Chapter 2: Global Value Chain Analysis Flashcards
What is Value chain
set of activities a firm performs to deliver valuable product/service to customer
What is Global Value Chain
set of activities/process in producing product/servies carried out across multiple countries
Define risk and the different types of risks
risk is uncertain/unexpected issue
1) Positive: Opportunity
2) Negative: threat
3) Uncertain: after a while become pos or neg
What are the responses to risk
Accept, Reject, Mitigate
What are key players
they dominate a global value chain and specify the rules for others, they can exclude or include.
How do you measure power
Transaction complexity
Provision of knowledge
Switching barriers
What are the dimensions of transaction complexity
1) Constraints relating to transaction
2) Interfaces between 2 entities
3) Culture: Inability to predict
4) Business case impacts
What are 2 barriers of power
Economical and Phsychological
Where does pull and push strategy enter in the SCM
Push Strategy: from supplier to Outputs
Pull Strategy: from consumer to Outputs
What is a producer-driven commodity chain
Manufacturers -> distributors -> retailers
What is the buyer-driven commodity chain
Retailer/Branded manufacturer -> traders/Overseas buyers -> factories (overseas)
What are the 5 different forms of governance in GVC
1) Market Governance: simple transactions, no long-term commitment
2) Modular Governance: specifications set by buyer, trust, independent
3) Relational Governance: mutual-dependence, trust, shared knowledge
4) Captive Governance: small supplier reliant on large buyers, high cost
5) Hierarchy Governance: firm fully owns production process , complete control
