GLOBALIZATION
2 examples of Globalization
Internet helps connect everyone in the world
Business outsource raw materials
People can travel to everywhere in the world
Different part of the supply chain of a product can be done in multiple countries.
Identify the steps in the Supply Chain Management
1. Raw materials
2. Supplier
3. Manufacturer
4. Distribution
5. Retailer
6. Customers
Define TNC and give examples
TNC = Transnational Corporation, which is a business which operates in more than one country.
Examples: Nike, Adidas, Starbucks
Define CSR and give examples
CSR = Corporate Social Responsibility is when businesses that go above and beyond the legal requirements to benefit the welfare of the stakeholders, environment and wider community
Giving 2 examples of each areas of CSR
1. Environment: recyclable packaging, reuse materials, reduce waste during production
2. Community: sponsored events, charity, providing work for disadvantaged youth,
3. Staffing: having diversity in the workplace, employing staffs from multiple backgrounds, extended parental leave
4. Operation: reducing waste during operation, being efficient with the use of raw materials, reducing water use during production
Define GLOBALIZATION
Globalisation is a trend that sees people, money, goods and ideas move around the world faster and cheaper than before.
Define SUPPLY CHAIN
Supply Chain Management (SCM) is the handling of the flow of goods and services from the raw manufacturing of the product through to the consumption by the consumer
Identify 2 winners, 2 losers of globalization
Winner:
- Big companies
- Rich countries
- Skilled and educated people who are opened up to the opportunity to increase their profit and expand their business.
Loser:
- Unskilled and poorly educated people
- Developing or underdeveloped countries
Identify 4 areas of CSR
1. Environment
2. Community
3. Staffing
4. Operation
Define STAKEHOLDERS, RAG TRADE
Stakeholders are any group or business that has a vested interest in the activities undertaken by a business, they can also be directly affected by the companies performance and decisions
Rag trade is modern day production of items at a lower quality than previously.
3 factors that fuel Globalization
Internet
Travel
Telecommunication
Describe the steps involved in the Supply Chain Management process for a car
1. Raw materials: Aluminum, Steel, Copper, Fiber, Metals
2. Supplier
3. Manufacturer
4. Distribution
5. Retailer
6. Customer
How does globalization impact you? Give examples
Positive or negative
Explain
Discuss CSR
Advantages
- Possible profit increase
- Positive corporate image
- Employee retention
- Increase productivity
- Increase in customers
- Competitive advantage
- Societal attitudes
Disadvantages
- Expensive to implement
- Time-consuming
- Hard to change policies
- Effects supply chain
- Scrutinised by the public/ must be transparent
Giving 2 examples of each for Internal and External stakeholders
Internal stakeholders: employees, manager, owners, shareholders
External stakeholders: suppliers, customers, government, interest groups
Discuss GLOBALIZATION
Advantages:
- Business can operate on a global scale, making more money
- Consumers can choose from a wider range of goods and services
Disadvantages:
- Has lead to exploitation of workers, especially in developing countries
- Loss of jobs in developed countries
- Loss of economic control
- An increasing economic divide between Globalisation “winners” (skilled and educated people) and “losers” (unskilled and poorly educated people).
- Impacts on the environment through the overuse of resources and constant pollution especially in developing countries
Discuss the use of overseas manufacturer
Advantages:
- It helps save cost of raw materials because...
- Overseas manufacturers may have a rich resources of raw materials that may not be available in our country
Disadvantages:
- There could be delay in shipping time because....
- Business cannot control the manufacturing process if they use overseas manufacturer
Define CORPORATE GREED
Corporations are using those increasing costs – of materials, components and labor – as excuses to increase their prices even higher, resulting in bigger profits.
Describe the impact of CSR on competitors
It makes the competitors re-consider their strategies and may implement CSR strategies in an effort to attract more customers
Describe the impact that CSR may have customers
Customer may have positive impression about the business, thus, going to buy more
Explain the relationship between TNC and Globalization
Globalisation give rise to the development of TNC where they can expand their business to all over the world and take advantage of the global connection in terms of goods and service to generate more profit
Explain the relationship between Sweatshop, Supply Chain Management and Globalization
Globalisation is a trend that sees people, money, goods and ideas move around the world faster and cheaper than before. Business may put different parts of their supply chain in different countries to take advantages of the rich resource of raw materials and low cost of labour. This is partially responsible for the rise of sweatshop in developing countries where legal requirements are not strict and big business can exploit workers without being fined.
Explain the similarities between these 2 concepts: CORPORATE GREED and SWEATSHOP
They are both about the purpose of maximising profit
Evaluate the benefits and costs of purchasing an existing business or starting a new business
**PURCHASING AN EXISTING BUSINESS
ADVANTAGES:
It already has a company’s name and brand image, and a client base, and employees so it already has a foundation for the business
Products are already launch on the market, so it is more likely to be profitable.
DISADVANTAGES:
* The business may have some sales issues in the past, so that would lead to bankruptcy
* Business is already set up so the new business owner does not have the Freedom to change the business direction or brand image
**START MY OWN BUSINESS
ADVANTAGES:
Creativity and freedom: The owner can create and run the business the way that they want
All of the profit go to the business owner
DISADVANTAGES:
* Higher risk to your assets because the possibility of success of the business is still uncertain
* Time-consuming: Business owner have to start the business from scratch
Give 1 example of business that used GREENWASHING
H&M