Category: Management

Introduction

Outsourcing is a strategy used in supply chain management to reduce the overall running costs of a firm. For instance, firms procure material inputs or services from outside instead of generating them from within. The strategy aims at reducing the primary cost of establishing such a production or service department within the company. Because such establishments are capital intensive, the firm may opt to avoid such costs through outsourcing. International outsourcing is on the other hand used to ensure efficiency as the firm seeks to bring the services near to its clients and consumers. Although such outsourcing may provide benefits in terms of diversification of outreach and risk, the high cost involved in establishing a call center may trigger the bank to outsource such services from a firm located within the country under which the branch operates in. This paper seeks to analyze and discuss the outsourcing strategy used in supply chain management, specifically the call center for a bank.

The reason why banks should prefer outsourcing their call center

The high amounts required in establishing a reliable and affordable communication infrastructure may be far from reach making the institution think of acquiring the services from outside. The growing telecommunication and internet expansion has also made such activities relatively cheap in the market. The company here will therefore evaluate the feasibility of the service and thus determine whether to own or buy it from outside. Because outsourcing or off-shoring passes the employment and other administrative costs to the identified firm, the principal firm is exonerated from all the risks related to the department. In some instances institutions such as banks are forced to offshore their call center to suit the language and the cultural system of the local people in which the branch operates. this will further bring quality service delivery as the local firm in which the services are outsourced are much aware of the cultural values of the people within that country.

The Scottish call center will therefore not be effective as its operated from a different country. If for instance, the bank is planning to establish its operations in the Indian market, it will be advisable for it to outsource call services from an Indian firm to enhance efficiency (Schniederjans, Schniederjans & Schniederjans, 2005, p.25). The Indian firm will effectively serve the needs of the banks clients as they are conversant with the market. The language will also not be a problem to such a firm as its operations are undertaken within the country. The low cost associated with the service will also be a saving to the bank which is out to maximize profit. Since the identified firm specializes in customer care services the bank will be assured of obtaining the best services at all times. The continued growth and maturity of the contact center outsourcers provide excellent services to their clients thus satisfying their customers. In most cases, the customer even never realizes that they are dealing with outsourcers. This is mostly if these firms operate effectively and efficiently.

Since a bank may have some key sensitive issues which may not be outsourced, the firms provides some in-house facilities which enable them to manage such queries. This facility therefore ensures that every issue relating to the customer is professionally handled. It also enhances customer trust and faith on the banks products and services. The increased satisfaction therefore attracts the more customers increasing the banks profitability (Barnes, D., 2008p.215).

It is also well reflected in the outsourcing industry that status quo maintenance is not enough, the firms are in this case required to keep on adding value to their clients. The continuous growth in the sector makes it a good alternative whenever the firm needs growth and continuity into the future. Since the service off shoring may require some transfer of valuable information into the offshore site, the move will add some technological know-how into the respective destination. Such transfers also assist in the growth and development of various regions in a particular country. The growing need for market responsiveness has increased the outsourcing demands. This is because banks and other firms are only interested with maximizing their profits and they therefore do all they can to reduce cost in their operations (Goodman & Hastak, 2006p.14-27). The firms also seek to transfer risk and responsibilities to other companies and they thus mitigate those using external companies. Many companies therefore prefer the horizontal integration in the outsourcing industry in order to effectively relate well with the involved parties. The outsourcing industry has significantly low cost considering the increased human capital generated in the developing countries. The large corporations such as banks will therefore choose to use it instead of establishing an in-house service department which will cost more to the firm. The advanced computerization that banks operates in makes it easy for them to outsource their services as it is easy to coordinate and monitor.

Negative implications of outsourcing

There are however some supply chain concerns that companies may end up losing the overall control and visibility due to the outsourcing strategy. This is more so depending on the status that the outsourced companies possesses in the principal company. But this will however be wholly determined by the importance of the service and the value which its add to the firms overall welfare. There is some inherent risk of uncertainty when the customer acknowledges the fact they are dealing with an outsourced firm. This risk however is due to the negative perception that the consumer have towards the whole outsourcing process. Most of the customers thinks that the basic reason why a firm will decide to outsource a service or a product is due to some financial constrain. But this is not the case as there are other factors which push a firm to use an outsourcing strategy. The service outsourced may not be of great economic importance to the firm. In such a scenario the firm will prefer to delegate the responsibility to the third party which happens to be the outsourced company (Sadler, 2007p.199).

The considerable rise of such companies in the market has led to huge job insecurity in the market. This is because the employing companies have an alternative choice incase its employees increases their salary and motivational demands. The move therefore receives a lot of rejection from the company staffs as they fully acknowledge that their services too can be outsourced. The outsourcing strategy therefore ends up receiving great rejection from the management despite its effectiveness to the company.

As knowledge, information and technology is transferred from one country to another, competition in the industry increases. The competition concern mainly comes in because the outsourced company will consistently add value to the client firm making it more competitive than other firms in the same industry. The transfers are also said to be a huge loss to the national or domestic economy under which the firm initially operated in. capital freight, and also some brain drain effect will be felt as the firm re-locates its operations to another country.

The growth of the outsourcing strategy raises some educational concern to the respective governments. This is because the availability of adequate expertise and knowledge is also a key determinant that causes outsourcing in a company. If many companies in a certain country prefer outsourcing their services from other countries, then that government should do something to raise the standard and level of its education system as it may be far below others in the world (Monczka, Handfield & Giunipero, 2008, p.749).

Recommendation

The bank should consider outsourcing its call center in order to ensure efficiency in the service delivery. The move will also seek to effectively address the needs to the banks customers as more quality services will be accorded. Outsourcing will also encourage professionalism in the banking services as the firms guarantees quality for their continuity. Considering the capital intensity involved in establishing a call center in the respective country and the cultural diversity in the region, it will be more economical if the bank outsources the service. The easy and close monitoring between the parties involved also encourages such contractual obligation.

Reference

Barnes, D., 2008. Operations management: an international perspective. London, Cengage Learning EMEA. (Online). Web.

Goodman, A.S. & Hastak, M., 2006. Infrastructure planning handbook: planning, engineering, and economics. London, McGraw-Hill Professional. (Online). Web.

Monczka, R.M., Handfield, R.B. & Giunipero, L., 2008. Purchasing and Supply Chain Management. London, Cengage Learning. (Online). Web.

Sadler, I., 2007. Logistics and supply chain integration. London, SAGE. (Online). Web.

Schniederjans, M.J., Schniederjans, A.M. & Schniederjans, D.G., 2005. Outsourcing and insourcing in an international context. New York, M.E. Sharpe. (Online). Web.

Introduction

The process of production in the modern world involves numerous concerns. One of these concerns is organizing the logistics of raw materials and goods. These operations are considered parts of the supply chain. In our paper, we will examine supply chain management (SCM) and consider some aspects that should be kept in mind when dealing with supply chains.

Main text

The supply chain is a crucial part of any business. Proper SCM can provide businesses with numerous competitive advantages, the most obvious of which is the advantage of time and cost. Choosing a dependable supplier of high-quality raw materials is also of major importance. Customers who receive high-quality products fast eventually create a positive reputation for the company. This is why a very popular practice in the modern world of business is to document its supply chain and make it publicly available, or even use it as an advertisement. A good reputation attracts new clients, and also makes the business interesting for investors (CSR Compass n.d.). Moreover, the business, having a favorable reputation, becomes a desired workplace, which means an abundance of qualified human resources. These factors ensure the companys functioning and development in the future. Thus, proper SCM can bring a competitive advantage concerning the time and money spent on the product, the firms reputation, and, as a result, the general efficacy of the business (Seghal, 2011).

Financial innovation is a key element in maintaining and improving supply chains. C. Dwight Klappich, as cited by Poirier, Quinn, and Swink (2010), states that supply chains are three-legged stools, and the legs of these stools are product, information, and finance; these three elements of the supply chain should be synchronized (p. 55). Poirier et al. (2010) provide an example of a multibillion-dollar corporation, which, having carefully analyzed the actions of its SCM, was able to conclude that a third of all the actions that were taken could be disposed of, as they had hardly any effect. The execution of a new plan which emerged as the result of the analysis was enough to double the companys earnings for each share (p. 71-73). Authors, thus, promote close collaboration between the supply chain and the financial groups, as well as stress the role of the financial leaders of a company in employing innovations (Poirier et al., 2010, p. 73). Mention and Torkkeli (2014) also emphasize that innovation is only successfully implemented by executives who greet change and can turn it into profit for their organization.

As was already mentioned, a reliable supplier of raw materials is essential for any supply chain. Thus, strategic sourcing, a procurement process that unceasingly tries to reassess and upgrade the organizations buying activity, might be considered an important element of any SCM. Being a part of the financial management, strategic sourcing aims to choose the best supplies available and to ensure that the process of production is planned and provided with the necessary components far in advance. Strategic sourcing also involves monitoring the suppliers activity as well as leveraging the companys spending. The results of strategic sourcing are lower cost and better quality of the rendered services. It also maintains and enhances the production efficacy of a company (Maromonte, 2008).

