Chapter 3: Global Value chain design Flashcards
Give me general reasons to globalise
Reduced costs
Improve supply chain
Provide better service/product
Understand Markets
Attract and Retain Global talent
What are the 4 Strategic Postures when it comes to globalizing
1) Business Transfer: replication of business activities in multiple countries, high degree customisation
2) Home Orientation: stick to home market, starting position for many companies
3) Global Integration: Destruction of Value Chain, relocation of every process
4) Export Orientation: Value creation in home country, export of products to other markets
What is important to think about in the decision
Customer needs
Product features
Customer focus
Production conditions
What are the factors that influence the network design
Supply chain costs: facilities, inventories
Elements of customer needs: product variety, response time…
Give 2 ways of managing demand
adjusting to seasonal demands
differential pricing
Give 2 ways of managing Capacity
making staff changes
improving processes
What are the most important reasons of outsourcing
Cost savings 77%
Gaining outside expertise 70%
Improving services 61%
Gaining access to technology 56%
What are the most common outsourced processes
Purchasing
Logistics
R&D
Finance & Accounting
HR/Training
Service Management
What are the advantages of outsourcing
Cost savings
Gaining outside experience
What are the disadvantages of outsourcing
Loss of control
Long-term Impact
What are the risk mitigation in outsourcing
agreements must specify results
evaluation is necessary to ensure performance
What is the definition of Resilience, Short resilience and Long resilience
The ability to withstand changes in its environment and still function
Capacity of Value chain to persist, adapt, transform in the face of change
Capability of Value Chaine to prepare for unexpected events and respond to disruptions
What are success factors of Global value Chain
Agility
Responsiveness
Flexibility
Give me 2 Location Decision Parameter
Global innovations for local markets: proximity to demand, ability to innovate
Regional processing: access to raw materials; proximity to demand
What are reasons for new location selection
Proximity to Customer
Decrease cost
What are the assumptions of location selection
Bulk-Gaining: finished products weigh more than raw materials
Bulk-Reducing: finished products weigh less than raw materials
What is the criticism on the Scoring Model
Subjective result, it is not verifiable
the characteristics are not always clearly representable
What is the criticism on the Cost Comparison analysis
It is unsuitable for complex decisions
No statement of advantage can be made
What are the different dimensions in sustainable development
Time
Social
Environmental
Economic
Spatial
Technical
What is the pyramid of CSR
1) Philanthropic: social engagement
2) Ethical: social behavior
3) Legal: comply with all laws
4) Economic: cover all costs
What can risk management do
Identify and Evaluate risks faced by a firm
Communicate these risks to senior management
What can’t risk management do
Predict the future
Identify business opportunities
What is the risk management cycle
Risk Monitoring -> Risk Identification -> Risk Assessment -> Implementation of strategies
What are the risk management tools
Probability of occurring (uncertainty)
Impact
What are the Value Chain Risk Sources
1) Demand side risks (disruption in material flow to customer)
2) Supply side risks (quality pbs)
3) Regulatory, legal, bureaucratic risks (non compliance with laws…)
4) Transportation risks (accidents)
5) Infrastructure risks (It failures, fire)
6) Catastrophic risks
What are the strategies for resilient procurement
Operational measures: Stocks
Tactical measures: Sustainability
Strategic measures: Multiple sourcing
What are the strategies for resilient production
Operational measures: Preventive Work Safety
Tactical measures: Demand-oriented Production Planning
Strategic measures: sustainable Alignement of processes
What are the strategies for resilient logistics
Operational measures: Additional Storage Space
Tactical measures: Alternative Transport Routes
Strategic measures: Automation of processes
What are methods for sequence planning
first come first serve
shortest process time
earliest due date
