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Supply Chain Management

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Supply Chain Management
1. What role does globalization play for a company that is looking to operate
internationally? (list, explain, give examples)
Globalization refers to the integration and interaction among people, communities, nations, and
companies, a process that is driven by international trade and investments (O’Marah). For
companies planning to operate internationally, globalization has the following roles:
a. Expanding markets
b. Providing access to cheap raw materials
c. Facilitating the exchange of technology
Through globalization, companies find new markets to sell their products and increase
their profits. Currently, most multinationals have embraced globalization and are present in
emerging markets. For example, globalization has enabled most automobile companies to
acquire a share of the large Chinese market; General Motors Company is one such business.
Globalization also facilitates worldwide access to cheap raw materials, which make firms
to be competitive in domestic and international markets. Through global sourcing, businesses can
find their inputs in various parts of the world at the lowest prices. Currently, most American
brands get their products from China due to country’s huge clothing manufacturing capabilities
(Bain). This tactic has enabled these companies to reduce their manufacturing cost, which has
increased their profits.

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Surname 2
Besides exchanging goods and services, firms share ideas with their foreign partners.
According to Spulber, globalization has enabled businesses to sell trade trademarks, patents,
brands, blueprints, and copyrights to foreign companies. The trade in ideas has led to
organizations implementing sophisticated technologies that have accelerated their growth and
increased their global presence (Eitzen and Zinn 83). For example, a small foreign company can
buy a copyright to manufacture products of an established multinational. This policy can make
the former to become wealthy and reduce the establishment costs needed by the latter when
penetrating a new market.
2. What factors must you consider for designing a supply chain domestically? (List,
explain, and give examples).
The main concern for any supply manager is ensuring there is a punctual delivery of his/her
orders. Consequently, I will consider the following issues when designing a domestic supply
chain.
a. Type of inventory
b. Risks in the supply chain
c. Relationship with the supplier
The type of products that I will be ordering will be the primary determinant of the design
of the supply chain. When trading in perishable products, I will use a short supply chain so that
my customers can receive my products when they are still fresh. For example, if I am dealing
with horticulture, I will purchase these items directly from farmers. However, if the items are
nonperishable, I will use a long supply chain because this method is usually cheap (Banker). In
this case, I will purchase items from distributors and directly deliver them to my customers. This
supply chain method will enable me to benefit from the just-in-time purchasing method.

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Surname 1 Surname Tutor Course Date Supply Chain Management 1. What role does globalization play for a company that is looking to operate internationally? (list, explain, give examples) Globalization refers to the integration and interaction among people, communities, nations, and companies, a process that is driven by international trade and investments (O’Marah). For companies planning to operate internationally, globalization has the following roles: a. Expanding markets b. Providing access to cheap raw materials c. Facilitating the exchange of technology Through globalization, companies find new markets to sell their products and increase their profits. Currently, most multinationals have embraced globalization and are present in emerging markets. For example, globalization has enabled most automobile companies to acquire a share of the large Chinese market; General Motors Company is one such business. Globalization also facilitates worldwide access to cheap raw materials, which make firms to be competitive in domestic and international markets. Through global sourcing, businesses can find their inputs in various parts of the world at the lowest prices. Currently, most American brands get their products from China due to country’s huge clothing manufacturing capabilities (Bain). This tactic has enabled these companies to reduce their manufacturing cost, which has increased their profits. Surname 2 Besides exchanging goods and services, firms share ideas with their f ...
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