with this, economists have put up theories explaining why businesses expand beyond their national boundaries (Hicks, 2000). My primary objective in this paper, therefore, is to discuss international finance and other macroeconomics policies. To foresee this goal, I will delve into foreign exchange market and operations of multinational corporations (MNCs). Theories Explaining Why Corporations Expand to become Multinationals a). Financial economists have brought forward three key arguments that enumerate why companies expand their operations to global markets. These theories are; the imperfect markets theory, the comparative advantage theory and the product cycle theory (Levi, 2004). i).The Comparative Advantage Theory This theory is among the most important concepts in international trade. It states that economic welfare increases when countries specialize...
Words: 5206 - Pages: 21
...1998 Hewlett Packard introduce one of the first printer products to gain sales over 600,000 units in 1990. With over $400 million in sales, Hewlett Packard had gain a foot hold on this market and was growing steadily at a rapid rate. Unfortunately, inventory growth had tracked sales growth closely. Already HP’s distribution centers were having issues maintaining inventory levels and were not able to maintain satisfactory product availability. Can a new logistics design be used to control this issue, will a delayed differentiation help with the issues faced at HP, When is it the right time for suppliers to be involved with new product development process. This paper will attempt to answer these questions to better understand the operations at HP and their supply chain. Hewlett-Packard Supply Chain 3 DeskJet Printer Inventory The inventory problems in the European distribution centers at HP faced long delivery lead times of about four to five weeks from its production facility in Vancouver, Washington, to Europe. The Vancouver plant is a high speed, high –volume facility where manufacturing takes about a week . Hewlett Packard was concerned with high inventory levels and an inventory imbalance in Europe. One of the characteristics of the DeskJet...
Words: 1584 - Pages: 7
...Executive Summary The concept of value chain has attracted considerable attention of managers and researchers. This report briefly presents the value chain in manufacturing industry and then explores the leadership roles of the engineer in the management of the value chain. Furthermore, this report analyzes the benefits of using an engineer in the value chain management and points out that the engineer is best suited to perform the value chain management role. Table of Contents Introduction 2 The Value Chain in manufacturing industry 2 Role of the Engineer in Value Chain 4 Main Management Actions of Value Chain 4 Leadership Role in the Value Chain Management 4 Benefits of Using an Engineer in Value Chain Management 5 Conclusion 6 References 7 Introduction The demands of the new economy caused by globalization have changed the focus of companies from internal efficiency to the creation of value in the extended enterprise, including their suppliers, alliance partners, distributors and customers. The concept of value chain has attracted a great deal of attention from managers and researchers. Porter (1985) described the value chain as a complex series of activities through which a product or service is designed, produced, marketed, delivered and supported and these activities coordinate the nexus between supply and demand. This report explains the leadership roles of the engineer in the value chain management...
Words: 1261 - Pages: 6
...“The Mission of Levi Strauss & Co. is to sustain responsible commercial success as a global marketing company of branded apparel.” (“Mission Statement”). Levi’s main goal is to be a long-lasting company, as it’s written in their mission statement. The company has been around for quite some time; almost everyone can recognize the name Levi’s. But when someone purchases a pair of Levi’s jeans, they probably don’t think about what goes on behind-the-scenes, or how the jeans were actually made. The following paragraphs will cover Levi’s raw materials, modes of transportation, marketing strategy, and their operations. Jeans were invented shortly after the California Gold rush. Levis Strauss then began making miners’ denim work pants with copper rivets. The denim pant had already existed for a while at the time, but Mr. Strauss’ addition of the metal rivets at pocket corners and other points of strain made regular denim pants a “Levi”. In the year 1873, Levi Strauss and his business partner Jacob Davis received a patent for what would soon become the most popular denim brand ever made. (“Levi Strauss”). Because Levi’s is a well-known, international brand, it has suppliers all over the world. There are many different routes through which a pair of Levi’s jeans can be made, throughout the Americas, Europe, Asia, the Middle East, and Africa. One of the many routes taken in the production of a pair of Levi jeans is one located right here in the United States, operating from the...