As can be seen, in the modern global world of business, supply chains are becoming exceedingly advanced, and often rivalry emerges among them (Zhang & Okoroafo, 2015). This results in demand for highly qualified SCM which can successfully operate in such circumstances. Thus, Zhang and Okoroafo (2015) recommend employing third-party logistics (3PL). 3PL provides a vast number of benefits for a business. Its four main basic features are proficiencies in range, expertise, search capability, and information technology. 3PL, thus, takes the responsibility for and thoroughly resolves the complications of gathering, covering, storing, and delivering goods (Zhang & Okoroafo, 2015). The consequences of 3PL are decreasing expenditures of the supply chain and the disposal of the consumption of its time resources.

Let us now consider a simple example of a supply chain familiar virtually to everyone. To install new windows in your familys apartment, your family can dismount the old ones, go to a windows factory or a retail outlet and buy a set of windows, transport them to the apartment, and find people to put them in. This would involve a large number of operations related to gathering information, choosing the necessary product, finding workers, and even organizing finances while deciding which people to hire, what shop to buy from, etc. Another option is turning to a firm that specializes in installing windows. The firm here will partially play the role of 3PL. It will give you options to choose from (probably more options than you could have found yourself, as it is easier for firms than for natural persons to e.g. buy something from foreign companies), and will organize the necessary actions needed to install new windows. The firm will quite likely give you a warranty as well. Thus, by turning to the windows firm, which, to a certain extent, plays the role of 3PL, you will save time. You will possibly economize some money, because it is easier for the firm to organize everything economically, and in case of problems you will be compensated according to the warranty.

Conclusion

As we have seen, SCM is a crucial part of any business, as it maintains its functioning, and attracts customers and investors. Financial innovations are important for making SCM efficient and can economize vast amounts of money for a company. If a business chooses to manage its supply chains on its own, it should not be forgotten that strategic sourcing results in lower cost and better quality of the companys products. And, finally, 3PL can be a good, economical option for modern companies.

References

CSR Compass. (n.d.). Benefits of responsible supply chain management. 2015. Web.

Maromonte, K. R. (2008). Corporate strategic business sourcing. Westport, Conn.: Quorum Books.

Mention, A. L., & Torkkeli, M. (2014). Innovation in financial services. Newcastle-upon-Tyne, UK: Cambridge Scholars Publishing.

Poirier, C. C., Quinn, F. J., & Swink, M. L. (2010). Diagnosing Greatness: Ten traits of the best supply chains. Fort Lauderdale, FL: J-Ross Publishing.

Seghal, V. (2011). Understanding Advantage. Web.

Zhang, H., & Okoroafo, S. C. (2015). Third-party logistics (3PL) and supply chain performance in the Chinese market: A conceptual framework. Engineering Management Research, 4(1), 38-48.

Introduction

Management is an important part of any business. Many success stories in the business world have been due to effective management practices. This paper is an analysis of the concept of management and how it relates to business. It embarks on a series of research questions into the most crucial part of management which is leadership.

Main text

Management is a term that is used to broadly mean the:

process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected goals (Koontz & Weihrich 2004).

It involves the processes of planning, organizing (co-coordinating), leading, and controlling. Management is also responsible for such activities as listed below:

1. Infrastructural development which includes: accounting, finance, strategic planning;
2. human resource management which includes recruiting, training, and development of existing competencies, compensation management such as pension and welfare benefits;
3. technology development which includes: product and process improvement through new innovations, and lastly procurement (material acquisition of the necessary raw materials for the organization (What does management mean, n.d.).

Let us look at the functions of management in detail.

Planning. It involves making a blueprint for the organization as to how to achieve objectives and the future plans of the company in the short and long term. It is the first step in a business management model.

Organizing. It involves the marshaling of resources and works force to implement the objectives set out in the plan. It involves co-coordinating the various departments by assigning certain tasks to individuals and departments in the company.

Leading. It is the most crucial part and it entails directing and influencing individuals to perform tasks. It calls for effective communication and use of power as well as motivation to ensure that subordinates effectively carry out organizational tasks.

Controlling. This is the function that calls for ensuring that the company does not deviate from the main objectives of the organization by ensuring that performance standards that have been established are in sync with those standards which are being met. It also calls for taking corrective measures upon the realization that these standards are not being met or achieved.

According to Mintzberg as quoted by Koontz and Weihrich (2004, p.16), a manager has the following ten roles:

Interpersonal roles

Under this, he identified these key roles:

• The figurehead role is the ceremonial role of being the social representative of the organization.
• The leader of the organization has been discussed above.
• The liaison role to other companies in the market.

Informational roles

Under this, we have the roles of:

• The recipient role involves receiving information about the organization with regards to the market, competition, products, and the subordinates.
• The disseminator role involves the communication of information to the subordinates such as training ideas, business objectives as well to the shareholders.
• The spokesperson role entails disseminating information about the organization to outsiders like the media on recent stock turnovers and profit margins.

Decision roles

Under this, we have these roles:

• The entrepreneurial role involves making decisive decisions about which direction to lead the company in and the possible benefits of taking different risks to develop the organization.
• Disturbance-handler role of taking responsibility for the mistakes made and taking corrective measures.
• Resource allocator role involving making decisions on how to use the various resources available and in which proportions.
• Negotiator role of dealing with various people and mediating or arbitrating where necessary.

This next section will deal with the leadership aspect of management as the overall basis for this research paper. This paper is interested in solving the question of leadership inefficiencies. The research question that directed my analysis of leadership is as follows: What factors account for the effectiveness of some leaders and perpetual growth in their companies while others get side-tracked and less effective in the senior levels of management?

The research methodology undertaken in this paper is in form of questionnaires. Some of these questions are listed below:

What are the personal attributes that interact or combine with the organizations day-to-day activities? This question seeks to establish the qualities of an effective leader in making a company successful with a look at how these work well for the leader in promoting and sustaining growth.

Is good or bad leadership a different qualitative phenomenon? According to Sternberg (2007), good leaders exercise a degree of intelligence, creativity, and knowledge in managing organizations. Bad leaders however show a lack of wisdom and cognitive irrationalities that inhibit their efficiency in their leadership roles.

How do leaders adapt to changes in the business environment during the course of their professional careers so as to continually advance their organizations agenda into positive growth? This question seeks to answer the age-old question what makes them different This question seeks to understand why do some leaders lag behind in the face of change while others soldier on exploring new things to achieve success (Lindberg & Craig 2006, pp.12-30).

How can leaders be helped to learn from past experiences? This question looks at the specific aspect of seeing failures and mistakes as slip-ups that should be inspected in order to prevent their recurrence. This question seeks to establish why good leaders will not blame external forces or others for errors but will instead enlist a collaborative approach to push the organization forward. This may involve raising anxiety arousing questions that call for a chronological reflection of the mistakes maybe and making a collaborative effort in preventing these errors from recurring (Hackman & Wageman 2007, pp.43-47).

The data needed to answer these questions is mostly from respondents of questionnaires, statistical records of leading business companies as well as articles related to successful leaders, and lastly, interviews conducted with selected company executives who have excelled in their organizations and with those who may not have had such luck.

The expected challenges in carrying out this research include:

• Unresponsive respondents may feel ashamed of their failures as leaders in their respective organizations.
• Some respondents may not wish to divulge their secrets of success.
• It may also prove to be difficult to get a one-on-one audience with some multinational executives.

I find this research particularly fascinating and challenging as it forms the most crucial part of management in my opinion. People are ready to work harder in their organizations under effective and efficient leadership that motivates and works together with the subordinates and not at in abdication. The leader should work in collaboration with the subordinates and not in an authoritarian or laissez-faire manner. This, I think, is what makes for a substantive effect on good management and effective leadership.

Conclusion

In conclusion, this research paper summarizes the topic of leadership through analysis and formulation of the basic question of what makes for good leadership and how leaders can embrace change in order to enhance their leadership skills and in turn the affect the growth of the organization. It establishes what sort of data can be used to collect information on this topic and it relates it to management as a whole. Lastly, it looks at the challenges or limitations in conducting this research study.

References

Hackman, J R & Wageman R 2007, Asking the right questions about leadership, American Psychologist, pp. 43-47, Web.

Koontz, H & Weihrich, H 2004, Essentials of Management, (5th ed.), McGraw-Hill, New Delhi.

Sternberg, R J 2007, A Systems Model of Leadership: WICS, American Psychologist, no. 62, pp.34-42, Web.

Lindberg, J T & Craig B S 2006, The Qualitative Study of Leadership: research methods and Substantive Findings, Center for Creative Leadership, pp.12-30, Web.

What Does Management Mean (n.d.), Universal teacher Publications, 2010. Web.

Introduction

A successful business strategy will assist individuals in determining where their resources and capabilities are better spent by assisting them in identifying their strengths and limitations. These choices are critical to the companys long-term profitability and viability. An organizations strategic management methodology consists of basic concepts explaining how a firm will achieve its objectives. It will, for instance, describe how to deal with opponents, assess client wants and aspirations, and analyze long-term expansion. Walmarts strategy will make progress since it defines its targeted customers and has the resources and technology to develop internal working practices.

Walmarts Business Strategy

A companys strategy is related to transforming an organizations performance into one that fosters and realizes the firms mission and objective. The terminology of leadership, strategy, control, and strategic management are all intertwined, and their definitions are all debated to some extent (McGrath, 2021). The companys overall strategic framework, which is designed with the businesss goal and vision in reference, is at the foundation of every corporate strategy. Strategic planning is a crucial factor in determining the features of an organizations strategy. Once a firms strategic planning is done, all of the companys goals and priorities should be centered on achieving them. A strategic plan plots a companys path to a future target, which is determined by the organizational purpose or how it identifies and explains its reason for existence.

