global considerations Flashcards Preview

Business 3+ 4 > global considerations > Flashcards

Flashcards in global considerations Deck (12)
Loading flashcards...

global sourcing of inputs definition

involves selecting and using suppliers from an overseas location


positives of sourcing

- lower cost due to an advantage in economic resources resulting in cheaper labour.
- state of art equip is available that isnt in aus
- lower cost leads to increased competitiveness meaning they can sell overseas too


negatives of sourcing

- job losses in aus = csr issues
- no qual control in some countries
- takes time to import from overseas and could cause delays in production


overseas manufacture definition

when the processing stage of operation is conducted overseas


positives of manufacture.

- cheaper labour costs reduced sue to laws and regs overseas being lower
- minimal overseas taxes and increased incentives to manufacture in their country
- facilities are cheaper to buy / rent


negatives of manufacture

- shipping time
- less control over wages and conditions = csr
- less intellectual property laws
- initial start up costs high
- approval from gov is time consuming and costly


global outsourcing definition

when a business contracts another overseas business to perform its non core function


positives of outsourcing

-reduces labour costs
- fewer regs = cheaper
- opp to find skills and equip we cant in aus
- allows business to focus on its core functions
- improved qual through global expertise


negatives of outsourcing

- high risk as rep can be affected
- loss of jobs/ aus economy is affected
- staff may not be trained / poor quality
- could harm competitiveness


supply chain management definition

involves managing the range of supplies from which the business purchases its input resources, the flow of input through the operations system and the management of processes and businesses that are involved in getting the product to the end consumer


supply chain characteristics

- about improving efficiency in relation all activities and other businesses in production.
- has to ensure every step in process is efficient to enable ability to gain competitive advantage


how it ensures costs, quality and speed of delivery are maximised

- enough materials on hand to meet demand
- right quality material to enable business to produce quality products
- right priced materials to ensure competitiveness
- logistics and distribution will be efficient to get product to consumers faster than competitors