Words: 1735 - Pages: 7
...Levi Strauss & Co. and China From: Case Studies in Business Ethics 5th ed. Al Gini (pp. 294-298) The market that is the people's Republic of China consists of more than 1 billion consumers and offers low production costs, but its human rights violations have long been condemned by international bodies. In 1993 Levi Strauss & Co. (LS & Co.) faced one of its more difficult decisions in a long corporate history. Would it continue to conduct business in this enormously promising market or honor its relatively high ethical standards and withdraw? Levi Strauss: History and Ethical Stance Founded in the United States in 1873, LS&Co. enjoyed consistent domestic growth for generations and began overseas operations during the 1940s. The company became the world's largest clothing manufacturer in 1977 and achieved $2 billion in sales by the end of the decade. Having offered stock to the public during the 1970s to raise needed capital, management decided fourteen years later to reprivatize in a $2 billion leveraged buyout, the largest such transaction to date. Management's reasons included its heightened ability to "focus attention on long-tem interests (and)… to ensure that the company continues to respect and implement its important values and traditions." By 1993, LS&Co. Produced merchandise in 24 countries and sold in 60. LS&Co. has been a leader among U.S.-based corporations in recognizing the importance of business ethics and community relationships. Two...
Words: 2211 - Pages: 9
...and guidelines would be changes on the part of the company and not changes on the part of the government of China. Here, then, are the prerequisites that Levis must determine, when and if it returns to China. Prerequisite One: Clean Hands Doctrine This is a concept in both Civil and Roman law that all parties to a suit or an argument come to the table with "clean hands" (in other words, no secret guilts and no hidden agendas) ("Global"). This is essential for Levis because its stated reason for leaving China -- human rights violations -- is suspect. In the past, when Levis had found suppliers and/or vendors in its foreign operations that failed to live up to a human rights code the company took action. According to the case, this code of ethics was brought about because the company felt that it had been "lax in keeping informed about conditions for employees at its overseas factories" ("Levi's", p. 104). This code, said to be the first of its kind for a multinational corporation (MNC) covered "employee working conditions, labor relations, environmental impact, and regular inspection for compliance" ("Levi's", p. 104). The implication in the case is that we should praise Levis for this noble stance. In fact, the reaction should probably differ, as we see in Prerequisite Two. Prerequisite 2: Open Your Eyes Levis withdrawal from China in 1993, according to the official stance of the company, was that there were "systemic labor inequities" ("Levi's", p. 104). The "Levi's"...
Words: 1914 - Pages: 8
...BCM Advanced SCM Faculty for Business Information Systems Business Consulting Master (BCM) Business Administration and Logistics Prof. Dr. Guido Siestrup (in co-operation with Prof. Dr. Baier) Prof. Dr. G. Siestrup HFU / WI 1 /8 Timetable Prof. Dr. G. Siestrup / Prof. Dr.-Ing. J. Baier March 19.03. 22.03. 26.03. 02.04. 09.04 16.04. 23.04. 30.04. 07.05 14.05 17.05. 24.05. 31.05. 07.06. 14.06. 21.06. 28.06. Siestrup Baier Siestrup Siestrup public holiday Siestrup Siestrup Siestrup Baier Baier public holiday Baier public holiday public holiday Baier Baier Baier / Siestrup April May Planning June Written exam: July 2, 2012, 02:00 p.m. HFU / WI Prof. Dr. G. Siestrup Examinations • Written exam: • Written report and presentation: 50% (Siestrup) 50% (Baier) • A total of 50% is required to pass the exam Prof. Dr. G. Siestrup HFU / WI Advanced Logistics Brief Contents • • • • • • • • • Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8 Part 9 Introduction to Logistics and Supply Chain Management International Issues in SCM Network Configuration and Networking SCM, Information Management and Information Technology Inventory Management Procurement and Outsourcing Synchronized Production and Distribution Coordinated Product and Supply Chain Design Customer Value and SCM Prof. Dr. G. Siestrup HFU / WI Some Comments • • • • Felix Uploads of slides and other documents Workshop books, e-books SCM-Lab Prof. Dr. G. Siestrup ...