Strategic management entails the continuous planning, supervision, analysis, and evaluation of all requirements a business must meet to achieve its goals and ambitions. Shifts in the business climate will need firms to reassess their performance methods on a regular basis. Strategic management is concerned with the design and elaboration of initiatives in the realm of management. Product portfolio elaboration, marketing strategy creation to enhance sales, human resource plan for personnel development, and finance strategy are examples and aspects of strategic management.

Walmart has evolved from its humble origins as a tiny discount retailer in Rogers, Arkansas, to numerous locations across the United States of America and overseas. Walmart not only modifies local relationships to satisfy its purposes; alternatively, it successfully faces external factors impacting and responding to local conditions and connections (Stubblefield, 2019). Everyday low prices on a wide range anytime, anywhere  is the central component of Walmarts strategy, and the emphasis on pricing has never been more intense (Walmart, 2022). The firm recognizes its purpose as developing a consistent experience for customers to purchase online and in stores at any time and from any place via innovation (Walmart, 2022). The organizations aim is to create strong local companies driven by Walmart while producing benefits for the firm and its partners and having a significant influence on stakeholders. In addition, to strengthen its core operations, Walmart is forming strategic alliances through equity investments (Walmart, 2022). Customers and societies all across the world benefit from the companys creation of possibilities and benefits.

The strategic management of the Walmart organization focuses on the framework of retail service by prioritizing efficiency and cost-effectiveness. Walmarts functional competitive advantage approach, as well as its intense growth tactics, put an emphasis on reduced costs and low retail prices (Walmart, 2022). Walmarts competitive strategy relies on becoming the lowest-cost firm in its industry, offering distinctive items for which customers are willing to pay the best price. The strategy is further subdivided into cost strategy, which concentrates on addressing a certain segment in their area by altering goods or services to meet customer needs. To differentiate itself from its competitors, the focused approach refers to a certain group of people, a specific geographic region, or even a unique product line and market sector. Walmart is providing a convenient shopping experience by allowing consumers to scan things while they browse and then pay with their smartphones (Walmart, 2022). Since Walmart has been effective in ensuring its low-cost approach through an excellent installation and assessment process, they should preserve its one-of-a-kind solution, as other businesses may try to copy its procurement operations.

Employees and the company communicate openly in order to encourage new ideas, take the initiative, and pursue excellence. It prioritizes workers professional growth by offering fair pay and extensive benefits. In fact, in Walmart, a leader prepares for their role through career development since Walmart attempts to focus its human resource strategies on educating and training its own employees rather than hiring from outside (Stubblefield, 2019). It is feasible to state that the organizations strategy will be a success since Walmart recognizes its target audience and possesses all the tools and technologies required to constantly improve internal working procedures and policies.

Conclusion

To summarize, strategic management comprises the ongoing planning, supervision, analysis, and assessment of all requirements a company must accomplish to meet its objectives. Walmarts approach is related to offering everyday low prices on a wide range of products, anytime, anyplace. Walmarts strategic management prioritizes efficiency and cost-effectiveness while focusing on the framework of retail service. Walmarts plan will be successful since it appreciates its target audience and has all of the tools and technology necessary to continuously enhance internal working processes and regulations.

References

Walmart. (2022). About Walmart. Walmart.

McGrath, S. K. (2021). Leadership and Strategic Management. Springer, Singapore.

Stubblefield, C. (2019). Walmart in the Global South: Workplace culture, labor politics, and supply chains. Canadian Journal of Latin American and Caribbean Studies, 44(2), 252-253.

Wells Fargo management style is particularly a leadership system that is known to recognize self-drive, team play as well as great execution. Teamwork is very important in creating an environment of business success since it allows diversity of ideas. Wells Fargo believes in teamwork and self-motivation by all employees as well as leaders. Wells has given the opportunity for all its employees to contribute in the success of the company. They believe that leadership starts with true respect towards everyone working around the company. Wells Fargo has great respect for individual talents and thus they believe that great ideas are not only found with the executive but rather it can be found anywhere. In this way, they believe that an environment should be set where talent will be able to flourish. The company does not believe that when one is in a higher position he/she is better than the others are. (Fiedler)

Wells Fargo feels that leadership is important in all stages. In this way, all leadership in different departments plays a great role in the success of the company. Wells feels that leadership involves a unified career set up, which encompasses ongoing learning, constant training prospects and instruction. The company believes that leadership stems from a united business society as much as it can work in a decentralized organization. The concept of shared ideas and communication of universal standards is what brings the company together. The leader at the same time should promote the place of work diversity by hiring people with corresponding abilities and expertise. The company believes that diversity is essential since it gives the company an opportunity to access solutions that may have been ignored. In this way, diversity improves the companys potential to perform. (Tittemore)

Wells Fargo has a number of formal communication strategies in their leadership that helps in lifting the company. They have the segment for leadership seminars mainly for leaders and those who could be possible leaders in the company. These seminars are meant to offer an atmosphere of personal innovation and discovery in relation to leadership. In this way, it is a kind of strategy to establishing skillfulness and developing talents. The seminars are mainly undertaken away from the company in order to benefit from education and networking prospects. The seminars are mostly developmental and are not corrective therefore are not suitable for those not performing. This therefore requires the participants to be well aware of their individual responsibilities. These seminars are very educative and help advance the work of the leaders to the company.

Wells Fargo has managed to incorporate a number of informal communication programs in their company to motivate employees in their work. (Vroom, Yetton)

For instance, the Take Five credit program is designed to promote informal acknowledgement among employees working together. Wells Fargos leadership stresses the need to have a little time to appreciate and be familiar with the colleagues at work. This could be saving five seconds to tell someone thank you, five minutes to send a welcome email to a colleague or even to take five months to offer wisdom, ideas and common values. This kind of an informal program allows employees to realize that it is not about finances all the time but rather about shared considerations. Wells Fargo employees have also another informal program where they make products points when they are appreciated for good performance by their colleagues. This unites the employees and they feel part of the company as much as the executive suit. This is very important in creating loyalty and helps in branding the company.

Works Cited

Fiedler, Fred E. A theory of leadership effectiveness. McGraw-Hill: Harper and Row Publishers Inc.1967.Print

Tittemore, James A. Leadership at all Levels. Canada: Boskwa Publishing.2003.Print.

Vroom, Victor H; Yetton, Phillip, W. Leadership and Decision-Making. Pittsburgh: University of Pittsburgh Press.1973.Print

Background and Overview of SGs Current Challenges

For a company operating in the environment of the global economy, it is especially difficult to facilitate the creation of the environment in which the companys inventory can be managed successfully. Scientific Glass, Inc. (SC) is not an exception to the identified phenomenon; according to the case study, the organization has been experiencing difficulties with the alignment of the processes associated with the overseas sales and distribution. The identified phenomenon can be easily explained by the lack of transparency in the processes that are implemented by the representatives of the companys departments at different stages of the supply chain management process, especially when carrying out the actions related to the overseas transactions. Therefore, there is a strong need to introduce better visibility into inventory management in SG.

Another issue that SG is likely to face when managing inventory in the context of the global economy is building a team of dedicated experts. Making sure that the newly recruited staff members follow the companys policies closely and base their decisions on corporate values, ethics, and standards are essential. Thus, the firm will be able to promote loyalty among the staff members, at the same time creating the environment in which consistent quality improvement can become a possibility.

Finally, the issue of inventory control should be brought up. One of the trickiest tasks that SG is yet to carry out, the process of establishing a rigid system of inventory control requires a consistent quality improvement. Furthermore, to make sure that every single process is controlled appropriately, the managers will have to either compel the staff members to accept the corporate standards and rules so that no supervision should be needed or, on the contrary, establish a rigid system of supervising the employees and the crucial processes related to inventory management.

The issues outlined above pose an admittedly difficult challenge for the company to face. To handle the identified problems, SG will have to reconsider its current approach toward inventory management, as well as alter its policies in the SCM and even introduce improvements to the current leadership framework. Thus, the efficacy of information management and, therefore, the overall performance level of the organization can be improved (Kerber & Dreckshage, 2016).

Inventory Projections for 2010

At present, it is assumed that SG will be able to succeed as long as the appropriate measures for securing the SCM-related processes are taken. Particularly, with the enhancement of loyalty levels among the staff members and the subsequent improvement in the quality and speed of data transfer, one will be able to attain impressive results.

As the table above shows, the current inventory forecast for SG is rather positive. However, the outcome can be improved successfully with the introduction of new tools for managing the financial operations and the processes within the companys supply chain. Therefore, there is a strong need in addressing some of the transparency- and loyalty-related issues. As soon as the identified goals are accomplished, a rapid rise in the efficacy of the organizations processes can be expected.

One must admit, though, that the process soft eh companys recovery may take some time. Even though the effects of the newly adopted strategy will be evident within a relatively short amount of time, the actual transfer to a new system of SCM will take much more. Particularly, it is assumed that the changes to the firms design will become apparent in the next several months.

