MKTG 6523 Mid-Term Exam Study Guide
9. Know the definition of a supply chain. A supply chain is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer. It is important to acknowledge that anytime business is conducted a supply chain will exist. (The book says a supply chain is a subset of the value chain but the professor comments that he is not convinced that they are different)
10. Know the advantages and disadvantages of purchasing from overseas suppliers. * Advantages: Cost/Price Benefits, Access to Technology, Quality, Access to the Only Source Available, introduce competition to domestic suppliers, react to buying patterns of competitors, Establish a market presence in another country * Disadvantages: Lack of Skills, Resistance to change, Longer Lead times, Customs languages and culture, currency fluctuations, increased supply risk
11. Know what “sustainability” means in a business context.
Business sustainability is often defined as managing the triple bottom line - a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. Building that strategy begins with looking closely and thoughtfully at the business, then using what is learned to operate for long-term success meeting the company's current needs in ways that help ensure that future generations can meet theirs. Ultimately it is the ability to maintain or support an activity or process over the term. It is the continued development or growth, without significant deterioration of the environment and depletion of natural resources on which human well-being depends.
12. Know what the term “risk” means in a business context.
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