Research on Global Sourcing

Running head: RESEARCH ON GLOBAL SOURCING
RESEARCH ON GLOBAL SOURCING
Name of the Student
Name of the University
Author Note

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Acknowledgement
I would like to thank to all who have encouraged and helped me in doing this study. I am grateful
to my supervisor .............................. who has patiently guided and advised me through this
study. I am indebted to all the staff and academic members of ......................... [mention
college/university name] who have supported me to complete this thesis.
I thank all the parties who have participated in the research, including students, teachers and
local educational authorities, for their time and effort. I am also thankful to the individuals whose
research work has guided me in the execution of this entire process.
Last but not least, I would thank my family, whose unfaltering support and encouragement was
always there to ,motivate me in starting and completing this entire thesis. I would not have been
able to achieve this without your presence.

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Abstract
This research aims to inspect the problems and challenges faced by Scancom Plc based in Accra-
Ghana, an MTN or Mobile Telecommunications Network operator, in relation to global
sourcing. It is a subsidiary to MTN South Africa. Their primary challenge is IT and connectivity
infrastructure upgradation and emphasis on data and voice service provision which are
affordable, reliable and of good quality. The Internet of Things (IoT) on the internet generates
new data sources on the web every day. The issue that the telecommunication industry faces
from this is the difficulty in finding adequate credible sources of effective services. The other
problems identified in this relation are technology, scarcity of efficient management, production
capacity; in the international context the problems pertain to trade policies and regulations,
language and customs of other communities. There is a necessity at maintaining a standard in the
industry that is accepted globally. These challenges and issues mentioned above are being faced
by Scancom in the implementation of global sourcing of MTN in Accra-Ghana.
The need for a competent and stable telecommunication service in today’s world is what deems
this research relevant. This sort of service facilitates the masses to enjoy socialization,
communication, and many more. The significance of this research is that the problems that are
being encountered by the MTN industry can be critically analyzed by looking at the effect these
challenges are putting on the company as it tries global sourcing to counter them. This research
will also help in the development of concepts and ideas on global sourcing and its significance in
the business sector.
This study has implemented strategies such as positivism philosophy, deductive approach,
descriptive design, survey and interview. The sample size selected is of 50 persons using global

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network by random probability sampling technique through survey and 5 persons were selected
for non-probability sampling technique through interview. Therefore, primary data and
quantitative analysis technique has been performed for analyzing the same, with the use of
graphs and pie charts.
Scancom Plc, just like any other business organization places enough importance on global
sourcing. The company has the opportunity to gain advantage over its competitors and survive
market ferocity with the help of global sourcing. Nevertheless, the company should not mistake
global sourcing and international purchasing. This is because the former ensures long-term
benefits in the face of unpredictable difficulties and bottlenecks. It has been noticed from the
collected data from the survey and its subsequent analysis that business organizations find it
necessary to build relevant global sourcing strategies through risk identification and countering
challenges in suitable ways.

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Table of Contents
Chapter 1: Introduction....................................................................................................................8
1.0 Overview...........................................................................................................................8
1.1 Problem statement...............................................................................................................10
1.2 Research aim........................................................................................................................11
1.3 Research objectives.............................................................................................................11
1.4 Research questions...............................................................................................................12
1.5 Research rationale................................................................................................................12
1.6 Structure of the dissertation.................................................................................................13
1.7 Summary..............................................................................................................................13
Chapter 2: Literature review..........................................................................................................15
2.0 Overview..............................................................................................................................15
2.1 Conceptual framework.........................................................................................................16
2.2 Concept of global sourcing..................................................................................................17
2.3 Difference between international purchasing and global sourcing......................................17
2.4 Global sourcing model.........................................................................................................19
2.5 Drivers of global sourcing...................................................................................................19
2.6 Benefits of global sourcing..................................................................................................21
2.7 Risks from global sourcing..................................................................................................23

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2.8 Global sourcing and supply chain management..................................................................25
2.9 Problems and challenges of global sourcing.......................................................................26
2.9.1 Appropriateness of global sourcing..............................................................................26
2.9.2 Complicated logistics in global sourcing......................................................................27
2.9.3 Lingual and cultural difference in global sourcing.......................................................28
2.9.4 Political environment and volatile economic in global sourcing..................................29
2.9.5 Difference in regulations and standards in global sourcing..........................................30
2.9.6 Supplier selection complexity in global sourcing.........................................................30
2.9.7 Significant factors challenging the achievement global sourcing................................31
2.9.8 Fluctuating currency exchange rate in global sourcing................................................32
2.10 Summary............................................................................................................................33
Chapter 3: Research methodology.................................................................................................34
3.0 Overview..............................................................................................................................34
3.1 Research outline...................................................................................................................34
3.2 Research philosophy............................................................................................................35
3.2.1 Giving an explanation for applying positivism philosophy..........................................35
3.3 Research approach...............................................................................................................35
3.3.1 Giving an explanation for applying deductive approach..............................................36
3.4 Research design...................................................................................................................36
3.4.1 Giving an explanation for applying descriptive design................................................37

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3.5 Research strategy.................................................................................................................37
3.5.1 Giving an explanation for applying survey and interview research strategy................37
3.6 Sampling technique and sampling size................................................................................38
3.6.1 Giving an explanation for applying random probability and non-probability sampling
technique................................................................................................................................38
3.7 Data collection method........................................................................................................39
3.7.1 Giving an explanation for applying primary data collection process...........................39
3.8 Data analysis technique.......................................................................................................39
3.8.1 Giving an explanation for applying quantitative data analysis technique....................40
3.9 Ethical considerations..........................................................................................................40
3.10 Accessibility issues............................................................................................................41
3.11 Summary............................................................................................................................41
Chapter 4: Data analysis................................................................................................................43
4.0 Overview..............................................................................................................................43
4.1 Analysis...............................................................................................................................43
4.2 Interviews............................................................................................................................62
4.2.1 Overview.......................................................................................................................62
4.2.2 Transcripts....................................................................................................................62
4.3 Summary..............................................................................................................................72
References......................................................................................................................................80

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Appendices....................................................................................................................................90
Appendix 1.................................................................................................................................90
Survey questionnaire.............................................................................................................90
Appendix 2.................................................................................................................................97
Interview questions................................................................................................................97