Description of Possible Alternatives to Deal with the Inventory Problem

Apart from the approaches identified above, one may consider using the framework that allows balancing between a consistent improvement of technology and the efficacy of internal processes. There is no secret that successful management of the companys inventory is related directly to the ability of the firms managers to use the available data efficiently, manage the schedule, and carry out the crucial financial transactions without any errors within a relatively short amount of time. Therefore, it is imperative to utilize all possible tools that create the environment for making the specified processes faster and reducing the number of errors made in the course of their completion. Thus, employees must be encouraged to use the available technology and train the skills required to operate the latest and the most advanced equipment. The incorporation of IT tools can be viewed as the means of enhancing the time management process since the identified tools allow coordinating the actions of the participants in a more efficient manner and, therefore, avoid the issues such as delays caused by misconceptions.

Apart from the promotion of IT in the target environment, one should consider possible issues associated with misaligned metrics, as well as the means of avoiding the identified issues. As stressed above, it is crucial to make sure that the measurement tools used to assess the productivity of the company remain efficient throughout the SCM process. Otherwise, the company is bound to face the instances in which it will take excessive costs. As a result, the supply chain will be under the threat of being disrupted, which, I turn, will lead to a significant drop in productivity levels.

Thus, SG can remain competitive and develop an efficient inventory management system. However, for this goal to be accomplished, it is crucial to redesign the companys current approach toward managing the SCM process. Particularly, a focus on the consistent improvement of the related processes must be set. Furthermore, it is crucial to introduce the tools that will allow for a more efficient data management strategy. Particularly the use of IT devices as the means of enhancing the information transfer and avoiding the instances of misinterpreting information should be considered a necessity.

There is an array of ways of dealing with the inventory-associated issues at SG. However, in each case, a closer focus on the issues related to the SCM framework, in general, and the data management processes, in particular, is required. As soon as the premises for reducing the instances of misunderstanding or misinterpreting the information are created, a breakthrough is expected.

References

Kerber, B., & Dreckshage, B. J. (2016). Lean supply chain management essentials: A framework for materials managers. Chicago, IL: CRC Press.

Introduction

eBay Inc., a leader in payment, is a global commerce platform established in 1995 in San Jose, California. It connects millions of sellers and buyers (Kassem 2022, p. 1). They accomplish this by using GSI, which enables e-commerce, digital marketing, and multichannel retailing for multinational corporations (Zarra et al. 2019, p. 3). Argos Limited, purchased by Sainsburys in 2016 and doing business as Argos, is a catalog retail store based in Ireland and the United Kingdom (UddinAhmed et al. 2020, p. 3). Unlike eBay, in addition to online visitors, they have physical stores in demand. Argos and eBay are among the leading e-commerce marketplace that enables users to sell and purchase. The two companies have programs and tools to ensure their talents develop and grow as they work for them.

Strengths/Weaknesses/Opportunities/Threats

A measure of management effectiveness strongly impacts employee productivity and company results. If the managers competence is insufficient, the situation may get out of control, and the employees will lose their desire to work. A loss of motivation and a decrease in enthusiasm may result in dismissal to find a better job. Such cases are provided for by the companys Knowledge Management System, respectively, managers should be able to prevent such situations. The performance and effectiveness of the team and the managers interaction with their subordinates are directly correlated (Ban et al. 2018, 1681). Argos is an example of a company that encourages the enthusiasm of its employees and allows them to express themselves. This is ensured through their Knowledge Management System, which gives employees the opportunity to participate in strategic development. In order to implement successful strategies for all regions of its work, Argos supports the growth of the enthusiasm of its employees. The principles of Argos allow the company to succeed and not be afraid of change, leading to sustainable business development. Additionally, the business uses initiatives focused on enhancing employee satisfaction and advancing leadership practices consistent with sustainable development to recruit, keep, and develop talent (Ban et al. 2018, p. 1680). All mentioned factors are strengths that are important for creating a positive working climate in the company and contributing to the development of employees and management.

Employees and line managers actively use the implementation plan in employee development plans as working materials, which correlates with their Knowledge Management System. They provide personal development for the employee, increasing their ability to perform better, retain the best talent, and achieve company goals. This enables performance management and is a component of a long-term plan that prioritizes business expansion and system improvement (Mahmoud et al. 2019, p. 112). Argos and eBay need to use one of their greatest assets  the talent of their employees  to keep their sales momentum. Employees will be much more motivated and show more professional qualities when they understand they are essential and appreciated. All these development plans are a perfect example of how the company implements its Knowledge Management Systems.

Weaknesses

One of the main weaknesses of e-commerce companies is scammers. Companies like Argos and eBay can often run into scammers who pose as sellers but swindle people out of money. In addition, scammers can pretend to be employees of eBay or Argos in order to lure people out of their personal information. This significantly harms the working climate of companies and reduces the enthusiasm of their employees, which can negatively affect the results of companies. This damages the Knowledge Management System of companies because it becomes difficult to identify a dishonest seller.

Opportunities

To improve their performance, eBay employees work on their development plans to help them improve their skills. They may partner with managers and other team members for coaching and mentorship. In addition, they invest in cutting-edge technologies that facilitate continuous learning and teaching, such as on-demand courses, personalized learning environments, and unique channels for ongoing employee feedback. The development of technology helps to improve the Knowledge Management System, which will facilitate the work of employees.

Argos is committed to continuing the education of its employees and offers financial assistance for region-specific professional degrees and certifications. Argos is using a 10-20-70 approach to address development gaps. According to this framework, learning occurs through direct performance in 70% of cases, 20% through interaction with colleagues, and 10% through theory (Trinidad 2022). The phrase performance evaluation describes the routine evaluation of labor productivity and overall business value (Al-Jedaia and Mehrez 2020, p. 2077). This is a great example of how a companys strategy fits into its Knowledge Management System. Performance appraisal, sometimes called an annual appraisal, performance appraisal or review, or employee appraisal evaluates an employees ability, success, and developmentor lack thereof. At Argos, managers and employees evaluate each others contributions to corporate goals and how they can improve their skills to acquire the capabilities the company needs. This process is cyclical and continuous.

Threats

Items, users, and the reputation system are the components of an e-commerce system. Such an organization is directly related to the Knowledge Management System because it is part of the data. In their online stores, merchants promote their products and list the price for each item (Bogenschneider 2021). Customers making purchases in online stores can leave reviews about sellers to tell how the product matches its description. This results in a reputation system for sellers on sites such as Argos and eBay. However, the main disadvantage of such a system is that reviews can be easily cheated, thereby editing the statistics in the right direction. This can significantly threaten online stores as it destroys fair competition and negatively impacts employees.

Another threat may be the trend of isolationism in the economy. Some laws govern how user data can be used, how employees are treated, and how to protect the environment. These strict rules challenge Argos; a good example is the Paris Agreement (2016) (Allan 2019, p. 5; Zimm and Nakisenovitch 2020, p. 460). Pandemics such as COVID-19 also threaten e-commerce and physical stores and are associated with currency fluctuations, especially given the unpredictable political environment and bilateral laws in many international markets. However, since eBay does not have an offline store, this affected Argos more. After conducting a SWOT analysis of these companies, we can say that their Knowledge Management Systems are quite similar and differ only in specific areas.

Critical Evaluation of both Organizations Knowledge Management Value Chain

The companys management adheres to a value capture strategy created along the chain to maintain competitiveness. This approach has a substantial competitive difference, such as the difference in the value chains of competing companies. Value is the price customers are willing to pay when prices are competitive. Total revenue, which reflects the price a companys product attracts and the number of units it can sell, is used to measure value (Grebe et al. 2021, p. 190). The business can be considered profitable if the products final cost exceeds its manufacturers cost.

The most crucial element in promoting goods so that buyers are ready to purchase goods at a price suitable for the company is marketing. Fundamentals such as finance, skilled workforce, unique services, and products are some critical areas considered brand strength (El-Ebiari, 2021 p. 6532). Growth during the COVID-19 pandemic was a turning point for companies as it prevented them from collapsing or falling in the face of the pandemic and provided a better user base.

eBay and Argos acquire every workers performance, skills, and abilities through the KM value chain and use this knowledge to incentivize their talents. The organization must establish and manage complex practices in the knowledge management value chain to improve the efficiency of factor knowledge. Similarly, it is an essential competitive tool during a pandemic. The KM value chain process includes knowledge inventory, development, exchange, application, and evaluation of knowledge.

Using strategic objectives, the company can decide what knowledge and skills employees need to solve the tasks. One of the key methods of knowledge creation for managers is the integration of different types of knowledge into a new body of knowledge (Sanchez 2003, p. 108). This can be achieved in various ways, including training employees and acquiring knowledge from third parties. Knowledge must be shared throughout the company after it has been created so that everyone can use it and create high value for knowledge.

Employee records should be systematized so that it would be clear to navigate what personnel the company lacks. The data of employees currently working in the organization is easier to control than to create a list of necessary ones (Sajjad et al. 2005, p. 104). Detailed knowledge results from processing, organizing, structuring, and interpreting data. Similarly, it is easier to collect, share, and store data, which is most relevant to knowledge management (Hill 2022). It is this knowledge that eBay and Argos use to promote employees and help them grow. The practical implementation of explicit knowledge is known as tacit knowledge. Implicit knowledge is likely to exist throughout eBay and Argos (Loudon and Loudon 2014, p. 3). A good example would be doing a task with other workmates. Brainstorming different ways to see work done can lead to discussing available methods for completing a task (Miller and Dess 1993, p. 555; Senge 1990, p. 11). Brainstorming using tacit knowledge identifies critical areas and steps to take. People retain abilities from personal and past environmental commitments called tacit knowledge (Smith 2001, p. 312). Implicit knowledge implements implicit knowledge, unique to eBay and Argos, in the workplace.

