U3 3J global considerations

Question 1

global sourcing of inputs

Answer 1

global sourcing of inputs refers to when business acquire raw materials / resource from overseas suppliers

global sourcing input can be considered if
- raw material you need to manufacture only comes from oversease

• raw material you require is cheaper to source overseas > locally

Question 2

strengths and limitations of sourcing inputs globally

Answer 2

strengths
- access to materials not readily occurring in domestic country

• ability to source higher quality resource oversease to improve end product quality
• access to cheaper materials

weaknesses
- lengthen delivery / supply times

• risk of damage as shipping distance increases
• language barriers in dealing with suppliers

Question 3

define overseas manufacture

Answer 3

overseas manufacture means to produce goods / services in location outside of business headquarters country.

Question 4

strengths and weaknesses to over seas manufacture

Answer 4

strengths
- access to cheaper labor raters / cheaper costs of production

• access to large pool of employees / skill sets that arent available in domestic country

weaknesses
- lost jobs in domestic manufacturing

• language barriers in dealing with overseas manufacturing employees

Question 5

define global outsourcing

Answer 5

global outsourcing refers to transferring specific business activities to external business in overseas country.

e.g it / technology support , human resource management / payroll

Question 6

strengths and weaknesses to global outsourcing

Answer 6

strengths
- access to cheaper labor rates

• business is not directly responsible for non-core services, employees and entitlements

weakenesses
- reduced control over business activities and actions may negatively reflect business reputation

• language barriers in dealing with overseas business / translates into customer frustration
• reliance on internet connection
• legal standards may be different