This Applied Management Project is written on the concepts of Supply Network and Location. The scope of this report is broad as it would intend to accomplish its objectives with four different case studies. It is obvious that there is no operation in the world that exist in isolation. Each operation is seems to be an integral part of large and relatively interconnected network of various operations. This factor is known as Supply Network which involves two major stakeholders (Suppliers and Customers). The perspective of Supply Network refers to be as a concept of settling all given operations in a context by which it allows the company to interact with its suppliers and customers. It has been determined that of all aspects (Input Material, Raw Material, Other Information and even Individuals within an enterprise flow within the organisational network of customers-suppliers relationships build through all of the given operations. This concept assists company in understanding and realising its competitiveness within the specified industry. Major disadvantage of this concept of Supply Network is that it implied an organisation to create intimacy with few suppliers and it has been examined that this would be resulted in strengthening the company’s suppliers bargaining power as the switching cost would get increase. Specifically, there are two stimuli (supply-side factors and demand side factors) that frequently intend organisations in changing their existing locations. This stimulus of relocating (supply-side factors) is more related with the changes in term of available resources or in term of direct or indirect cost. Whereas, the other stimulus (demand side factors) is more focused on the convenience of company’s customers. Additionally, there are five contemporary practices (Reconfiguration, Disintermediation, Co-opetition, Insourcing and Outsourcing) that could be adopted for the configuring of supply network. It has been recommended that the concept of Supply Network is of great worth specifically in companies’ operations. The companies that recognised and realised its importance have been managed to outsmart its rival by offering innovative products or through the creative approach of selling. Therefore the aspect of location decision is important in relation to the exploration and evaluation of predictable outcome of specified operations. [...]
Table of Contents
Section-1: Background Context with Aims & Objectives
1.1. Background Context
1.2. Problem Statement
1.3. Research Aim & Objectives
Section-2: Literature Review
2.1. Perspective of Supply Network
2.1.1. Merits of Supply Network
2.1.2. Demerits of Supply Network
2.2. Location Decisions
2.2.1. Two Primary Reasons for Location Decision
2.2.1.1. Changes in Supply
2.2.1.2. Changes in Demand
2.2.2. Major Objectives of Location Decision
2.2.3. Supply-side Factors
2.2.3.1. Labour Costs
2.2.3.2. Land Costs
2.2.3.3. Energy Costs
2.2.3.4. Transportation Costs
2.2.3.5. Community Factors
2.2.4. Demand Side Factors
2.2.4.1. Labour Skills
2.2.4.2. Suitability Factor of Site
2.2.4.3. Location Image & Reputation
2.2.4.4. Customers’ Convenience
2.3. Five Contemporary Practices for Configuring the Supply Network
2.3.1. Reconfiguration (Changing the form of Supply Network)
2.3.2. Disintermediation
2.3.3. Co-opetition
2.3.4. In-Sourcing
2.3.5. Outsourcing
Section-3: Case Studies, Analysis & Discussion
3.1. Case Studies
3.1.1. Case Study on the Perspective of Supply Network
3.1.2. Case Study on the Location Decision Making
3.1.3. Case Study on Case Study on the Configuring of Supply Network (Reconfiguring)
3.1.4. Case Study on Case Study on the Configuring of Supply Network (Outsourcing)
3.2. Analysis
3.3. Discussion
Section-4: Conclusion & Recommendations
4.1. Conclusion
4.2. Recommendations
Objectives and Core Themes
The primary objective of this report is to analyze the significance of supply network management and the strategic factors influencing location decisions. It evaluates how businesses can optimize their competitive position by integrating contemporary practices into their operations and addresses the fundamental trade-offs involved in configuring supply networks.
- The importance of supply network perspectives in operations management.
- Key factors influencing corporate location decisions (supply-side vs. demand-side).
- Contemporary supply network configuration strategies including reconfiguration, disintermediation, and co-opetition.
- The strategic impact of in-sourcing and outsourcing on organizational performance.
- Real-world application of these concepts through case studies like Dell and Disney.
