The growth in global sourcing and supply often levels the playing field for addi
ID: 405134 • Letter: T
Question
The growth in global sourcing and supply often levels the playing field for adding worldwide value. Companies need at least to consider, if not implement, global value chains as their predominant mode of business. The reality of globalization and the accompanying increase in competition has forced most companies into making efficient gains. Value chain structures are essentially virtual organizations with flexibility to meet changes in customer value expectation and in the way in which value is delivered.
Support and justify the evaluation of the impact of globalization on the value chain by including information related to:
Explanation / Answer
Growth in global sourcing and supply usually takes the company to a positive advantage since now they are well aware of the technology and competiton outside there country which leads them to Competitive advantage over other companys in their country.
Also when they trade on international platform then they are well aware of all the standards that should be used to take care of Corporate social responsibility and sustainable devlopment. ISO(International standard Organisation) 26000 stands for social responsibility.
During the period of marketing and promoting buisness in other countries the employees come in contact with different people of different culture and hence there needs for the product is different from the other people in country.So considering Cultural considerations different product can be manufactured for them according to there needs.
Trading internationally involves large cash inflow and outflow also the product should be manufactured so that it can be used by all type of people by keeping Financial considerations in mind as this will help there buisness to groom at a vast level.
During production various standard sholud be kept in mind so that the manufactured part/servicee does not effect the proper working of environment.So keeping Human resource considerations international standards should be adopted. For this ISO 14000 for environmental management should be adopted.
Political and economic consideration should also be taken into note while manufaturing product as regarding economic consideration product manufactured should be of les cost and high quality as that is the ideal product.
Also by Technological Consideration latest technilogy should be adopted during manufacturing purpose as this will save the time along with more outcome.
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