Strategic Alliances in Supply Chain Management

Strategic Alliances in Supply Chain Management Strategic alliance or partnership is solely depended on trust, faith relationship between simultaneous stages in Supply Chain. This increases ability and dependability of various stages involved in the supply chain. As strategic alliances can be between two or more organisations so each stage should be managed by welfare of the others and should not change or use that stages for own advantage without consideration of the organisation involved. This alliance is kept formal in relationship between two or more organisation to achieve some beneficial goals through business by supply chain. Here organisations also work on their desired needs. Some of the Strategic alliance resources are: Products Distribution channels Manufacturing capability Project funding Capital equipment Knowledge Expertise or intellectual property This alliance is actually a collaboration of firms to work together to form a greater effect than before. There are some reasons which can improve the performance which are : Decision making is done by the consideration of other party. Easy coordination between the parties by their managers with the trust. This result in better operational implementation and scheme valuation. It will lead to redundancy due increase in supply chain productivity. This ensures proper sharing of sales and production information, hence helping in coordinate production and distribution decisions. Above diagram shows the model of forming strategic alliances. Here operating strategy is divided into three structures: Industrial Organizational Government Building strategic alliance and its trust Building these types of alliances is totally dependent on Managers of the organization. Mostly this is done by sharing clean information trusted by every results matching with supply and demand throughout the supply chain processes and lower cost. Here it shows that better relationship helps to lower the cost between the supply chain stages. Example: As far as trust over here is concerned a supplier can avoid forecasting about information received for the retailer. Similarly the retailer can lessen the receiving effort by decreasing counting and inspections on the trust of the suppliers quality and delivery. This ensures better coordination between supplier and retailer. Wal-Mart and PG have been trying to build a strategic alliance that will help for better coordination and actions can be mutually beneficial. A typical strategic alliance formation consists of some steps which are: Strategy Development: development involves feasibility of alliance, objectives and goals, decisions, focus on critical issues, technology and people with their challenges and resources. Partner Assessment: In this assessment partners strength, potential, developing managing styles, preparing criteria for partner selection and understanding their motives for joining alliances. Contract Negotiation: It is the development of realistic objectives among the group and forming the high calibre or developing synergy. Consideration on security of information, termination clauses, and penalties for poor performance is formulated. Alliance Operation: it is linking of budgets and resources to fulfil the strategic priorities, measuring the performance etc. Alliance Termination: It is the winding down of partnership due to failure or not meeting the clauses decided before. Advantages of Strategic Alliance Each partner can concentrate on different stages of the supply Developing competences and learning form the partners Suitability and protection of resources is maintained Developing low cost models hence financial benefit. Types of strategic alliances Joint venture: In this type of alliance two or more firms create legally independent company to develop competitive advantage Equity Strategic Alliance: There is sharing of different percentages of the company. Non-equity Strategic Alliance: It is alliance on a contractual- relationship to share the unique resources. Global Strategic Alliances: It is formed between a company and foreign company. Achieving Strategic Alliance by any Organization: It is agreed that the cooperation and the trust in supply chain are quite important and develops the value but it very hard to maintain, sustain and develop till the last point. Therefore two views have been analysed to categorize into any supply chain relationship. Those views are as follows: Deterrence-based view: In this view a variety of formal contracts are formed amongst to ensure cooperation Process-based view: with this view the development of trust and cooperation is built over a long time with the series of interactions between the parties. In practical situation the contract established between parties and design of such contract is impossible to make where all contingency is accounted in future by all parties so the only way out here is to trust each other and have a long relationship relying on developed contract. Example: If there is a situation where supplier sign the initial contract containing the contingencies with the manufacturers and then those manufacturers turns out of not referring that contract again. So here hope remains to resolve such contingencies with the negotiation. Designing a relationship with Cooperation and Trust Main steps for this are: Assessing the value of the relationship Identifying operational roles and decision rights for each party Creating effective contracts Designing effective conflict resolution mechanism Assessing the value of the relationship First step always becomes the designing of mutual benefit that relationship provides. In most supply chain, member of partnership brings distinct skills needed to tp supply customer order. Example: A manufacturer produces the product which transported to retailer by passing it through various stages and retailer makes it appear to customer. Here next step is to identify the criteria used for evaluating the relationship as well as the contribution of the member. These criterions are to increase the total profits. Stages in supply chain alliances help managers to carry out productive decisions and it makes easy for producing correct decision by managerial level. Therefore leading in productivity of flow in the supply chains. Example: When suppliers work hard to reduce replenishment lead times, the supply chain benefits because of reduced safety inventories at manufactures and retailers. Suppliers are unlikely to put in the effort if the manufacturers and retailers are not willing to share the increase in profit with them. Thus, supply chain relationship is likely to be sustainable only if profits are increased with proper sharing In this step clarification of contribution of each member should be done accurate. For this flexible mechanisms should be designed to monitor the relationship periodically. Example: Chrysler negotiates a certain level of improvement per year with supplier. Identifying operational roles and decision rights for each party In identifying such things managers responsible of various members should know the interdependence between the members. A source of any conflict may ruin the level of trust and may also the level of dependency. There can also be the structure of sequential interdependence where dependency precedes on members. While in reciprocal interdependencies partners come together and exchange information and inputs in both direction. Example: Wal-Mart and PG are attempting to create reciprocal interdependence through collaborative forecasting and replenishment teams. Major example of operational roles is as follows: The relationship among Dell, Sony, and Airborne. Here dell takes order for computers it assembles and monitors that Sony Manufactures. Airborne picks up computers from Dell warehouse in Texas and monitors from the Sony warehouse in Mexico. It then Merges two and sends a combined order to customer. Creating effective contracts Handling and encouraging towards sudden contingencies arouse within alliance is difficult for managers without contracts. So contracts are most effective for governance when complete information is available and all future contingencies are can be accounted for. Contracts play only partial role over long time in maintaining effective partnership in supply chain. Example: Caterpillar and its Dealerships can terminate agreements without cause with 90 days notice. Designing effective conflict resolution mechanism As conflicts are bound to arise in relationships, unsatisfactory resolutions cause the partnership to worsen, whereas satisfactory resolutions strengthen the alliance. So a proper conflict mechanism should give the parties an opportunity to communicate and work through their differences, in the process building greater trust. It is important to be sensitive to the context of the partnership while designing the conflict-resolution mechanisms. Managing Supply Chain Relationship for Cooperation and Trust Effective management of relationship develops cooperation and trust while poorly managed relationship leads to loss in supply chain profits. Good alliance evolves and matures through following stages: Organisational SWOT analysis Core competence identification and focus Outsourcing and partnership need establishment Intent and expectation statement Requirement clarification Partner search and selection Partnership contract and negotiation Contract formulation Operationalization of emerging joint endeavour Monitoring and Performance evaluation Staffing and people issues resolution Continual relationship management Example: Relationship between Marks Spencer and manufacturer of kitchen product provides an excellent example of fair sharing of benefits. After sometime of the products introduction, the manufacturer realized that costs had been miscalculated and exceeded the price at which the product was being sold to Marks Spencer. Meanwhile, given its low retail price, customers found the product an outstanding value and made it a big hit. Strategic Alliances help to Supply Chain of the business There are many benefits of Strategic alliance but managing it is been a difficult task and with probability of forthcoming conflicts in such alliances and businesses. Finally significant part in such alliances is that it helps a lot in supply chain business. Which are discussed as follows? Collaboration For developing an effective collaborative relationship with the supply chain partner the one thing that will help the most to improve communication is ability to understand the value of the supply chain that partner needs to receive from the relationship. Example: Some procurement department might believe that its supply partner should cut their price so low that they no longer make a profit. This is simply crazy. If an effort to understand the total value of supply partner needs and help them to receive that total value package, they will perceive you as a great partner and communication will become easier. Information Sharing Difficult challenge to overcome in collaborating with suppliers and customers comes when sharing of information is to be made clearly. Where the challenge of integrating inter-company processes is to be made for execution. To improve resource utilisation among all supply-chain partners and to increase end-consumer satisfaction across the various enterprises is a new openness that will be guaranteed for all the cooperating players in alliance. The main challenge is to overcome divulge of profit secrets. Supply Chain Improvements Supply chain improvement areas available for strategic alliance relationships: Management of supply channel conflict On-time product delivery Prompt response to complaints Greater consistency in parts, supplies, semi-assembled, and completed products Detailed agreement as to handling of product problems and customer complaints Improved supply chain productivity Specific (quarterly, yearly, etc.) volume commitments Key contacts that are dedicated to your account Improved supplier loyalty Prompt response to quote requests and price problems Confidentiality of shared business strategy Example: Just-in-time inventory purchasing and supplying as exemplified by the famous relationship between Wal-Mart and Procter Gamble has continued to prove successful. Home Depot and Dell Computers have also built powerful alliances with their suppliers for cost saving just-in-time inventory in similar applications Supply chain strategic alliances can help logistics teams provide value Mainly seen that cost centres, logistic departments are most crucial for customer care and good working of supply chain operation. Example: Supply chain management issues are related with aspects as logistics, distribution, and transportation in the paper industry which can be changed to facilitate promising value for customers and end users. In todays businesses the logistics and its associated activities are an integral function of most business transactions. So Logistics service providers account for the local cross-town delivery of a product to a customer or the activities required to facilitate an important global shipment between companies located on different continents.

