...stage in the value chain. Using the Mckinsey generic value chain, we have the following stages: Technology Development - Product design – Manufacturing – Marketing – Distribution - Service Technology development: This can also be referred to as Research and Development. Vodafone places a lot of importance on this because the company has achieved economies of scale with this. The technology and infrastructure platform is replicated in all the countries of operation , it is known that sharing fixed costs across all countries of operation can contribute to cheaper operations. Setting up a service centre in India is which is central to the group operations also helped in achieving economies of scale. Product Design: Vodafone’s products are technology based and so product design is linked to technology development. The fact that the company designs their products ensures that they determine the functionalities, characteristics, aesthetics and quality. Manufacturing / Distribution: This can be closely linked to Vodafone’s supply chain. Network construction and maintenance is outsourced particularly in emerging markets like China and India. Purchase of equipment, software and handsets are centralized and economies of scale has been achieved through this because the company strikes direct deals with the manufacturers of the various products. Vodafone sits at a pivotal position in the supply chain linking the end consumer with a complex pyramid of supply. The company sources...
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...Introduction In examining, the case study on Crocs; it displays an overview of the company’s objectives in operations to include the supply chain. This examination reveals the success behind how the company thrives in times when others are unable. Part of Crocs leading objectives and primary function is to reinvent the supply chain to provide less shortages and increase awareness and customer satisfaction. This paper will outline a brief overview of company history, Crocs two primary core competencies and in which manner do they exploit them; continued evaluation will cover vertical integration, acquisition, or product extension growth. Further discussion consists of company production and inventory as well, as how margins affect their decisions. History and a Foundation for Core Competencies Lyndon Hanson, Scott Seamans, and George Boedecker created Crocs, INC. in 2002 out of Boulder Colorado. The idea came from a trip taken by the three, where one of them had purchase a pair made from a company out of Canada. The decision to start a business selling the shoes was realized after they leased a warehouse in Florida; when sales took off, they contacted Ronald Synder a college friend who which was employed for Flextronics (electronics manufacture) in an executive position. The addition of Snyder was positive as he helped invent their supply chain strategy (Schroeder, Goldstein & Rungtusanatham, 2011). In historical industry practice, it was commonplace to build orders for...
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...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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...Distribution Structure of Nokia Nokia manufactures its mobile in Chennai manufacturing plant and then it transfers to nokia’s mother depot which is located in Gurgaon, HCL will start distributing Nokia’s product from here on. HCL takes order from all the distributers in the region and then it supply the product to the retailers with the help of RDSS (Re-Distribution stockiest supplier). RDSS are further divided in to two types based on quantity distributed and geographic nature as RDSS city and RDSS MD (Micro Distributers), RDSS city caters to large cities and supply directly to the retailers whereas RDSS MD will supply to its micro distributers to carter small towns and through them it will be supplied to retailers. The above mentioned distribution channel structure of Nokia – HCL is restricted to north and east part of India. For west and south India Nokia has developed its own distribution channel which takes responsibility of transferring handsets to end users apart from that Nokia also takes responsibilities like recruiting sales force, training and developing. Stock norms of Nokia- HCL says that how many days stock should be maintained in each level of distribution in the supply chain which are as, HCL – 7, RDSS city – 5, RDSS MD – 4 and MD – 3. Anything below this number of days would be replenished immediately to avoid stock out. Distributors in India are HotSpot, Mobile Store, Univercell and Subhikshah. Apart from this Nokia have their own New Concept Stores and franchises...
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...Rings, and Spiderman, include detailed construction plans. Do you think this is the right strategy? Why or Why not? Justify your assessment of Lego's strategy. To disect whether the inclusion of detailed construction plans in its film-franchised LEGO sets was the right strategy or not, it’s important to start with what the company itself stands for. The name LEGO means “play well”—the focus of the toy manufacturer being “play.” The perennial toy maker has a brand that stands for “self-expression,” and “sponteneity,” and “innovation.” That is, the core of LEGO is not jus that it’s a toy, but that it encourages children to be imaginative and creative with it’s simple interlocking bricks—a child can build anything that he or she can dream up with LEGO products. In fact, LEGO itself recognizes that two of its sources of competitive advantage are creativity and innovation. These are the decisive points for LEGO. They are what make LEGO, LEGO. Creativity and innovation are the product’s differentiators. They are the source of the company’s competitive advantage and, therefore, a key element in the company’s strategy. These differentiators are what propelled LEGO to a peak 85% market share of the construction-toy market. While licensing film francises into its merchandise wasn’t the wrong strategy, including detailed construction plans with those LEGO sets was the wrong strategy. By including detailed construction plans with its products, the company is sending cues to its customers...
