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    Chap 2

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    Chap 2

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    Le Nguyen
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    chap 2

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    Chap 2

    Uploaded by

    Le Nguyen
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    © All Rights Reserved
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    of 4

    Factors impacting global supply chains

    CHAPTER 2

    INDUSTRY IMPLICATIONS
    FOR GLOBAL SUPPLY CHAINS

    Source: Nada R. Sanders (2012), Supply chain management – a global perspective, John Wiley & Sons Publisher, printed in USA.

    Drivers of global supply chains Lifestyles


    Sustainability Knowledge
    3 at customer intensity
    levels

    Market globalization drivers


    Social Rising
    media population
    Market
    Cost globalization drivers globalization
    drivers
    Global Global
    advertising e-commerce
    Government globalization
    drivers
    World Global
    brands firms
    Competitive globalization
    Infrastructure
    drivers
    4
    Rising population Global e-commerce
    5 6

     Available labors  Have a global presence


     Lower labor cost in emerging markets  Improve competitiveness and quality
     Larger potential markets  Analyze customer interests
     Collect detailed information
     Shorten supply chain response times
     Realize substantial cost savings
     Create virtual companies
     Level the playing field for small companies

    Global firms Discussion 1: Market globalization drivers


    7 8

     A business organization that, from inception, seeks to derive  How do market globalization drivers influence
    significant competitive advantage from the use of resources and the
    sale of outputs in multiple countries.
    global supply chains of MNCs?

     Born global firms, from their beginnings, have a global focus and
    commit their resources to international ventures.

     Most companies operate from their home country, and after years of
    doing business domestically, slowly evolve to do business
    internationally. By contrast, born global firms begin with a
    borderless world view, and immediately develop strategies to
    expand themselves abroad.
    Economies of Discussion 2: Cost globalization drivers
    scale
    Security and Accelerating 10
    risk innovation

     How do cost globalization drivers influence global


    supply chains of MNCs?
    Cost of doing Advances in
    business Logistics

    Cost
    globalization
    drivers
    Newly
    Timing industrialized
    countries

    Engaging Product
    locally development
    Resource
    scarcity

    Policies and
    Discussion 3: Government globalization drivers
    regulations Tariff
    WTO 12
    barriers

    1. How do government globalization drivers


    influence global supply chains of MNCs?
    Government
    Non-tariff Why governments have a role in adding value for
    Trading blocs globalization 2.
    drivers barriers
    global supply chains?

    Sustainability Government
    at government buying and
    levels Privatization selling

    11
    Increased Discussion 4: Competitive globalization drivers
    Talent world trade
    Competitive 14
    battlegrounds
    1. How competitive globalization drivers better
    facilitate global supply chains
    Commoditization Foreign
    acquirers
    Competitive 2. The influence of competitive globalization
    globalization drivers, including the increase in world trade
    drivers
    Strategic
    levels, increased “born-global” companies and the
    New competitors
    alliances growth of global networks

    Born global
    Global centering firms
    Interdependent
    countries

    13

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