Business Sustainability and Joint Ventures
Added on 2020-03-04
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Running head: LOGISTICS MANAGEMENTLogistics ManagementName of the Student:Name of the University:Author’s Note:
1LOGISTICS MANAGEMENTTable of ContentsIntroduction......................................................................................................................................2The fundamental reason for success for BX Shoes in comparison to another successful andunsuccessful company.....................................................................................................................2Techniques of maintaining competitive advantage for BX Shoes...................................................4Suitability of the competitive advantage of BX Shoes for other companies...................................6Discuss the concept of sustainability and its relevance to BX Shoes..............................................7Conclusion.......................................................................................................................................9References......................................................................................................................................10
2LOGISTICS MANAGEMENTIntroductionManaging logistics is a significant aspect of supply chain management that ensuresappropriate planning, implementing and controlling to move forward effectively. The functionsof logistics management are conducted in order to meet the demand of the potential customers.Successful logistics management ensures the overall success of the business thereby, gainingcompetitive advantage for the organizations and ability to sustain in the market. In this assignment, the fundamental reason of success for BX Shoes is analyzed incomparison to other successful and unsuccessful organizations. This assignment also highlightsthe probable techniques of competitive advantage that resulted in the success of BX Shoes alongwith mentioning the ways of using the techniques by other organizations for ensuring success.Moreover, the concept of sustainability and its relevance in terms of BX Shoes are alsodiscussed. The fundamental reason for success for BX Shoes in comparison to another successful and unsuccessful companyAccording to the given case study, BX Shoes is a subsidiary of one of leading brands inIndia. The company operates in partnership with an Italian company and mainly emphasizes onexporting materials. As the organization emphasized on cash-intensive business operations, BXShoes is a good fit for outsourcing materials. The shoe company has incurred loss initially thatwas rectified by changing the business operations style. The loss of failure initially wasidentified due to outsourcing materials to multiple outsourcers. The revenues of the organizationfell dropped 20% in the third year compared to the revenues of the organization in the second
3LOGISTICS MANAGEMENTyear, that increased by 50%. This was a trial period for the organization as the organization wasestablishing the business rather than making headway. Upon identifying the reason of the failureof the business, in the year 1999-2000, a partnership between the BX and the Italian partner wasestablished. Henceforth, growth was noticed for the organization. As commented by Sun and Lee (2013), joint venture or partnership is defined as thecooperation of two or more companies in which each of the partners agrees to share the profit,loss and control in a particular enterprise. The partnership between the Italian partner and the BXhoes worked like a joint venture that a not restricted only to the design stage for the companies.For example, if improper material is produced, both the parties will simultaneously handle theissues and try to overcome it. There are examples of successful joint ventures for variousbusiness organizations throughout the world. The Chinese Chery Automobiles entered into a joint venture with the British luxury carmanufacturers and the company was named Chery Jaguar Land Rover Automotive Company. Aplant was established in Changshu in Shanghai. The chief of the newly formed joint venturedcompany said that both the companies would work in close collaboration and emphasize on theircapabilities to produce advanced and relevant car models for the Chinese customers. The jointventure allows the host company to have a better understanding of the host country due to thecollaboration of the home company. In this case, the Chery Automobile was able to provide anin-depth knowledge about the expectations and demands of the Chinese customers to the Britishcompany. As a result, both the companies were able to decide and develop business andoperational strategies for conducting the business successfully. Similarly, the BX Shoes and theItalian partner had decided that if improper material is produced both the partners will work
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