How Global Value Chains May Have an Impact on an Organization's Supply Chain Design and Corporate Alignment Global Value Chain The term ‘value chain’ denotes various functions of the organizations and that of the employees to create a product (from commencement phase) and comprises all measures still it reaches to the end user…
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The global value chain encompasses functions which are strongly included and frequently managed on a regular basis. Thus, these functions can impact on the activities of organization in home as well as in other host countries where they perform the business operations. These impacts are pretty straightforward when an organization from one nation inaugurates a new industrial unit or engineering unit in other nation. A few of the impacts are more complex when an organization of one nation makes an agreement with an organization in other nation in order to coordinate production in plants. The impacts of global value chain are precisely seen on the supply chain design and corporate alignment of an organization (Schroeder, Goldstein, & Rungtusanatham, 2010). Value Chain and Supply Chain The idea of value was first created and promoted by Michael Porter in the year 1985. He had demarcated value as the number of purchasers who are prepared to pay for an organization’s products or services (Chan, 2007). According to him, the value chain is the blend of nine common value added functions inside an organization which can deliver value to the consumers. On the other hand, the concept of supply chain first appeared in the year 1980. Supply chain describes the handling of material flow inside an organization from suppliers to the end users. ...
Impact of Global Supply Chain on Organization’s Supply Chain Design Nowadays, globalization is no longer restricted to only products; it has expanded to other business aspects such as foreign direct investment, occupation and services among others. The global value chain is determined by the organization’s wish to raise competency, because increasing domestic competition and global market powers are facilitating organizations to become more effective with respect to cost of products and services. In this regard, a strong value chain can help organizations to enter new evolving markets and to improve access to strategic resources which can assist in tapping foreign business knowledge (Kleindorfer, Singhal, & Wassenhove, 2005). In order to cope up with the changes carried by rapid globalization, there is need for an accurate supply chain design. A properly structured supply chain design can enhance the internal network and flow of resources through it. With constant commoditization of several goods, organizations require improved methods to differentiate themselves from other competitors. In order to compete in the global market, there is need for improvement through supply chain redesign. Therefore, global value chain can impact on supply chain design of organizations in order to fulfill the objective of cost minimization and to develop a more efficient value chain to stay cost competitive (Power, 2005). Impact of Global Value Chain on Corporate Alignment The global value chain is also related with the corporate alignment of an organization. The global value chain delivers the contents of organizational culture, management style,
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Meditech’s distribution network is managed from a main warehouse, where members of staff dispatch the instruments both to local, as well as, international customers. Meditech has been successful in the past, but numerous customer complaints indicate a problem in supply chain management.
According to the paper supply chain process in a company is essentially an external process. The present report will throw a light on the present scandal over horse meat in processed meat products. Horse meat was included in branded food products without informing the supermarkets, the processors and their customers.
As businesses are becoming more and more market driven and customer oriented, it is imperative to offer goods and services that would maximize consumer value.
The creation of customer value revolves in the production process of a company. It is only logical that as a product goes through the latter stages in production, it should render more valuable to its target market.
A realization has come that the company growth will slow down unless other markets are opened for the products. The new developed tyres with their patented technology offer the greatest opportunity this time to enter other markets with momentum and quickly gain market share.
As the paper stresses nothing remains at the same place; everything in this world is changing with an intensive pace and high speed. While talking about business and management processes these formulation is most welcome. One of the revolutionary approaches to supply chain management has been contributed by the VW Resende.
d companies to invent newer and newer means and ways of designing their supply chain to not only satisfy customer needs but also gain a competitive advantage in the market place.
The paper attempts to explore three important themes namely deployment of internet and IT
Some of the obstacles covered in the paper include the fact that fresh produce tends to go bad and decay easily and has higher regulatory safety requirement, while consumers demand diversity because of constant changes in their tastes. Linkages between different parts of the chain of supply for fresh produce are not effective.
For instance, the varied foods that are processed by the company need inputs of energy, water and other natural capitals to process and produce. The products and food that are bought also should be transported and packaged at their various centres of distribution
As the report discusses the long supply chains that characterize many of the contemporary global supply chains have resulted in a number of obstacles some of which include increased risks of procurement frauds, lack of effective monitoring systems and difficulty in tracking the supplies to authenticate their transparency.
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