Lesson 8 - Signature Supply Chains Flashcards
What is the Spatial Division of Labour ?
the idea that the CEO and R&D jobs are done in richer more developed countries while the manufacturing jobs are done in developing and then sold back to consumers in the developing world.
Why does A&F want to create and sell products within the same trade bloc?
To cut down on trade tariffs.
What is meant by Horizontal integration?
The merger of companies at the same stage of production in the same or different industries.
What is Vertical integration?
An arrangement in which the supply chain of a company is owned by that company
What do I mean by Means?
Where the flows of people, goods and money go
What do I mean by Motive?
Profit, control costs, maximise sales. Think: raw materials, take overs, supply chains
What do I mean by Mobility?
Transport, communications, ‘just in time’, reduced costs
Where does A&F manufacture and why?
A&F manufactures mainly in factories in
China, Vietnam, India, and Guatemala where pay is lower and child labour is not illegal.
Who does A&F target?
‘Cool, attractive’ people with near luxury goods. The brand image is the same where ever you go.
How does A&F take advantage of ‘economies of scale?
Their brand covers A&F, Abercrombie Kids, Hollister and Gilly Hicks. By operating together with single bulk purchase, production and deliveries, costs of manufacturing, delivery and showcasing are reduced. Particularly for cotton, where there has been a sharp price rise.
Are you cool enough for A&F?
No