SCM 300- Module 7
Global Profit motivations - CORRECT ANSWER-Increase Revenues Globally
- Growth Opportunities --> New Markets/new consumers
- Managing Risk of low sales in one market by selling in multiple markets abroad
- Understanding new markets and new trends
Decrease Costs Globally
- Cheap Labor and Resources
- Taxes, Tariffs, legal fees, business transaction fees
- Understanding markets and trends which may allow for savings
volatility is currency exchange rates is both a revenue and cost opportunity
Global brand strategy - CORRECT ANSWER-As companies expand their supply
chains globally, especially to new consumer markets, these companies must be
prepared to deal with differences in:
- packaging laws, accepted packaging conventions, environmental requirements,
different distribution and retail systems, different consumer tastes and needs,
laws that impact truck size, and label requirements
- these issues impact how your product looks, where its bought, and how
consumers judge your brand
- one of the primary reasons some companies expand their supply chains is to
grow and achieve economies of scale which is not easy to achieve
Intellectual property - CORRECT ANSWER-- copy rights, patents, trademarks,
and other designations that protect the creative ideas of the company, and artist,
or other creator of goods ideas
- Intellectual property laws provide the owner of the idea a monopoly on that idea
and all works that derive from it
- as companies choose manufacturing locations for their products, it is expected
that the country where the goods will be manufactured provide sufficient
intellectual property protection
, ex: Apple does not want their contract manufacturer to share Apple's technology
secrets with Samsung or to make their own versions of the iPhone, and if there is
a breach of security Apple would want Chinas help to purse, capture, and bring
justice to the perpetrators
Benefits of External Partners - CORRECT ANSWER-- speed
- expertise
- resource utilization
- focus on core competencies
Risks of External Partners - CORRECT ANSWER-- quality control
- intellectual property
- business practices
- loss of strategic flexibility
Offshoring - CORRECT ANSWER-a strategy where a company moves
manufacturing out of its "home" country to another
ex: Ford manufacturing cars in Germany
Outsourcing - CORRECT ANSWER-when a company contracts a outside firm to
perform services, operations, or business processes that could be or were
previously performed in-house
If Dell Computers (US company) utilized Jabil Circuit (US company) for supply
chain services this would still be seen as Dell outsourcing, even though both
companies are in the United States.
Any time a company hires another company to perform services or operations it
is an outsourcing arrangement, no matter the location of the two countries.
Offshoring and Outsourcing - CORRECT ANSWER-a strategy where a company
utilizes a contractor in another country to perform services and/or operations
ex: Apple, an American company, utilizes the manufacturing services of Foxconn
electronics manufacture in Taiwan
- they manufacturing outside of the US, manufacturing done by an outside party
Global Profit motivations - CORRECT ANSWER-Increase Revenues Globally
- Growth Opportunities --> New Markets/new consumers
- Managing Risk of low sales in one market by selling in multiple markets abroad
- Understanding new markets and new trends
Decrease Costs Globally
- Cheap Labor and Resources
- Taxes, Tariffs, legal fees, business transaction fees
- Understanding markets and trends which may allow for savings
volatility is currency exchange rates is both a revenue and cost opportunity
Global brand strategy - CORRECT ANSWER-As companies expand their supply
chains globally, especially to new consumer markets, these companies must be
prepared to deal with differences in:
- packaging laws, accepted packaging conventions, environmental requirements,
different distribution and retail systems, different consumer tastes and needs,
laws that impact truck size, and label requirements
- these issues impact how your product looks, where its bought, and how
consumers judge your brand
- one of the primary reasons some companies expand their supply chains is to
grow and achieve economies of scale which is not easy to achieve
Intellectual property - CORRECT ANSWER-- copy rights, patents, trademarks,
and other designations that protect the creative ideas of the company, and artist,
or other creator of goods ideas
- Intellectual property laws provide the owner of the idea a monopoly on that idea
and all works that derive from it
- as companies choose manufacturing locations for their products, it is expected
that the country where the goods will be manufactured provide sufficient
intellectual property protection
, ex: Apple does not want their contract manufacturer to share Apple's technology
secrets with Samsung or to make their own versions of the iPhone, and if there is
a breach of security Apple would want Chinas help to purse, capture, and bring
justice to the perpetrators
Benefits of External Partners - CORRECT ANSWER-- speed
- expertise
- resource utilization
- focus on core competencies
Risks of External Partners - CORRECT ANSWER-- quality control
- intellectual property
- business practices
- loss of strategic flexibility
Offshoring - CORRECT ANSWER-a strategy where a company moves
manufacturing out of its "home" country to another
ex: Ford manufacturing cars in Germany
Outsourcing - CORRECT ANSWER-when a company contracts a outside firm to
perform services, operations, or business processes that could be or were
previously performed in-house
If Dell Computers (US company) utilized Jabil Circuit (US company) for supply
chain services this would still be seen as Dell outsourcing, even though both
companies are in the United States.
Any time a company hires another company to perform services or operations it
is an outsourcing arrangement, no matter the location of the two countries.
Offshoring and Outsourcing - CORRECT ANSWER-a strategy where a company
utilizes a contractor in another country to perform services and/or operations
ex: Apple, an American company, utilizes the manufacturing services of Foxconn
electronics manufacture in Taiwan
- they manufacturing outside of the US, manufacturing done by an outside party
