Included as well are other numerous products. Economic distance is derived through wealth differences and distance in economics results in a decrease in trade. Linguistic distance is the most severe in the range of distance impacts with second in sensitivity being administrative distance followed by geographic and then finally economic distance being the less in the range of sensitivity to impact on product because of existing distance.
Distance is often created by the target country government and resulting is a raising of "barriers to foreign competition." (Ghemawat, 2001) the factors that arise from these barriers include "...tariffs, trade quotas, restrictions on foreign direct investment and preferences for domestic competitors in the form of subsidies and favoritism in regulation and procurement." (Ghemawat, 2001) Measurement criteria is stated as the following:
1) the company is a large employer;
2) the company is seen as a national champion;
3) the measures of protection are required and vital to national security;
4) the company produces staples;
5) the company is a producer of 'entitlement' services or goods;
6) the company exploits resources that are natural;
7) the company is in an industry that makes requirements of "large, geography-specific sun investments" (example: oil). (Ghemawat, 2001)
SUMMARY & CONCLUSION
There are four basic dimensions of distance related in the work of Ghemawat (2001) including cultural, administrative, geographic and economic dimensions. The severity of the distance in cultural linguistic terms is much more severe than are economic conditions with administrative and geographic distances falling in the midrange of the ranges of distance severities. The work of Boerner (2008) reiterates these dimensions that exist and which are more distance dimensions than merely geographical distances existing between companies. These distances affect decision-making in the company. These four dimensions are referred to as the 'CAGE' model and is one in which these various dimensions, factors of those dimensions, and the result due to distance factors are identified. The work of Frankel and Rose as stated in the work of Ghemawat (2001) sets out distance attributes and percentage change in international trade between countries due to the attributes that are listed. Attributes of cultural distance...
(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when
Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands
Supply Chain Management Hypothesis defined Concepts of SCM and the evolution to its present day form Critical factors that affect SCM Trust Information sharing and Knowledge management Culture and Belief -- impact on SCM Global environment and Supply Chain management "Social" and "soft" parameter required for SCM Uncertainties This chapter aims to give an outline and scope of the study that will be undertaken in this work. The study lays out the issues faced by manufacturing organizations when it comes
Supply Chain Management at DIMCO The supply chain relates to the entire cycle and process through which raw materials are purchased, processed and developed in to goods and services which can be traded in the market. The management of such a process would involve creating improvements in the supply chain itself to make it more profitable and efficient for the company (Davis, 1993). Therefore the supply chain encompasses not only raw
Supply Chain Ann Supply Chain Management Annotated Bibliography Chopra, S., & Meindl, P. (2010). Supply chain management: Strategy, planning and operation (4th ed.).Upper Saddle River, NJ: Prentice Hall The text by Chopra & Meindl (2010) is an excellent starting point for this discussion, primarily because it serves as a rather exhaustive introductory reading on the subject. Providing academic explanation of the basic premise of supply chain management and an extensive investigation of the
Supply Chain Management related to DIMCO Supply Chain Management and other issues related to DIMCO In this paper, we will determine whether integration efforts should start with suppliers, distributors or both for the firm DIMCO. We will also attempt to explain the rationale for our decision, after this we will recommend ways that DIMCO could benefit from leveraging B2B e-Commerce. We will then determine what steps DIMCO could take in order to
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now