Problems and Challenges of Global Sourcing

The article will focus on the problems and challenges that are faced in global sourcing. The focus will on the mobile telecommunications network in the remote area of Accra Ghana. As stated by Antras, Fort and Tintelnot (2017) one of the biggest problems that are faced by mobile networks is to provide its services in a global manner. The main reason for this is that proper understanding of the customers cannot be made that can help in the improvement of the services.

Running head: PROCUREMENT, SUPPLY CHAIN AND LOGISTICS
Problems and challenges of global sourcing: The case of mobile telecommunications network
(MTN), Accra-Ghana
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Chapter 1: Introduction..............................................................................................................2
1.0 Background......................................................................................................................2
1.1 Rationale..........................................................................................................................2
2. Research aim..........................................................................................................................2
3. Research objectives................................................................................................................3
4. Research questions.................................................................................................................3
5. Literature review....................................................................................................................4
5.1 Conceptual framework.....................................................................................................4
5.2 Concept of global sourcing..............................................................................................4
5.3 Process and models of global sourcing............................................................................5
5.4 Risk of global sourcing....................................................................................................6
6. Proposed methodology...........................................................................................................6
7. Anticipated findings...............................................................................................................7
Reference....................................................................................................................................8

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Chapter 1: Introduction
1.0 Background
The proposal will focus on the problems and challenges that are faced in global
sourcing. The focus will on the mobile telecommunications network in the remote area of
Accra Ghana. As stated by Antras, Fort and Tintelnot (2017) one of the biggest problems that
are faced by mobile networks is to provide its services in a global manner. The main reason
for this is that proper understanding of the customers cannot be made that can help in the
improvement of the services. The proposal will focus on the services performed with
emphasis on the global forces that determine the driving forces behind the development of the
services and its expansion to the people all around the world.
1.1 Rationale
The reason for undertaking this particular research is that in the modern world,
mobile network can be considered as essential for the establishing communication between
people and to indulge in online shopping and socialising. In the case of the development of
the network in Ghana, the challenges that can be faced by the mobile telecom networks is that
the country may not be able to reach out to the people all around the world due to lack of
strategic sourcing required for the development of the network. As observed by Gaudenzi et
al. (2019) difficulties and challenges can be in the form of supply chain management can be
considered as a challenge for the global service network.
2. Research aim
The aim of the research will be to uncover and evaluate the bottlenecks and
challenges that are faced by the Mobile Telecommunication Network situated in Ghana. The

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focus will be to assist the companies in the development of current sourcing strategy while
trying to outsource the services in a global manner.
3. Research objectives
The objectives of the research proposal will include:
 To understand the concept of global sourcing
 To evaluate the bottlenecks and challenges that is faced by the Mobile
Telecommunication Network
 To identify the impact of the challenges while trying to source the strategy in a global
manner
 To make recommendations about improving the strategies so that efficiency can be
maintained
4. Research questions
Based on the aim and objectives of the research proposal, the research questions that
will be framed for continuing with the proposal can be provided. These include:
 What is the concept of global sourcing?
 What are the bottlenecks and challenges that is faced by the Mobile
Telecommunication Network?
 What is the impact of the challenges while trying to source the strategy in a global
manner?
 What recommendations can be made about improving the strategies so that efficiency
can be maintained?

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Global sourcing
Price
Technology
Lack of materials domestically
Quality of domestic products
5. Literature review
5.1 Conceptual framework
Figure: Conceptual framework
(Source: Created by Author)
5.2 Concept of global sourcing
Global sourcing can be considered as sourcing from the global market for selling
goods and services across boundaries. According to Bickwit, Ornelas and Turner (2018),
global sourcing aims to exploit global efficiencies that help in the delivery of products and
services.
The difference between domestic sourcing, international purchasing and global
sourcing is that in domestic purchasing the rules and regulations are not complex whereas in
international purchasing the commercial purchase transactions are located in different

