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Case interpretation - Research Paper Example

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Case Interpretation Paper Introduction The world is changing day by day predominantly due to the reasons like frequent change in climate, scarcity of resources, rapidly increasing population and increasing demand. It strongly affects the life of an individual, which also creates an impact over the business world…
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Download file to see previous pages These scenarios provide a basic idea about the challenges which might be faced by the business environment in order to survive in the marketplace in the year 2050 (Deutsche Post AG, 2012). Among these case scenarios, this paper aims to evaluate the state of affairs presented in the first scenario, titled as Untamed Economy – Impending Collapse. Furthermore, the paper will assess the challenges which might be faced by the logistic industry due to the most probable challenges in the business environment of 2050. It will also intend to identify the reasons and/or causing factors of these challenges. Case Scenario: Untamed Economy – Impending Collapse The entire world is distinguished with the assistance of unrestricted materialism and consumption. In addition, the rapid growth of international trade set the pace of business and economy all across the world. The advanced global transportation also ensures the frequent exchange of goods and services all across the international territories and/or boundaries. With this concern, it has been observed that the world economy is forced by unsustainable standard of living along with the uncontrolled exploration of natural resources which in turn creates a string negative impact over the stability of business environment. ...
It is most likely to be disrupted by the frequent natural disasters which in turn can have strong influences on the global supply chain increasing capital costs in terms of logistic companies. Apart from this, the international trade is also quite likely to increase the demand of production processes by the companies in the global dais. Therefore, rising insufficiency of energy resources, higher energy prices and costlier raw materials shall lead to slackened profit margin in the industry sector. With this concern, operational managers of the global logistic industry should actively response to the disasters with the help of contingency planning (Operations Manager, 2012). It has further been observed that operational managers are mainly engaged with inventory management processes, shipping and receiving as well as hiring and training employees in the current day context. However, in such probable scenario of 2050, an operational manager shall need to focus on inventory management along with strong networking of supply chain according to the regional divergences in order to maintain the profit margin (Johnston & Clark, 2012). Challenges to be faced by the Logistic Industry in the Year 2050 In the year 2050, the logistic industry might have to face various challenges in terms of supply chain disruption, high energy prices, expensive raw materials and shrinking profit margins. In the upcoming eras, there are high chances for scarcity of resources due to the natural disasters and frequent climate changes which in turn shall create the nationalism and protectionist barriers across the international boundaries. Additionally, this might come up with ...Download file to see next pagesRead More
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