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To acquire and properly utilize the following concepts and those related to global operations,
supply chain, logistics, etc.

Logistics = Supply + Materials management + Distribution
Logistics is the . . . process of planning, implementing, and controlling the efficient, effective flow and storage of
goods, services, and related information from point of origin to point of consumption for the purpose of conforming
to customer requirements.

Logistics management tries to have the right product, in the right quantity, at the right place, at the
right time, with the right cost. Logistics management must balance 2 basic targets:
Quality of Service
Low Cost

The supply chain encompasses all activities associated with the flow and transformation of goods from the raw
materials stage to the end user
suppliers manufacturers wholesalers/distributers retailers customers

2. To associate global historical events to key drivers in global operations from different perspectives.

Floods in Thailand causes the shortage of components for electronics, vehicles, and other commercial
terror attacks in India shut down many call centres in the US and Europe for several days two years ago
price of oil, which affects us all in daily travel, home comfort (home energy), food production and delivery,
consumable production and delivery, etc. As a business, it affects us in similar ways; affecting labour, overall
production or operations, utilities (power, heat and air, brick and mortar, lights), equipment access and
utilisation, transportation (receiving and shipping), taxes, supply chain (material access and others),
production timing and much more.

3. To develop criteria for conceptualization and evaluation of different global operations
reevaluating the supply chain strategy may have been kindled by a specific development, such as new competitors,
a new business strategy or competitive model, changes in the business environment or in the structure of the
supply chain among others.

Conceptualization is the process of development and clarification of concepts.

4. To associate success and failure cases of global operations to political, social, economical and technological

a. Social factors - These factors are related to changes in social structures. These factors provide insights into behaviour,
tastes, and lifestyles patterns of a population. Buying patterns are greatly influenced by the changes in the structure of
the population, and in consumer lifestyles. Age, gender, etc all determine the buying patterns and understanding of such
changes is critical for developing strategies which are in line with the market situations. In a global environment it is
important that business strategies are designed keeping in mind the social and cultural differences that vary from
country to country. Consumer religion, language, lifestyle patterns are all important information for successful business
b. Legal factors - These factors that influence business strategies are related to changes in government laws and
regulations. For a successful business operation it is important that the businesses consider the legal issues involved in a
particular situation and should have the capability to anticipate ways in which changes in laws will affect the way they
must behave. Laws keep changing over a period of time. From the point of view of business it is important that they are
aware of these changes in the areas of consumer protection legislation, environmental legislation, health & safety and
employment law, etc.

c. Economic factors - These factors involve changes in the global economy. A rise in living standards would ultimately
imply an increase in demand for products thereby, providing greater opportunities for businesses to make profits. An
economy witnesses fluctuations in economic activities. This would imply that in case of a rise in economic activity the
demand of the product will increase and hence the price will increase. In case of reduction in demand the prices will go
down. Business strategies should be developed keeping in mind these fluctuations. Other economic changes that affect
business include changes in the interest rate, wage rates, and the rate of inflation. Incase of low interest rates and
increase in demand Businesses will be encouraged to expand and take risks. Therefore, business strategies should have
room for such fluctuations.
d. Political factors - This refers to the changes in government and government policies. Political factors greatly influence
the operation of business. This has gained significant importance off late. For example: companies operating in the
European Union have to adopt directives and regulations created by the EU. The political arena has a huge influence
upon the regulation of businesses, and the spending power of consumers and other businesses. Business must consider
the stability of the political environment, governments policy on the economy etc
e. Technological factors - These factors greatly influence business strategies as they provide opportunities for
businesses to adopt new innovations, and inventions. This helps the business to reduce costs and develop new products.
With the advent of modern communication technologies, technological factors have gained great impetus in the
business arena. . Huge volumes of information can be securely shared by means of databases thereby enabling vast cost
reductions, and improvements in service. Organisations need to consider the latest relevant technological
advancements for their business and to stay competitive. Technology helps business to gain competitive advantage, and
is a major driver of globalization. While designing the business strategies firms must consider if use of technology will
allow the firm to manufacture products and services at a lower cost. Firms can select new modes of distributions with
the help of technology. It has become easier for companies to communicate with their customer in any part of the

