Analyzing Management Decisions in Supply Chain and Globalization

This assignment delves into critical management decisions, contrasting strategic and operational planning with a focus on the importance of vision, mission, and values in strategic planning. It examines the push/pull boundary in the supply chain, highlighting activities like cost avoidance and market share influence. The assignment further explores how companies should prepare for globalization through market research, diversity incorporation, and training. It emphasizes the significance of sourcing decisions in supply chain performance, addressing problems associated with warehouse management and recommending process outsourcing and single sourcing strategies for optimal results. The document concludes with relevant references, offering a comprehensive overview of key management considerations. Desklib provides access to similar solved assignments and resources for students.

RUNNING HEADER: Management questions
Management
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RUNNING HEADER: Management questions
1. Strategic planning decisions and operational planning decisions
Strategic planning involves the firm's process of evaluating its strategy, direction and also
modifying various decisions on the distribution of available resources required in order to pursue
this particular strategy. Some of the key components that enhance this decision-making process
include vision, mission, and values of the entire organization (Cavusgil, Knight, & Riesenberger,
2013). Evidently, it's a systematic and comprehensive formal document procedure for making
vital decisions which a firm should acquire right so as to be successful and achieve goals in the
future.
1. Decisions on marketing research. This is to identify the presence of rivals or competitors
and the current nature of the existing target market
2. Decisions to carry out a feasibility study on the retailer
3. Decisions on the cost-benefit analysis of a retailer's project to identify which project will
bring out maximum benefits to the retailer. For instance, if the retailer purchases a new
type of product which is much expensive and do not result in optimum benefits over
other products of advanced quality and technology.
Operational planning decisions are defined as a short-term and extremely detailed plan that is
designed by the management of an organization in order to reach tactical goals.
Evidently, the time frame of the decisions is the distinctive feature differentiating the two types
of decisions among process (Christopher, & Holweg, 2011).
It includes;
1. The input of various retail departments
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RUNNING HEADER: Management questions
2. Contribution ratio analysis to decide which process are significant to maximize
profitability
3. Identify financial position in case the retail is making losses and has weakness.
2. Push/pull boundary in the supply chain
This exists in locations where the demand curve moves from being reactive to a speculative
production process. For instance, in various bookstore retails, the boundary is located between
the client order cycle and the existing replenishment section. It is located in the stock holding
Activities taking place are;
 Avoiding the incurred cost of carrying inventory which might not result in sales in the
long run
 Market share influenced by various external forces
 Logistics
 Development activities
 Distribution
 Customers marketing the firm for the owner
3. How companies should prepare for globalization in terms of responsiveness
Firms should be well prepared when entering in international markets in order to take the golden
chance of acquiring cheaper suppliers and optimum control of the market share. Globalization, as
a dynamic tool comes with various risks that should be expected hence the ultimate need to
devise the following strategies to maintain competitiveness ability of the globalization forces;
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RUNNING HEADER: Management questions
Market research. One should invest in carrying extensive target market research, launch, evaluate
and establish potential demand for goods on target nations (Flynn, Huo, & Zhao, 2010). One
should also be highly aware of the taxation and logistics of product delivery. The management
should identify the merits of joining foreign stock exchange markets
Incorporate diversity and training. On should hire high caliber employees how to understand
foreign languages. This strategy ensures how employees relate to diverse local clients to ensure
increased market penetration. A training program should be designed in order to offer skills
regarding best ways for employees to interact with distinct subcultures.
4. Why sourcing decisions are the most important in supply chain performance
Strategic sourcing is the most significant factor since it helps to maximize the cost structure and
increase competitiveness nature of both small and large organizations. The core skills realized
are evaluating the large quantity of purchase (Christopher, & Holweg, 2011). Sourcing enables
the business to establish strong partnerships and relations with various suppliers hence increasing
reliability, reduce supply costs and acquire high-quality raw materials.
5. Problems of having no or single warehouse
Low inventory accuracy causing inappropriate shortages. This result in unfulfilled products
delivery and unsatisfied clients
Less space utilization or layout
Lack of inventory location oversight leading to various inefficiencies such as increased incurred
costs and slow activities
Problems of documentation
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RUNNING HEADER: Management questions
Amazon employees will waste time picking maximization for instance during shipment
Objectives of a firm finding other warehouses
To optimize on facility floor and layout
Reduction of labor cots
Management of seasonability in demand.
Reduce material handling and firm's equipment's cost
6. Sourcing
Answer. Yes
Sourcing strategy recommended
The business can use process outsourcing (BPO engagements model. These are significant since
they are comprehensive and also very selective
The best sourcing strategy recommended is the use of single sourcing. The electronic
components and office supplies should be from one supplier (Li Su, & Chen, 2011). This is
because it will result in strong relationships with having a small number of trustable suppliers of
the items. These mutual interdependence outcomes bring about the high quality of products,
increased reliance on suppliers, and the existence of extremely short lead times and improve
cooperative action.
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RUNNING HEADER: Management questions
References
Cavusgil, S. T., Knight, G. A., & Riesenberger, J. R. (2013). A framework for international
business. New Jersey: Pearson.
Christopher, M., & Holweg, M. (2011). "Supply Chain 2.0": Managing supply chains in the era
of turbulence. International Journal of Physical Distribution & Logistics Management,
41(1), 63-82.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on
performance: A contingency and configuration approach. Journal of operations
management, 28(1), 58-71.
Li, L., Su, Q., & Chen, X. (2011). Ensuring supply chain quality performance by applying the
SCOR model. International Journal of Production Research, 49(1), 33-57.
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