Create a hypothetical global corporation and answer the five basic questions tha

Question

Create a hypothetical global corporation and answer the five basic questions that deal with production:

Where should production be located and should it be concentrated or dispersed?

What should be the long-term strategic role of foreign productions sites? Should the firm abandon a foreign site if factor costs change, or is there value to maintaining an operation at a given location even if economic conditions change?

Should the firm own foreign production or should production be outsourced?

How should a globally-dispersed supply chain be managed?

Should the firm manage the logistics or outsource their management?

Explanation / Answer

Production should be based on the demand centers which will.helps in reducing the transporation/ delivery cost. The firm has to concentrated on a single location first and it can gradually expand based on the increase in demand and other market requirements

Long term strstest is to ensure the quality standards and meet the customer requirement on time. Concentrate on cost reduction strategies and earn more revenue through currency exchange values.

The change in location should not be just dependent on cost , it should considrc the changing economic policies, enhancing the presence of brand ,other trade norms and policies with foreign countries.

Outsourcing can be done depends on the capabilities and cost reduction possiblities. AvaukabAvail of resources , trchnolotech with service providers can help the organization to utilise the opportunities of outsourcing.

Global supply chain can be managed through effective use of technologies. Use of control tower, centralised procurement cell etc can can providr more control over the supply chain. In addition to that proper Network analysis , adopting sustainablity practices will also reduce the tisk of future supply chain.

Logistics to be outsourced. It involves lot of networks and avaulaavaila of transporation vehicles .ooutsourcing will reduce risk involved and it can be controlled. Multiple logistics providers can be chosen and can evaluate them bsbas on their performance and netowne capabilities. This helps orvaorganisa to reduce the investment required in this area.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.