Numerous methods are constantly being improved to support the evaluation of streaming data. eBay uses several tools, including Apache Spark, Kafka, Hortonworks HDF, and Storm (Zhu et al. 2022, p. 2). This means that as many people can use the information as possible with the appropriate degree of permission and security. This allows business data engineers to look for information markers associated with data. In addition, it uses Presto, Hadoops collaborative query engine. The firm has pioneered the use of big data and is actively celebrating the open-source community by sharing its expertise.

Heavy use of data lakes has limitations, as HR often has more problems than explanations. Without knowledge of what data is available, how it can be used, what it assumes, the parts that can be trusted, and how it was obtained, data users may not be able to efficiently maximize data (Porter 2008, p. 81). Working in a data lake can be daunting without an easy way to ask for help or even find someone who might have an explanation. eBay has turned the idea of data management on its head to achieve this. Because of its independent and innovative culture, eBay requires an open strategy that gives data users access and control and encourages innovation and experimentation (Caruso 2017, p. 45). eBays approach to data management is based on gaining in-depth knowledge of each data item and making it available to customers as part of their standard workflows in an algorithmic manner rather than restricting and controlling access. Understanding customer habits is important (Frésard and Valta 2015, p. 3). eBay tracks every aspect of how data assets are used, how often the information is accessed, who accesses it, and how it is accessed, right down to the fulfillment of specific requests.

Argos

After competitive bidding, Argos decided to test the eGain KnowledgeAgentTM with a small group of its resellers in the Appliances Aftermarket and Services department. With the help of the knowledge base, it became intuitively more accessible for Argos representatives to solve complex customer requests, knowing about this particular problem in the past (Newing et al. 2020, p. 460). To improve customer satisfaction, the efficiency of contact center consultants, and the level of detail of the first contact, it was decided to implement a rigorous knowledge management system due to the increasing complexity of requests for household goods and services (Porter and Advantage 1985, p. 168). However, knowledge is not only a consequence of filtering or algorithms. It is the product of a much more purposeful, complex social, cultural, and contextually limited process (Weinberger 2010). Based on the pilot project, they noted a significant quality of the operational service processes, with a 10 percent reduction in repeat calls and a sharp decrease in avoidable returns and technologist consultations.

The company has programs such as the Network Engineering Apprenticeship, which helps workers hone their skills and advance in their careers (Newing et al. 2020). The scale of Sainsburys allows employees to become familiar with different technologies, procedures, and people. The organization also provides opportunities to participate in meaningful projects and provide workplace assistance for critical business systems. Colleagues of the organization receive the skills they need for their professional future and the opportunity to earn while studying through an apprenticeship program that connects them with experts in their field who have specialized knowledge.

Early Careers programs help employees and job seekers develop a career at Sainsbury or change career paths. The Jumpstart program, one of several programs they offer, helps high-potential graduates and undergraduate applicants succeed (Newing et al. 2020). The company also offers a paid internship program that helps second, and third-year students develop business knowledge and experience where it is appropriate to use their studies. Helping their internal workers to adapt and advance their professions quickly, they run a Bootcamp program during the onboarding period.

eBay

eBay has several employees and executive development programs. These programs, such as the Financial Leadership Development Program (FLDP), are designed to meet the companys needs. Through this competition initiative, participants can develop their technical and leadership skills while enhancing their business skills. Working on challenging projects, each FLDP cohort receives intensive leadership training and senior management mentorship. Participants are provided with important positions that qualify them for future financial leadership positions upon completion of the program. Participants of the program meet in San Jose a week before the start of each cycle, at which time they concentrate on the study of management. Employees become more familiar with the dynamics of different teams and groups through methods they learn in a matter of weeks. eBays investment are driven by a desire to keep up with the rapid pace of digitalization to make it easier for data customers to use and find the data they want (Zhu et al. 2022, p. 2). The incentive plans for both eBay and Argos are similar in that bonuses and allowances are added to the base salary.

Conclusion

In the modern world, the specifics of work are changing dramatically due to the development of technology. However, Argos and eBay still use the same workforce planning and human resource management methods. Argos, like eBay, must adapt to the digital age by redesigning the workplace. Argos talent management and planning need to become more strategic, comprehensive, rigorous, and data-driven. Companies restructuring using traditional analog methodologies will lag behind more forward-thinking competitors. According to an analysis by eBay and Argos, both companies face various challenges ranging from knowledge development to retaining talent within the organization (Bocij et al. 2018, p. 44). Argos, compared to eBay, has a higher attrition rate. Argos high turnover rates mean they have little to no employee retention. Both companies can retain individual workers and avoid hiring costs by changing this. The measures taken to retain workers do not seem to be working enough. By selecting suitable candidates, the respective HR departments of the two companies have the responsibility and the ability to influence the rate of employee turnover and therefore ensure the availability of available talent in the future.

eBay and Argos, which have to deal with a repetitive workflow, make most employees feel bored, which contributes to not fulfilling their potential in personal and career development. It is imperative that the two companies reconsider which skill sets will be most valuable in a progressive technological future, cultivate them among the working population, and attract the best talent after they emerge from a pandemic that has challenged assumptions about workplace behavior to meet requirements (Ryport and Sviokla 1995, p. 76; Porter 1980, p. 6). Both companies must understand what future talent and their current employees may want from them to stay ahead of the curve. Future managers would be looking for a job with a value proposition that was very different from what attracted employees five or ten years ago, regardless of the pandemic. This generations demands include diversity, flexible hours, autonomy, inclusion, and a deep connection with their managers.

Human-machine learning algorithms should be used across the entire range of HR activities as eBay gathers more and more data about current and future employees, including information about each persons potential, ability, performance, and ability to learn new skills and adapt to new roles upon assignment. With the help of information technology, both companies were able to hire, use, develop and retain talent much more efficiently and cheaply. Both Argos and eBay have not fully utilized the labor force data they have. They have just begun to scratch the surface.

The report states that eBay and Argos have put in place several programs to ensure that their talent develops and grows throughout their time with them. eBay has programs such as the Financial Leadership Development Program. In contrast, Argos has initiatives such as early career development programs and network engineering training that enable workers to continue their careers while earning. These programs ensure that these companies retain their best employees as they are trained in managerial skills to take on higher positions in the company in the future. Since the respective companies support these programs, it motivates employees to develop and grow, and the reward also becomes attractive as they climb the hierarchical ladder in the workplace.

Recommendations

When dealing with resource management, security, information systems, and talent management programs in general, eBay and Argos must consider the knowledge protection aspect of IP security. Information security of IP is a knowledge-intensive task, which largely depends on the abilities and knowledge of IP specialists and the consciousness of end users. While Argos has well-trained staff, eBay should emphasize training its staff, so they become more familiar with knowledge management and information-sharing tools. Argos should focus on forecasting tools that can drive their knowledge to ensure they can forecast demand as it comes.

Another recommendation is encouraging innovation among the companys talent to create a competitive advantage. Argos and eBay can compete in the e-commerce sector through innovation. Market share can be increased by creating or improving an innovative product that can support eBays corporate purpose and goals. Another suggestion is to create more strategic alliances with other parties, including courier services. This offering improves service reliability to counteract the significant bargaining power of customers. Such strategic alliances also partly offset the modest bargaining power of suppliers noted in this external study. According to this study by eBay Inc. and Argos, the companys plans should also consider the dangers of replacements and new members. To address these issues, continuous development of the service is recommended.

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Introduction

Nintendo is a Japan based Company founded in the 20^th century by Fusajiro Yamauchi. This company specializes in the making of video games.

An Analysis of the company

Although this company had at first been founded to make playing cards, its innovation and excellent leadership has helped it become one of the three major companies respected for making video games. This success has been achieved through dedication, staff training and innovation in terms of technology to use at a particular time.

This company has deliberately lowered the prices of most of its products. This is a strategic move to penetrate the market with ease. To achieve this, the company uses cost effective materials but of high quality.

Nintendo has been recruiting some of its engineers directly from the universities. This is a bold idea because the students have fresh ideas that help improve on the existing technology within the company. In addition, this idea can be seen to enhance continuity in the company. That is there is no vacuum left when the most experienced people in the company leave because the new recruits will have learnt what is required of them.

Venturing into new markets and especially in the United States of America and parts of Europe has further made this company continue growing. These are emerging markets, having spent many years localized in Japan. More customers translate to more revenue.

Conclusion

Nintendo should act as an example to other companies. This is because it has proved that patience and dedication can play a great role in the making of a mighty institution.

Introduction

The project pre-report investigates the global pet goods market and addresses significant components of Japans and Venezuelas international business environments. Japan, for instance, is shown as one of the most successful markets for pet product producers. On the contrary, Venezuela is a highly challenging environment for U.S. and worldwide businesses due to its economic and political crisis.