Excerpt from the Book
1.1. Background Context
It is obvious that there is no operation in the world that exist in isolation. Each operation is seems to be an integral part of large and relatively interconnected network of various operations (Slack et al., 2007). This factor is known as Supply Network which involves two major stakeholders (Suppliers and Customers). And sometime it could be extended up to the company’s suppliers’ suppliers and customers’ customers (Barnes, 2008). It has been determined that operations managers are usually involved at strategic level for the designing of Supply Network’s shape and form (Watson et al., 2012). Moreover, the designing process of Supply Network starts with the formulation of certain strategic objectives that would assist an organisation to decide over certain approaches (how organisation wanted to make impact on its supply network overall shape, how it would locate its operations and how it would be possible to configure activities within the company’s existing supply network).
The perspective of Supply Network refers to be as a concept of settling all given operations in a context by which it allows the company to interact with its suppliers and customers. It has been determined that of all aspects (Input Material, Raw Material, Other Information and even Individuals within an enterprise flow within the organisational network of customers-suppliers relationships build through all of the given operations. This concept assists company in understanding and realising its competitiveness within the specified industry. It also helps company in signifying the important relationships (links) existing within its company’s supply chain network and also intends a company to orient more on long-term issues. Major disadvantage of this concept of Supply Network is that it implied an organisation to create intimacy with few suppliers and it has been examined that this would be resulted in strengthening the company’s suppliers bargaining power as the switching cost would get increase. Additionally, if this factor would not manage in a proper manner then it would incur more costs than the existing practices and in this manner it would also make negative impact on company’s profitability and quality aspects.
Summary of Chapters
Section-1: Background Context with Aims & Objectives: This chapter introduces the foundational concept of supply networks as interconnected operations and defines the research scope and objectives regarding supply chain and location strategies.
Section-2: Literature Review: This section provides a theoretical overview of supply network perspectives, examines drivers for location decisions, and details five contemporary configuration practices like outsourcing and reconfiguration.
Section-3: Case Studies, Analysis & Discussion: This chapter applies theoretical frameworks to real-world corporate examples, including Dell, Disney, and Magna, to analyze the practical outcomes of supply network and location strategies.
Section-4: Conclusion & Recommendations: This final section summarizes the research findings and suggests how organizations can effectively leverage supply network configurations to maintain competitive advantages.
Key Words
Supply Network, Location Decision, Operations Management, Reconfiguration, Disintermediation, Co-opetition, In-Sourcing, Outsourcing, Supply-side Factors, Demand-side Factors, Competitive Advantage, Vertical Integration, Customer Convenience, Strategic Objectives, Dell Case Study.
Frequently Asked Questions
What is the core focus of this management project?
The project focuses on the concepts of supply networks and location decisions within international business, examining how organizations manage interconnected operations to achieve competitive advantages.
What are the primary thematic areas covered?
The themes include the strategic design of supply networks, drivers for business relocation (supply-side and demand-side factors), and five contemporary configuration practices: reconfiguration, disintermediation, co-opetition, in-sourcing, and outsourcing.
What is the overarching research goal?
The aim is to identify the importance of the supply network perspective, evaluate factors that influence location decision-making, and learn about five contemporary practices used to configure supply operations.
Which scientific or analytical methods are utilized?
The research employs a qualitative approach using literature reviews and multiple case study analyses of global companies to examine and validate management theories in practice.
What does the main body of the work address?
The main body investigates the theoretical framework of supply networks, analyzes the "twin objectives" of cost and customer service in location decisions, and reviews specific business models like Dell's "Built to Order" system.
Which keywords best characterize this work?
Key terms include Supply Network, Location Decision, Outsourcing, Reconfiguration, and Competitive Advantage.
How did Dell successfully eliminate intermediaries?
Dell utilized its "Built to Order" business model to interact directly with customers, removing the need for traditional distributors and retailers while gathering valuable consumer insights.
Why was the location decision for Disneyland Paris significant?
It was a major strategic decision based on demographic analysis, transportation infrastructure, and financial inducements from the French government, highlighting the complex factors involved in global site selection.
- Quote paper
- Junaid Javaid (Author), 2013, Hyundai's Decision to Location & Supply Networks, Munich, GRIN Verlag, https://www.grin.com/document/279773
