UNIT 18:GLOBAL BUSINESS ENVIRONMENT lo 2:

Transcript:UNIT 18:GLOBAL BUSINESS ENVIRONMENT lo 2::
UNIT 18:GLOBAL BUSINESS ENVIRONMENT lo 2: Determine the strategic complexities associated with operating in a global environment UNIT 18:GLOBAL BUSINESS ENVIRONMENT M2: CRITICALLY ANALYSE STRATEGIC CHALLENGES IN CONTEXT OF RISK AND DIVERSIFICATION STRATEGIES AND THE SUPPLY CHAIN The complexities of the international supply chain management A supply chain is a global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash. A supply chain, in view of the above supply chain management definition, comprises a network of both entities and processes (the engineered flow). A supply chain doesn't have to be global, but the massive chains that interest us in this course -the ones that run through corporations, are decidedly global in scope. The complexities of the international supply chain management Figure below illustrates a very basic supply chain (one that is not necessarily global) with three entities--a producer with one supplier and one customer. The complexities of the international supply chain management A supply chain involves, directly or indirectly, everyone and everything required to extract materials, transform them into a product, and sell the product to a user. Supply chains include various entities, such as raw material extractors, service and component suppliers, a material product manufacturer or a producer of services, distributors, and end customers. Supply chain management structures vary based on demand history, business focus, and needs for connectivity, technology, and equipment. The complexities of the international supply chain management Supply chains can be viewed in terms of processes, such as the gathering and processing of marketing data, distribution and payment of invoices, processing and shipping of materials, scheduling, fulfilment of orders, and so forth. Such functions cut across entities. Supply chains include various flows as well as various entities. Materials and services flow from suppliers toward customers; payment flows from customers toward suppliers; information flows both ways. Supply chains also run in reverse, starting with the customer who sends back such items as components for replacement or repair, returned goods for re-manufacture, and obsolete goods for recycling or disposal. The reverse chain, like the forward chain, also comprises information flows and cash or credits. The complexities of the international supply chain management It incorporates management processes that integrate the network of suppliers, manufacturers, warehouses and retail outlets so that the right type of goods are sourced, supplied, produced and shipped in the right quantities,