Words: 349 - Pages: 2
...For exclusive use at Massachusetts Institute of Technology (MIT), 2015 9-694-046 REV: MARCH 25, 2008 JANICE H. HAMMOND Barilla SpA (A) Giorgio Maggiali was becoming increasingly frustrated. As director of logistics for the world’s largest pasta producer, Barilla SpA1, he was acutely aware of the growing burden that demand fluctuations imposed on the company’s manufacturing and distribution system. Since his appointment in 1988 as director of logistics, he had been trying to make headway on an innovative idea proposed by Brando Vitali, who had served as Barilla’s director of logistics before Maggiali. The idea, which Vitali called Just-in-Time Distribution (JITD), was modeled after the popular “Just-InTime” manufacturing concept. In essence, Vitali proposed that, rather than follow the traditional practice of delivering product to Barilla’s distributors on the basis of whatever orders those distributors placed with the company, Barilla’s own logistics organization would instead specify the “appropriate” delivery quantities—those that would more effectively meet end-consumer’s needs yet would also more evenly distribute the workload on Barilla’s manufacturing and logistics systems. For two years Maggiali, a strong supporter of Vitali’s proposal, had tried to implement the idea, but now, in the spring of 1990, little progress had been made. It seemed that Barilla’s customers were simply unwilling to give up their authority to place orders as they pleased; some...
Words: 7041 - Pages: 29
...Organizational Dynamics, Vol. 28, No. 4, pp. 52-66, 2000 © 2000 Elsevier Science, Inc. ISSN 0090-2616/00/$--see frontmatter PII 50090-2616(00)00005-X When Ethics Collide: Managing Conflicts Across Cultures PAUL F. BUllER JOHN J. KOHLS KENNETH S. ANDERSON Nike-one of the fastest-growing companies in the world-has been stymied recently due in part to consumer reaction to conflicts involving management practices in its suppliers' factories in the Far East. Among the accusations-poor working conditions, low wages, enforced over time, and harsh, sometimes brutal, discipline and corporal punishment. Levi Strauss & Co. was recently confronted with the challenge of how to deal with contractors in Bangladesh that employed young children, a legal practice in Bangladesh, but one contrary to Levi's company policy. The fact that these chil dren were often a sole or significant source of their family income further complicated the mat ter. Tony Anderson, Chairman and CEO of H. B. Fuller Company, was faced with a decision re garding the company's responsibility for illegiti mate use of one of its products. Resistol, a tolu ene-based glue, has become an addictive drug of choice for many Central American street chil dren. These "Resistoleros" inhale the glue and often experience violent reactions and serious health problems, including kidney failure and brain damage. ness practices. Ethical conflicts may involve a variety of issues: • bribery and extortion, as in the highly publicized...
Words: 7825 - Pages: 32
...Characteristics of The Modern Supply Chain Posted on December 16, 2015 by Danielle Di Giovanni Today having a modern and agile supply chain can mean the difference between staying afloat and sinking. Over 80% of businesses report experiencing at least one supply chain disruption in 2014. With constant and rapidly changing market conditions, organizations need to be lean and flexible in order to respond to disruptions quickly and effectively. Organizations who adopt modern supply chain practices that are flexible, account for disruptions, and leverage new technology fair better in the long run. Let’s take a deeper look into how Technology, Continuous Improvement, and Resilience help supply chains remain relevant and sustainable. Technology Innovation is key to business improvement and supply chain management is no exception. To meet ever-changing consumer demands, organizations must continually optimize the productivity of their supply network due to global competition. Leveraging modern technologies can help simplify processes, reduce costs, improve customer satisfaction, and provide greater control over your supply chain. IoT technologies present some very promising opportunities that help track products to increase visibility and reduce the impact of disruptions due to material shortages or natural disasters. For example, consider Coca-Cola as they recently reinvented their vending machines and introduced Coca-Cola freestyle®. Coca-Cola freestyle® offers consumers fountain...