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countries. In the case of global sourcing the purchasing decision need to be elevated to a level
that require strategic decisions (Rottman and Lacity 2017).
The main driving forces behind global sourcing include lack of materials
domestically, quality of domestic products, price and technology. According to Nicholson,
Sahay and Heeks (2018), these forces help a company to develop strategies that can be used
for the development of a stable growth in the domestic as well international level.
Thereby the benefits of global sourcing can be analysed that may help a company to
embrace the strategy for its development in the competitive market. Some of the benefits
provided by the global sourcing include providing accessibility to higher quality goods at low
prices with the application of worldwide technology so that competitive position can be
enhanced (Berry and Kaul 2015). At the same time it helps in increasing the number of
suppliers and improves customer and delivery services by meeting the counter-trade
obligations.
5.3 Process and models of global sourcing
The influence of Centre for Advanced Purchasing and Supply at Arizona has been
influential in the development of a four step model for the development of global sourcing
process. The four steps include:
1. Domestic purchasing
2. Foreign buying based on need
3. Foreign buying as part of procurement
4. Integration of global procurement strategy

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This model can help in understanding the levels that exist in the global sourcing
strategy and the manner in which it can help in the development of the organisations that
takes into account (Kohler and Yalcin 2018).
5.4 Risk of global sourcing
The risk of global sourcing can be associated with the involvement of the cost saving
services of a company. Some of the risks that may arise due to this involves security risks,
cost risks, quality risks as well as intellectual property risks. According to Carballo (2016),
these risks can be considered as the factors that limit the existence of global sourcing for a
company as the lack of ability to understand the mitigation techniques for its development
may have a negative impact. In this regard, the model for difficulties and challenges that can
be associated with global sourcing can be taken into account.
As stated by Kukharskyy (2016) some of the models that can be used to understand
the challenges and limitations of global sourcing can be the application of holistic logistics in
low cost developing countries that may provide problems for procurement executives. At the
same time, another model that can be used is the various standards and regulations that may
help in the addressing the challenges of industrialisation in a country.
6. Proposed methodology
For the research application of positivism philosophy will be done as it will help in
facilitate the facts associated with the topic. At the same time deductive approach will be link
the topic with the existing theories and concepts to identify the challenges of global sourcing.
The application of descriptive design will be done to explore the current issues that are
associated with the global strategy.

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Both quantitative and qualitative research will be made by using information from
journals, conducting interviews and surveys and by conducting documentary analysis. Both
random probability and non-probability sampling techniques will be applied. The
questionnaire designed for the interview will be open-ended while the survey questions will
be close ended questions.
About 100 people using global networks will be used as samples for the development
of the research. Primary source of data collection will be made for conducting the survey
while secondary sources will be used for identifying journals and conducting documentary
analysis. The limitations associated with the research will be the lack of time and the
possibility of getting biased responses from the interview and the survey.
7. Anticipated findings
The anticipated findings from the proposal will be to understand the impact of the
challenges faced in the global strategy for the development of the Mobile Telecommunication
Network. The associated topic with the research proposal can be related to the model of
Global Supply chain management.

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Reference
Antras, P., Fort, T.C. and Tintelnot, F., 2017. The margins of global sourcing: Theory and
evidence from us firms. American Economic Review, 107(9), pp.2514-64.
Berry, H. and Kaul, A., 2015. Global sourcing and foreign knowledge seeking. Management
Science, 61(5), pp.1052-1071.
Bickwit, G., Ornelas, E. and Turner, J., 2018. DP13264 Preferential Trade Agreements and
Global Sourcing.
Carballo, J., 2016. Global sourcing under uncertainty.
Gaudenzi, B., Pellegrino, R., Zsidisin, G.A. and Bruggi, C., 2019. Foreign Exchange Risk
Mitigation Strategies in Global Sourcing: The Case of Vortice SPA. In Revisiting Supply
Chain Risk (pp. 407-419). Springer, Cham.
Kohler, W. and Yalcin, E. eds., 2018. Developments in Global Sourcing. MIT Press.
Kukharskyy, B., 2016. Relational contracts and global sourcing. Journal of International
Economics, 101, pp.123-147.
Nicholson, B., Sahay, S. and Heeks, R., 2018. Global sourcing and development: New
drivers, models, and impacts. Information Systems Journal, 28(3), pp.532-537.
Rottman, J. and Lacity, M., 2017. Role of Social Capital in Global Sourcing. In Global
Sourcing of Services: Strategies, Issues and Challenges (pp. 609-639).