5. To envision global trends

In our new Global Trends Report for 2013, we highlight 10 trends that business leaders need to focus on today. These
1.Social everything: New generations and their digital world stepping forward
Social technologies are now a central part of everyday life and work. The social generations are reshaping companies
from the inside, helping them to build broader, more agile networks to create and deliver value to customers. Mobility
and connectedness will be at the heart of the future business environment: communications and marketing are moving
from a focus on one-to-one relationships, to many-to-many.
2.Redefining value: The consumer is winning the fight to own the new consumer
The notion of value is being redefined for the 21
century. Consumers have choice. They want personalization, and to
participate in value creation, shifting the mindset to made with me. Value will also be about shared with me as the
ownerless economy expands. This will be driven particularly by younger generations who value experiences they can
share and that also deliver benefits to society - over possessions.
3.Distributed everything: Mobility in production and consumption
Mobility is entering a new stage. Not only does consumption occur anywhere, anytime, but the tools and resources to
create and capture value are more broadly distributed too. Work is becoming increasingly distributed. Small-scale
manufacturing, including 3D printing, will reshape production. Renewable technologies are distributing energy
production, while mass teaching platforms are revolutionizing education. Ask what cant be distributed, not what can.
4.The next industrial revolution: Robots and smart machines reshaping work
Smart machines and robots will redefine society. Robots are now being deployed as receptionists, banking assistants and
even prison guards, while technology allows amateurs to do what professionals once did. The upside: addressing issues
such as caring for ageing populations. The downside: huge job losses. Yet the next wave of smart machines will also
create new kinds of jobs. The challenge will be to ensure a workforce that is ready and skilled for them.
5.The new space race: Pushing the frontiers of technology once again?
Scientific advances from national space programs have had a significant impact on how we live and work, from advanced
materials to global telecommunications. Now, commercial space travel and exploration is a reality, even as a new space
race hots up, particularly between the US, China and Europe. New advances will surely result, as will questions over the
ownership of space assets, and whether advances will be shared for public benefit.
6.Geopolitical wars: The fight to control the future
The BRICS and Beyond (other rapidly growing economies) will be where the fight to control future economic growth and
social development will take place. Its a multipolar market landscape, based on dramatically different economic, social
and political systems. Politicians, along with companies, are still trying to find and control their place in the new world
order, even as trust in governments falls, nationalism rises, and power shifts towards the people. The potential for
radical political shifts at home and between nations is rising.
7.Resource wars escalating: From a world of abundance to shortage
As the worlds population moves towards 9 billion by 2050, resources are under pressure, exacerbated by climate
change. By 2030 we will demand twice as many resources as the planet can supply risking social unrest and conflicts as
people and nations compete for ever scarcer resources. Scarcity is already driving resource price volatility and cross-
border investments. New technologies and rethinking consumption will be critical in future with businesses rather
than governments likely to lead the way.
8.Business stepping up: From profit to purpose
Many businesses are stepping up to a new role, often with partners, to tackle social and economic challenges.
Corporations are seeking to build legitimacy and the license to operate in the eyes of demanding consumers,
employees and stakeholders who care about the impact and motivations of companies with whom they associate. But
its also good business as companies realize mutual benefits with society. Look for more businesses redefining their
corporate purpose in this way.
9.Information is power: The security challenge
Cyberspace is the new frontline for security. Knowledge and information is a source of competitive advantage for
organizations, nations and individuals. But its a growing challenge to retain control as mobility and the democratization
of everything (commerce, politics and societies) increases along with cybercrime and cyber war. Look for a rising tide
of litigation, policies and regulation. Digital freedom or a big brother society?
10.Who needs banks anyway? Reshaping the financial system
The financial system is broken. Regulators want change, businesses want new means of financing and consumers want
alternatives. The banks of the future will include state-owned entities, and firms that simply dont use cash: think
bartering and community currencies. Digital wallets and mobile banking are opening the door for telcos and software
players, while trust is the entry point for retailers and crowdfunding communities. In an increasingly crowded and
cashless financial system, banks may no longer be key players.