Words: 1029 - Pages: 5
...Summary Paper Curtis Bond BUS632: Advanced Logistics Instructor: Sanh Tran August 06, 2012 Introduction The supply chain of a typical company takes raw materials and transforms them into a finished product which is shipped to a warehouse for intermediate storage and then sent to retailers or directly to consumers (Simchi-Levi, 2009). Until the advent of computer systems, many of the processes involved in the supply chain such as ordering, order confirmation, and billing were done by telephone, fax, or public mail. This process could take two to four weeks from order to delivery if everything went as planned. Should something go wrong, the delivery time escalated rapidly (Bowersox, D., et. al., 2002). This paper will briefly examine how the introduction of technology into supply chain management has impacted three processes of this supply chain: purchasing, operations, and logistics. Through this examination one get a sense of how technology has positively impacted the entire field of supply chain management. Impact on Purchasing The percentage of purchases to sales is a significant expense to many companies. It is a major area in which a company can attempt to achieve cost savings. Traditionally, this savings comes about through bargaining for price reductions. Of course, this price reduction comes at the expense of the seller. A modern approach, however, seeks to achieve a win-win situation in the transaction through cooperation between buyers and sellers...
Words: 2199 - Pages: 9
...1.0 QUESTION 1 1.1 PESTEL Model The first marketing perspective action that could have been taken by Levi’s is implementing the PESTEL model. PESTEL model can be look as a market research analysis which views and group macro-environmental factors as a whole group picture and it is purposely for the manager to make decision for the organization. PESTEL can also let the manger to see the current market status, business position, and the opportunities of growing products and business. There are six factors that are grouped in the PESTEL model, the first factors is political factor which is considers about the terms and change and activities of the government. For example, government has increased the tax rate, thus the manger will make adjustment by increase current price of the year due to maintain current amount of profit. The second factor is the economic factor which looks into the current economy situation, such as inflation or recession and the exchange and interest rate. Manager will invest in more machinery or other investments when the interest rate is low. The third factor is the sociological factor which looks into the current needs and culture of the social. For instant, the demand of skinny jeans among the youngsters have increased, Levi’s will design and produce this kind of jeans. The next factor is the technological factor which deals with the affect changes or growth of technology of Levi’s. This factor should be consider seriously by Levi’s, because the...
Words: 2229 - Pages: 9
...Starbucks PROC 5850 Procurement / Logistics Executive Summary DRAFT 1 Introduction Starbucks began in Seattle Washington in 1971. Today, in 2012 there are 17,000 stores in 55 Countries and their mantra is Ethical Sourcing. Ethical Sourcing includes Coffee Farm Support, Tea, and Cocoa and Store products. There store product include beverages, pastries, whole coffee beans, and coffee-related retail items. These are considered “specialty items” (Store Products). Overarching responsibility includes Community, Ethical Sourcing, Environment, Diversity and Wellness. Global Responsibility includes an “All Hands” year in review on-line. Ethical Sourcing includes Coffee, Tea and Farmer support. Cost Sharing (Operations), provides discounts on wholesale prices. Contracts Starbucks Ethical practices when sourcing: Starbucks uses long-term contacts providing teaching and support to the farmers for the best quality organic beans. These agreements are usually fixed commitment; mixed long-term and flexible contacts for one time harvesting -- overages of beans are purchased from a farmer to avoid the bull-whip effect. (e.g., floods, freezes, drought or other catastrophic events). The farmers store the beans. Global Responsibility includes ethical sourcing of coffee, Tea and Farmer support. Environment stewardship means to recycle everything by establishing wells for farmers, and providing or conserving energy as needed; including all the materials...
Words: 740 - Pages: 3
...The Impact Of Outsourcing On General Electric Commerce Essay The report aims to highlight the impact outsourcing has had on General Electric Company. This paper analyzed GE’s decision to have multiple outsourcing partnerships. The paper also discusses the impact that outsourcing will have on US economy in general. The first part of the paper reveals how outsourcing has led GE to be a cost efficient, productive and profitable company. The findings outlined factors such as the success of GE Real Estate in Mexico. It also outlined GE’s successful steps in India in order to source products, services, and intellectual talent from India for its global businesses. The next section of the paper discusses GE’s decision to have multiple outsourcing partnerships. It discusses the strategies of successful multiple outsourcing and consolidated it with GE’s steps of outsourcing its businesses in different countries. In the last section the report elaborates different impact will outsourcing have on US economy. It contrasted the brighter side of outsourcing such as $100 worth of work sent abroad by U.S. companies; $130 to $145 will be reinvested in the U.S. economy. It also reveals the downside as it discusses how sending jobs abroad can affect American job market. 1.0 Introduction 1.1 Background General Electric is a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines...
Words: 5814 - Pages: 24
...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...
Words: 4341 - Pages: 18