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...the Earthquake and Tsunami in Japan in spring 2011 was to bring to the forefront the issues of supply chain venerability. Use the article from the Congressional Research Service for an article review. In your review, discuss how the specific situation could have implications in a broader sense. This article was a great detailed as well as a depressing topic covering the events of the earthquake and hurricane occurrence on March of 2011 at the northeast coast of Japan. This happening was the most powerful natural disaster in Japan’s modern history. Affecting the challenge for Japanese government, businesses, and societies was the resulting ruining of several nuclear reactors in the region which supplied electricity for homes and industry. Located in the disaster expanse are a number of manufacturing facilities which are vital to the global motor vehicle supply chain. These areas took a big hit which was seemed to be preventive in resolution based off the imagery and cost factors of how the end result of the hurricane and earthquake effected those critical locations. These facilities include warehouses that assemble automobiles and many suppliers which build parts and sub-components for vehicles. The effects of these disasters has been first and foremost accepted by Japanese automakers, which closed many of their assembly plants for several weeks as they evaluated their supply chain issues and impact on their essential sub-tier suppliers. Japanese motor vehicle plants in other...
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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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...The Role of the Engineer in the Value Chain Executive Summary In the recent past, value chain management has undergone radical transformation through various stages of automation, optimization and integration. This is based on a variety of reasons such as shortened technology and product development lifecycles, globalization, and pressures of competitive forces. This has forced organizations to review their value chain systems in order to survive and grow in such dynamic economic environments. In the field of engineering, value chains have become vital aspects of operations management when it comes to the application of engineering systems to the industrial and commercial processes. The main purpose of this paper is to disentangle the role of the engineer in the value chain. In this context, it will go further in analyzing the key elements of value chain and any accrued benefits that come with use of engineers in the value chain management. Value Chain Analysis The inception of Value Chain is associated with Michael Porter. He gives his understanding to this concept using a model he referred to as; “Porter’s value chain model” (Sekhar, 2009: 115). This model evaluates the strategically vital activities in a firm that boost its competitive advantage. Such competitive advantage is usually achieved through the core competencies of the firm. According to Porter, a firm is defined by a set of processes and functions which he classified into five main activities; the inbound...
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...primary reference to IKEA. Student Name: Pui Tung CHIU Submission Date: 3 April 2015 Introduction A business activity generates both positive and negative influence for both the corporate as well as the society. The growing expectations of social, environmental and legal responsibility gradually rise in the past decades for corporate. Organizations use corporate social responsibility (CSR) to set up activities in order to achieve and respond these expectations. Jamali and Mirshak (2007) state that CSR approach helps to attract global attention and acquire a new resonance in the worldwide economy. However, Frankental (2001) claims “Do CSR is a public relations (PR) invention?” and company focus on promoting itself, getting an edge on its revivals rather than being ethic to protect the environment or maintain human welfare. Therefore, in this essay, author is going to discuss about the different between CSR as well as PR. Moreover, it will apply an example of IKEA to examine the effectiveness of its CSR in supply chain and analyze CSR as a business strategy to maintain the sustainability of business, financial control and risk management. Afterwards, author will highlight the limitations of CSR policy and finally provide some recommendations to improve the CSR strategy for corporates in order to maintain the sustainable resources and increase the brand value as well as profit. Definition of PR According to Clark (2000) points out that public...
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...FEDEX TOWARDS PALM OIL INDUSTRY Core competency identified to be implemented in palm oil industry is Fedex supply chain management and its tracking device CORE COMPETENCY its infrastructure which is hard to imitate- a world wide network of planes trucks ships and hubs need a huge amount of capital. its dedication to innovation and embracing new technologies. – eg, them being the first logistic company to embrace the www as a tool to reach out to customers {attitude}. Like their wireless solution for faster shipping time, allowing customers to track their packages while travelling etc. Plus supply chain management and tracking capabilities. TARGET: GREEN INDUSTRY Solar+ biodiesel = substitutes for fossil burning Why green energy industry? In this presentation we will be focusing on 2 alternatives. Solar and bio-diesel. In support to the relevance of green energy, according to Eye For Transport, surveying 250 north American supply chain executives. The green transportation &logistics report revealed financial(ROI) and public relations are the driving force. 75% of a company‟s carbon print come from logistic and transportation. 6% respondents designate green issues as unimportant While 69% agree that green issues are important to their transport and logistics processes 9% find it as their No.1 priority. Total of 78% find relevance towards green transportation and logistics. Now. It is found greening their T&L process is fundamentally...