Industry Analysis

The great majority of pet owners regard their pets to be family members. According to Fortune Business Insights (2021), pet care products are becoming more popular as people get more information about animal welfare and well-being. The key global industry players are Mars Incorporated and Spectrum Brands Inc from the U.S., Unicharm Corporation from Japan, and Neste S.A. from Switzerland (Fortune Business Insights, 2021). The markets leading players focus on expansion, mergers and acquisitions, and new product development (Grand View Research, n.d.). Pet care items are classified into several categories: food, hygiene, toys, and others. Global market size is expected to increase from 222.93 billion in 2021 to 325.74 billion dollars in 2028 (Fortune Business Insights, 2021). Based on industry data, the most recent trend is changing dietary food products to boost the market (Fortune Business Insights, 2021). For instance, pet dogs are afflicted by obesity issues in many countries worldwide.

Consequently, the need for dietary food items to keep pets healthy will rise. Another critical trend is the increased desire for plant-based and healthful food items (Fortune Business Insights, 2021). The popularity of subscription-based dog and cat toy services is projected to fuel the need for animal toy items (Fortune Business Insights, 2021). Finally, increased demand for high-quality animal hygiene products is projected to drive market growth.

The crucial factors for a companys success within the global pet products industry include following trends, such as dry natural and organic pet food, canned food, hygiene products, and a wide variety of toys. The convenience features of dry organic and natural pet food are expected to promote product demand (Grand View Research, n.d.). Unlike most traditional pet feeds, organic and natural pet foods are widely utilized. Canned food is more appealing to dogs and cats since it contains proteins, lipids, and a few carbs (Grand View Research, n.d.). Additionally, wet pet food is easier to digest, which keeps backyard cleanup to a minimum.

Significantly, the companies may focus heavily on the dog pet type category. Based on Research and Markets (2022), this sector is predicted to account for most of the industry share between 2022 and 2030. Healthy freeze-dried dog food to lengthen shelf life is one of the fastest-growing specialty food categories (Research and Markets, 2022). Thus, non-traditional pet food formats are expanding quicker than standard pet food options. On-demand video content about pet care and hygiene is also expected to promote market development (Fortune Business Insights, 2021). Product differentiation is crucial in growing pet food sales (Grand View Research, n.d.). Hence, companies competing in the industry should focus on developing premium quality unique products to expand their current portfolios.

Components of International Business Environment

Japan and Venezuela have been selected as the target markets to be investigated compared to the U.S. domestic market. For instance, Japan is the second largest market for U.S. pet food exports, accounting for 16.4 percent of the market, thanks to a growing pet population and four years of pet food sales increase (Tyler, 2021). Venezuelas protracted economic and political crisis has badly harmed the local pet food industry in many ways, and it is critical to investigate strategies to better expand into this market (Franco, 2019). Each countrys relevant components of the international business environment, such as trade barriers, labor, legal and political systems, and cultural preferences, should be addressed.

Japan

Japan is one of the most successful ymarkets for pet product companies. For instance, according to Diep (2022), as animal companions become more incorporated into the modern home structure and valued as family members, pet costs are no longer driven by cost-effectiveness. Instead, owners lavish attention on their pets, with childless households perceiving pets as a substitute for having a kid (Diep, 2022). Furthermore, in an aging culture confronted with the problems of declining fertility, the number of cats and dogs in private houses has long outnumbered the number of children.

Trade Restrictions

Notably, trade agreements exist between Japan and the United States. The United States-Japan Trade Agreement and the United States-Japan Digital Trade Agreement are examples (International Trade Administration, 2022). While tariffs are typically low, Japan does have various non-tariff obstacles that may impede or delay the entry of foreign commodities into Japan (International Trade Administration, 2022). For instance, some sectors or projects may require corporations to establish past expertise in Japan, thus excluding new entrants into the market.

Labor

Labor is less expensive in Japan than in the United States. According to Nation Master (n.d.), the hourly minimum wage in Japan is $5.64. There is also a minimal probability of strikes, as Japanese employees are concerned with laws and processes (Nation Master, n.d.). Nonetheless, the language barrier might be an issue for the company.

Legal and Political System

Japan is an essential member of international trade with a stable political system. The market upholds the rule of law and offers robust intellectual and property rights protection (International Trade Administration, 2022). One of the barriers to setting up a business is that official regulations promote domestically produced goods while opposing international goods (International Trade Administration, 2022). Moreover, cross-holding and connectivity of commercial interests among Japanese firms disadvantage suppliers from outside Japan.

Cultural Preferences

The United States was compared to Japan via the Hofstede Cultural Insights tool. For instance, American society is individualistic, but Japanese society is collectivistic (Japan and United States, n.d.). Additionally, Japan is hierarchical, and each management level must approve all corporate choices.

Venezuela

A few pet brands were sold in Venezuelan supermarkets for a long time. Purina products like Dog Chow, Perranina, and K-Nina are the most regularly encountered (Franco, 2019). Super Can and Dogourmet, made by Empresas Polar, are other brands occasionally seen (Franco, 2019). Hence, local pet owners are increasingly using food scraps, chicken feet, kidneys, or, in some cases, pig chow for pet food.

Trade Restrictions

For more than fifteen years, the United States has implemented sanctions in reaction to Venezuelan government actions. Nevertheless, sanctions do not prohibit U.S. citizens from exporting or reexporting goods to Venezuela as long as the transactions do not include sanctioned individuals or businesses or specified banned activities (U.S. Department of the Treasure, 2019). Additionally, The U.S. and the interim administration led by Interim President Guaido work closely together to restore democracy and relationships peacefully.

Labor

The labor is cheaper in Venezuela compared to the United States. Venezuelas minimum wages have been changed from March 15, 2022 (WageIndicator, 2022). The new minimum wage is 130 Venezuelan bolivars per month, which equates to $12.7. Although Venezuela has cheap labor, it is not easy to start a business there. There are 17 processes to be performed, compared to the OECD average of five and the Latin and Caribbean average of nine (Top 10 challenges, n.d.). In Venezuela, starting a business takes an average of 144 days.

Legal and Political System

Venezuelas extended economic and political crisis has harmed the local pet food sector in several ways. Along with hyperinflation, there is a generalized scarcity of raw materials for pet food production, making it difficult for local enterprises to stay in business (Franco, 2019). Most significantly, some people can no longer afford to pay for pet products. Venezuela is an exceedingly challenging environment for U.S. and global enterprises. The reasons are governmental interference in the economy, including expropriations, macroeconomic distortions, physical insecurity, corruption, abuses of worker rights, and a fluctuating regulatory framework (Bureau of Western Hemisphere Affairs, 2022). Therefore, numerous American and international corporations decreased or ceased their Venezuelan operations.

Cultural Preferences

The Hofstede Cultural Insights tool was used to compare Venezuela to the United States. For instance, whereas American society is individualistic, Venezuela has one of the lowest Individualist ratings (Venezuela and United States, n.d.). Venezuela is also the most performance-oriented country in Latin America.

Strategic Management Project Report

The project report discusses strategic choices and alternatives for two specific markets, Venezuela and Japan. Because it provides for the balance of global and local viewpoints, the transnational approach was selected as the best international strategy. Furthermore, because Venezuela poses several challenges, the corporation is advised to concentrate its efforts exclusively on the Japanese market. Nonetheless, direct export was offered as a means of entering Venezuela. Furthermore, an alliance with the Japanese partner should be considered to develop a team of managers with the necessary abilities and understanding to implement the transnational approach.

Strategic Options and Alternatives

Essentially, the transnational strategy is the selected international strategy among the three approaches, namely global, transnational, and multi-domestic. This strategy-making approach combines components of both a globalized and a localized perspective, namely, think global, but act local (Thompson et al., 2022). When there are relatively significant demands for local responsiveness and considerable benefits to be derived from standardization, this sort of middle-ground method is required. For instance, it has already been discovered that consumers favor local items over foreign products in Japan. As a result of the global approach, my organization will be able to accommodate local preferences in a practical, semi-standardized manner that will benefit all parties (Thompson et al., 2022). For instance, the firm may abandon its traditional single-brand approach in favor of a multi-brand strategy focused on serving multiple market sectors to double its market share and revenue in Japan.

The three strategic options are alliance and joint ventures, foreign subsidiaries, and direct export. Strategic alliances, joint ventures, and other cooperation arrangements with foreign corporations are common ways for companies to access global markets (Thompson et al., 2022). A corporation can significantly benefit from a foreign partners expertise with local government rules and its knowledge of customer purchasing habits and product preferences. One motivation for implementing a collaborative approach is sharing distribution facilities and dealer networks, enhancing each partners customer access to benefit shareholders, employees, and suppliers (Thompson et al., 2022). Another advantage is the knowledge and experience gained through collaborative research, exchanging technical know-how, analyzing one anothers production practices, and knowing how to match sales and marketing tactics to local cultures and customs.

Companies that compete abroad frequently wish to have direct control over all functional elements in a foreign market. An internal startup or a greenfield enterprise is a subsidiary firm developed internally from the ground up (Thompson et al., 2022). Acquiring a local firm is the fastest, least hazardous, and most cost-effective way to overcome entrance hurdles. It allows access to local distribution channels, forging supplier ties, and establishing working relationships with government officials (Thompson et al., 2022). When a firm currently works in several countries and has expertise in creating new subsidiaries and monitoring their operations, entering a new foreign territory via a greenfield venture makes sense.