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...achieve world-class supply chain efficiencies targeted primarily at driving down costs. Wal-Mart isn’t just the largest retailer in the world, over the past several years it has popped in and out of the top spot on the Fortune 500 list—meaning that the firm has had revenues greater than any firm in the United States. Wal-Mart is so big that in three months it sells more than a whole year’s worth of sales at number two U.S. retailer, Home Depot.[1] At that size, it’s clear that Wal-Mart’s key source of competitive advantage is scale. But firms don’t turn into giants overnight. Wal-Mart grew in large part by leveraging information systems to an extent never before seen in the retail industry. Technology tightly coordinates the Wal-Mart value chain from tip to tail, while these systems also deliver a mineable data asset that’s unmatched in U.S. retail. To get a sense of the firm’s overall efficiencies, at the end of the prior decade a McKinsey study found that Wal-Mart was responsible for some 12 percent of the productivity gains in the entire U.S. economy.[2] The firm’s capacity as a systems innovator is so respected that many senior Wal-Mart IT executives have been snatched up for top roles at Dell, HP, Amazon, and Microsoft. And lest one think that innovation is the province of only those located in the technology hubs of Silicon Valley, Boston, and Seattle, remember that Wal-Mart is headquartered in Bentonville, Arkansas. A Data-Driven Value Chain The Wal-Mart efficiency...
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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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...Business as Usual is Not an Option Supply Chains and Sourcing after Rana Plaza Sarah Labowitz and Dorothée Baumann-Pauly April 2014 About the Center for Business and Human Rights at New York University Stern School of Business “At NYU Stern, we develop people and ideas that transform the challenges of the 21st century into opportunities to create value for business and society. Our Center for Business and Human Rights is the embodiment of that mission. By creating a safe haven for open dialogue and convening relevant voices for discussion around practical solutions to some of the world’s most pressing problems, the Center, and by extension this report, demonstrate that profit and principle can co-exist. ” –Peter Henry, Dean NYU Stern School of Business Dean Henry launched the Center for Business and Human Rights in March 2013 with a strong belief in the power of business to create positive change in society. In that spirit, the Center’s mission is to challenge and empower businesses to make practical progress on human rights in their own operations. It is the first center to focus on human rights as an integral part of a business school. We start from the premise that business can and does work for the good of society. We support the goal of business to create value while emphasizing high standards for human rights performance. Each year, we take on a major project around a set of human rights challenges in a sector that is of foremost concern for companies, consumers...
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...to the store, where they’re prepared in the open kitchen behind the cashiers. You’ll see a few folks eating at the restaurant’s tables or tucking into their food outdoors on patio benches, but most customers come in with a handful of cash—no credit or debit cards, thank you—and head back out with their meals. Four is In-N-Out Burger’s innovation fulcrum—the point at which the number of products strikes the right balance between customer satisfaction and operating complexity. Four means simple purchasing, simple production, and simple service. And, it turns out, in a world where fast-food restaurants are forever adding formats and menu items, simple means harvard business review • november 2005 profitable growth. With its chain of about 200 restaurants...
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...exploited successfully, ICTs have increased firm competitiveness either by raising the efficiency of internal communication and organisation and/or supply chain relationships, or by facilitating the development of new/improved products and services. Second, it is hypothesised that many of the factors affecting the successful adoption of new technologies are generic in nature. With regards to SMEs specifically, consideration of earlier research may assist us in identifying a set of enablers and barriers to e-business adoption. Hence, by explicitly acknowledging the context and prior history of research in the area, we are able to map out the dimensions of future theoretical and empirical research in e-business adoption by SMEs. In addition to drawing together factors identified by existing research, the paper highlights the implications of network externalities for the timing of technology investments and the returns that accrue to early and late adopters. It also draws attention to a number of problems associated with the analytical concept of ‘the SME’ when it is applied to this area. The research proceeds by clearly defining the technological and organisational characteristics of the e-business model and a brief consideration of the trends in adoption in the UK vis-à-vis adoption in the other G7 countries. Together these set up a detailed consideration of the internal and external factors influencing adoption. A qualitative approach, in the form...
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