A direct export is a safe method for testing overseas markets. Using home factories as a manufacturing base for exporting items to overseas markets is a great way to get started with international sales (Thompson et al., 2022). Furthermore, the benefits for stakeholders and suppliers include that the amount of capital required to begin exporting is frequently modest; current manufacturing capacity may be adequate to produce items for export.

Implications of Alternatives

Each international strategy alternative has implications for local and global communities. A multi-domestic approach, for example, offers local managers decision-making autonomy and enables them to handle unique market demands and adapt quickly to local changes. It also enables local employment and adheres to local tax systems. As opposed to a multidomestic strategy, a global strategy adopts a standardized, internationally integrated approach to producing, packaging, marketing, and distributing the companys products and services everywhere.

Companies that use a global strategy offer the same products under the same brand names in all countries, use many of the same distribution channels, and compete based on the same skills and marketing tactics. Achieving the efficiency potential of a global strategy necessitates sharing resources and best practices, integrating value chain operations, and transferring skills from one place to another as they are created (Thompson et al., 2022). Making products aligned with local tastes increases their attractiveness to local purchasers. Nevertheless, because of the diversity of designs and components, shorter production runs, and increased inventory handling and logistics complexity, customizing a companys products nation by country may increase manufacturing, exploitation of the natural environment, and distribution costs.

On the other hand, greater standardization of a global companys product offering might result in scale savings and learning-curve effects, lowering per-unit manufacturing costs and adding to low-cost advantage. When employing a transnational or global approach, it is vital to consider that governments may impose measures that make putting facilities within a countrys boundaries less appealing from a commercial standpoint (Thompson et al., 2022). For instance, the nature of a companys operations may make compliance with a countrys environmental legislation extremely costly.

Proposed Strategy or Recommendations

Essentially, as a firm CEO, I prioritize Japan over Venezuela. Japan is one of the most successful markets for pet product firms, but Venezuela is an extremely hard environment for international business because of its economic state and political instability. Even though the U.S. has imposed sanctions in response to Venezuelan government activities, the sanctions do not prevent U.S. persons from shipping goods to Venezuela. As a result, my company might try to penetrate the market by straight exporting and pricing items low. It should be noted that pet food should be exported to Venezuela rather than pet hygiene, care, and amusement supplies. The best strategy suited is transnational because it adheres to a think-global, act-local approach. Nonetheless, Venezuela is not the ideal place for expanding business; therefore, Japan should receive the most attention.

I also recommend a transnational strategy because it balances global and local perspectives. When competing in nations like Japan, where local demands are substantially distinct, a transnational approach outperforms a global strategy. As an entry mode, I advise alliance and joint ventures. One of the difficulties in entering the Japanese market was discovered to be that official regulations favor domestically produced goods while opposing overseas ones (International Trade Administration, 2022). Furthermore, cross-holding and commercial interest connectedness among Japanese enterprises disadvantage competitors from outside Japan.

Alliances can also be used to assess the worth and sustainability of a cooperative agreement with a foreign partner before making a more permanent commitment. Cross-border allies can focus their competitive energy more on common rivals and less on one another; working together may help them close the gap in leading enterprises (Thompson et al., 2022). Finally, alliances can be particularly effective for reaching a consensus on critical technological standards. A local partner in Japan will assist the company in adapting to local preferences and increasing customer loyalty.

Actions Needed

Regarding operations, the transnational approach delivers the benefits of local responsiveness and global integration, the transfer and sharing of resources and talents across borders, and the benefits of flexible coordination. Furthermore, a transnational strategy usually entails centralizing specific critical tasks while decentralizing others (Day Trading, 2022). For instance, a business may centralize its R&D activity in one country while keeping manufacturing facilities in numerous other countries. This setup is intended to allow the business to benefit from the unique advantages of each location (Day Trading, 2022). The company might obtain economies of scale and scope by centralizing some crucial tasks and sharing resources across borders, which would not be feasible if it operated independently in each market.

The company may better guarantee that products satisfy high standards before they are distributed to the market by centralizing critical operations such as R&D. Japan was identified as the primary target market, with purchasers preferring high-quality pet items. Furthermore, a transnational strategy helps in swiftly adjusting operations to capitalize on new possibilities or respond to emerging threats. When a firm operates in numerous countries, it must be aware that culture may impact everything from business procedures to client preferences (Day Trading, 2022). A company needs to consider cultural variations to avoid misunderstandings and conflict. Thus, the best solution is to formulate an alliance in Japan to overcome cultural difficulties.

The transnational approach improves the technological area by sharing resources and capabilities across borders. The strategy also enhances marketing by better understanding local needs and preferences (Thompson et al., 2022). A successful multinational strategy requires numerous phases (Day Trading, 2022). First, a thorough examination of the worldwide marketplace is necessary to identify potential growth markets. According to the findings, Japan should be prioritized over Venezuela as a target market. The second phase is to design a structure allowing the organization to function efficiently in several countries. The alliance should be formed with the Japanese partner to develop a team of managers with the requisite skills and knowledge to implement the transnational strategy. Finally, it is critical to track the companys progress and make adjustments as necessary.

References

Bureau of Western Hemisphere Affairs. (2022). U.S. relations With Venezuela. U.S. Department of State. Web.

Day Trading. (2022). What is transnational strategy? Day Trading. Web.

Diep, C. (2022). Pet industry in Japan  statistics and facts. Statista. Web.

Fortune Business Insights. (2021). Pet care market size, share & COVID-19 impact analysis, by product type (pet food products, veterinary care, and others), pet type (dog, cat, and others, distribution channel (online and offline), and regional forecast, 2021-2028. Fortune Business Insights. Web.

Franco, I. (2019). Venezuelas crisis is worsening pets nutrition. Pet Food Industry. Web.

Grand View Research. (n.d.). Pet food market size, share & trends analysis report by type (dry food, wet food, snacks/treats), by animal (dog, cat, others), by region, and segment forecasts, 2022  2030. Grand View Research. Web.

International Trade Administration. (2022). Japan  country commercial guide. International Trade Administration. Web.

Japan and United Stated. (n.d.). Hofstede Insights. Web.

Nation Master. (n. d.). Labor Stats: Compare key data on Japan & United States. Web.

Research and Markets. (2022,). Global pet care market (2022 to 2030)  size, share & trends analysis report. GlobeNewswire. Web.

Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland III, A. J. (2022). Crafting and executing strategy. The quest for competitive advantage (23rd Ed.). McGraw Hill LLC.

Top 10 challenges of doing business in Venezuela. (n.d.). TMF Group. Web.

Tyler, J. (2021). Japans booming pet market is an opportunity for US exporters. Pet Food Processing. Web.

U.S. Department of the Treasure. (2019). Venezuela sanctions. U.S. Department of the Treasure. Web.

Venezuela and United States. (n.d.). Hofstede Insights. Web.

Wageindicator. (2022). Minimum wage revised in Venezuela  March 21, 2022. Wageindicator. Web.

Study Background

The overall objective of the proposed study is to explore the challenges SMEs face concerning supply chains and other aspects related to the UAEs sustainable development plan. Due to the governments long-term vision, UAE legislation has been changed; the new regulations will affect various businesses. The study aims to learn more and evaluate how the UAE is implementing its 2021 sustainable development strategy and what plans exist to achieve the UN 2030 goals. The study will be illustrated by the example of an office furniture company operating in the UAE market for quite some time.

The study focuses on the concrete company to illustrate the challenges and opportunities. Bene GMBH was chosen as an example, the organization has been operating in the UAE market for more than twenty years, and is actively evaluating the necessary upgrades, taking into account new sustainability criteria. The business model of the Bene GMBH organization can be considered successful and typical for small and medium-sized businesses involved in the production of office furniture. The study concerns the new UAE sustainability legislation and analyzes the supply chain challenges faced by SMEs in the office furniture sector in order to meet the UAE sustainability criteria.

The Aim of the Study

The study aims to investigate the impact of the UAEs sustainable development program on the functioning of a furniture company and the difficulties and restrictions that the furniture business faces under the new conditions. The theoretical study should result in a sustainable development model for the furniture sector based on an efficient supply chain. The proposed study makes a significant contribution to understanding the difficulties of small and medium-sized businesses in the UAE and can offer practical development solutions.

The Research Objectives

1. Exploring strategies for SMEs to overcome their challenges in complying with the new UAE sustainable development rules set out in the 2021-2022 Agenda.
2. Detailing the challenges a furniture manufacturing organization faces in terms of meeting the sustainability and purchasing requirements of the UAE.
3. Studying the difficulties and limitations small and medium-sized businesses face when working in a new environment.
4. Investigating the features and difficulties in supply chains, the effective operation of which directly affects the organizations activities.
5. Developing a sustainable model for small and medium-sized enterprises in the office furniture industry, focusing on their activities and practices of a closed supply chain, using the example of Bene GMBH.

Research Question: What challenges do the office furniture SMEs face under the UAE Governments commitment to sustainable development?

Literature Review

Studies regarding the difficulties of SMEs in the UAE exist; however, they are not numerous. The dissertation Evaluating Sustainable Supply Chain Practices is used to study sustainability on the example of companies producing office furniture (Massoud, 2018). The article examines the impact of the initiative of the UAE government on sustainable development. The study An Integrated Framework for the Assessment of Environmental Sustainability in Wood Supply Chains is used to understand supply chains in the furniture industry (Dalalah et al., 2022). The study Digitization in Wood Supply is also used in this paper to understand supply chain management issues in the wood industry (Muller, Jaeger, and Hanewinkel, 2019). At the moment, there are significant barriers affecting small and medium-sized businesses in the field of sustainable wood supply.

It is necessary to refer to the methods developed for the collection and analysis of statistical data. Research Methods for Business Students and Management and Business Research are used to organize competent work (Lewis, Saunders, and Thornhill, 2019; Thorpe et al., 2021). Benes official website introduces the companys history, mission, and goals (Bene, 2022). The article Digital Media Impact on SMEs Performance in the UAE helps analyze the features of modern business in the UAE (Nuseir, 2018). The Sustainable Development and Social Responsibility report is used to understand the strategies used in the past to achieve sustainable development (Al-Masri and Yousef, 2020). The official website of the UAE Ministry of Economy contributes to understanding the proposed sustainability initiatives (Ministry of Economy UAE, 2020). The book Global Logistics and Supply Chain Management helps identify the challenges that small and medium businesses can face in organizing supply chains (Lalwani et al., 2020). These sources significantly contribute to the topic, but this study intends to expand and deepen previous research.

Methodology

The primary method that the research will rely on to understand opinions about the complexities of small and medium-sized businesses is quantitative. The survey will be used as the primary form of quantitative research. The survey will systematically collect information from respondents for the further analysis. The study will consist of several stages: sampling, development of questions, a compilation of a questionnaire, contacting respondents, data collection, and analysis.

Based on a well-designed sample, the survey method turns out to be very economical and fast. Conducting a survey involving sufficient qualified questionnaires and interviewers allows the researcher to interview large populations of people in the shortest possible time. Modern possibilities of standardization of questions of the questionnaire allow receiving the unified description of the set of individual statements of people, allowing to use the computer, equipment, and methods of the mathematical analysis.

For an accurate analysis, it is necessary to interview representatives and employees of Bene in the UAE. The research needs to reach out to at least 50 people to understand the big picture, as well as to calculate the percentage easily. Confidence in the participation of these people in the research is necessary to convince the respondents that the study is for the benefit of small and medium-sized businesses in the UAE.

To organize a survey, it is required to ensure the anonymity and confidentiality of personal data. Respondents will be asked to sign an informed consent stating that the data obtained will be used anonymously and solely for scientific purposes. Informed consent assumes that the potential respondent will be aware of the subject of the survey and the purpose of the survey. This is necessary so that, when answering the question, the respondent can assess the possible unpleasant consequences. It is assumed that if people are asked to say something about themselves, they are able to adequately respond only when they realize what this can lead to. The criteria by which obtaining informed consent are assessed are based on an analysis of the risk of harm to the respondent if they provide the required information or participate in the study. The concept of risk becomes crucial when discussing procedures to establish informed consent.

Sampling Method

The sampling method for the purposes of this research would be based on the probability technique. Namely, target sampling would be used to select the population based on the purposes of the research and qualifications in the form of experience working in the supply chain. This way, it is possible to ensure that the data collected would be randomized and pertain to the target group of people with experience in the supply chain. Moreover, the participants would be selected from management and procurement fields to diversify the sample.

It was decided that the questionnaire method to obtain representative opinions would be the most suitable for the research. The cost of conducting a questionnaire, the flexibility of time, and data accuracy suggest that the research would incorporate the most valuable data via questionnaire. This data collection method allows quick access to necessary data, and the anonymity behind it is suitable for insurance of data accuracy. Since the participants would be selected from various branches of the supply chain, it is possible to collect valuable and diverse opinions on the research questions. Although the research is limited to quantitative studies, the questions would be close-ended in characteristics. This methodology allows for data collection in the shortest time and easy analysis of the responses via statistical distribution of the results.

To gather representative opinions, 50 questionnaires are to be distributed to interview employees of the organization and obtain challenges that they encounter on a daily basis. It is supposed to survey both ordinary employees and top management, mainly involved in the supply chain policy. The chosen method suggests anonymity; it seems more appropriate for expressing opinions. It is expected that such a quantitative method will give a clearer result, since employees will be more honest. To obtain permission to conduct a study, it is proposed to inform the management of the organization about the present purpose of the study. Helping to overcome difficulties is the main advantage from which the organization will gain a competitive advantage. When publishing the research, it is suggested not to advertise the organizations name to ensure complete anonymity. Nevertheless, an acknowledgement of such sampling size limitations should be made since the participants would be selected from a single organization. The findings may not be applicable for generalizations with regards to other corporations due to the difference in corporate policies and organizational management.

The provision of anonymity and the proposed benefit to the organization is expected to persuade top management to participate in the study. The company is having difficulty under the new lawing policies and should not refuse help. In addition, participation in a reasonably large study should benefit the companys reputation. For complete security, a quantitative research method is suitable since the respondents will feel more comfortable than during a face-to-face dialogue. According to Central Limit Theorem, 30 participants is the minimum limit for the sample size to be appropriate since regardless of population distribution sample means approaches a normal distribution as the sample size increases. Therefore, a survey of 50 employees is optimal both for obtaining a representative opinion and organizing time and resources. A more extensive study could be complex for the company, and a smaller sample would not provide the necessary views.

The Subject Areas

One of the main areas that the study will cover is the ecological state. To organize workplaces, employers must ensure the environmental condition of office space. Indoor air is polluted by building and insulation materials. Asbestos and formaldehyde are the main toxic compounds that negatively affect the condition of people in such environment. The need to comply with environmental regulations has led to the development of standards and certification schemes. Painting, flooring and carpeting, materials from which furniture is made fall under the requirements for environmental friendliness. Office furniture companies have met these environmental requirements by developing and selling fewer harmful products. In addition to traditional compliance with environmental regulations, office furniture manufacturers use the environmental performance of products as a competitive advantage. As a result, todays environmental performance refers to the entire value chain in which a product is created, manufactured, transported, used, and disposed of, not just the finished product. Taking into account environmental features in the furniture industry is one of the leading studied indicators.

Management and leadership are other areas to which the research relates. Supply chain management is essential to understanding the challenges businesses face in the UAE. Leadership is considered in relation to business strategies in order to analyze how new regulatory strategies affect business. The development of further solutions to resolve the difficulties indicated by the research is also the subject of management, which the study addresses.

Foreseen Limitations

The studys limitations are related to the theoretical and practical parts of the work. Theoretical studies do not provide a complete picture of the situation of small and medium-sized businesses in the UAE. Information about the Bene company was also not the subject of a detailed study, and in the course of the work, one will have to rely only on official information and the opinion of the respondents representing the company.

The limitations in the practical part are related to the chosen method of questioning as the main one for obtaining opinions. The use of questionnaires does not allow obtaining in-depth information about the opinions, motives, and values of the respondents, which generally reduces the reliability and quality of the information received. When questioning, the quality of the information received can be significantly affected by the respondents disinterest in the questionnaire. Sometimes, there is no direct incentive to answer the questionnaire in the form of a material reward. When questioning, there is no possibility of observing the reactions of respondents during the survey, which does not allow to influence them in a certain way and does not ensure the complete completion of the entire questionnaire. In addition, respondents may opt out of the survey for reasons of non-disclosure of company practices.

Research Timeline

An extensive survey requires a significant amount of time. In general, it is planned to spend no more than a month on the study. First, developing questions and finding respondents who agree to the survey is a time-consuming task. The most time-consuming part of the study is the search for contacts of respondents and compliance with the formal side, such as obtaining informed consent. The development of questionnaire questions is also a part that requires detailed study and, accordingly, time. It is necessary to think over clear language that meets the interests of the study. Waiting for respondents answers should not take much time since the questionnaire is planned not to be too extensive and with clearly defined questions so as not to take up the respondents time. Analysis of the results is also time-consuming; however, it is planned to spend no more than a week on this stage of the study.

Reference List

Al-Masri, A.N. and Yousef, A.A. (eds.) (2020) Sustainable development and social responsibilityVolume 2: Proceedings of the 2nd American University in the Emirates International Research Conference. Berlin: Springer International Publishing.

Bene (2022) About Bene. Web.

Dalalah, D. et al. (2022) An integrated framework for the assessment of environmental sustainability in wood supply chains, Environmental Technology & Innovation, 27(1), pp.1-9. Web.

Lalwani, C., Calatayud, A., and Mangan, J. (2020) Global logistics and supply chain management. London: Wiley.

Lewis, P., Saunders, M., and Thornhill, A. (2019) Research methods for business students. New York: Pearson.

Massoud, N.M.S.M. (2018) Evaluating Sustainable Supply Chain Practices in Office Furniture SMEs and Assessing Strategies to Develop Sustainable Operations in Line with UAE Regulations (Doctoral dissertation, Cardiff Metropolitan University).

Ministry of Economy UAE. (2020) Sustainable Development Goals. Web.

Muller, F., Jaeger, D. and Hanewinkel, M. (2019) Digitization in wood supplyA review on how Industry 4.0 will change the forest value chain, Computers and Electronics in Agriculture, 162(1), pp.206-218. Web.

Nuseir, M.T. (2018) Digital media impact on SMEs performance in the UAE, Academy of Entrepreneurship Journal, 24(2), pp.1-13. Web.

Thorpe, R., Valizade, D., Jaspersen, L. J., Easterby-Smith, M. (2021) Management and business research. London: SAGE Publications.