The Linguistic Situation of South Africa :: essays research papers fc

When it comes to linguistics, South Africa is like a melting pot of languages. In total, South Africa has eleven major languages coming from both Africa and Europe. The major languages used are Afrikaans, English, Ndebele, Pedi, Sesotho, Swazi, Tsonga, Tswana, Venda, Xhosa and Zulu. In order to understand how each of these languages arrived in South Africa, we must first look at the history of people living in the country. The first identified language spoken in the South Africa was Khoisan. This language was spoken by the indigenous people of South Africa, the Khoikhio, who lived mainly in the southern coastal regions of the country. Over the years this language has slowly faded away along with the native Khoikhio people. Today there are only a few native South Africans left who can still speak Khoisan living in the western sections of the country.   Ã‚  Ã‚  Ã‚  Ã‚  Some time around the eighth century many Bantu tribes migrated south from central Africa into the northern territories of South Africa. Each of these Bantu tribes brought with them their own distinct Bantu language—nine of which still remain and are recognized today as official languages by the South African Government. These languages are used throughout the African population, which makes up three quarters of South Africa’s people. These languages include: Sesotho, Tsonga, Pedi, Tswana, Venda; and the Nguni group of Bantu languages: Xhosa, Ndebele, Swazi, and Zulu.   Ã‚  Ã‚  Ã‚  Ã‚  In the present, Zulu is the Bantu language with the largest number of speakers. In KwaZulu and Natal there are nine million people that speak this language. Falling right behind with seven million speakers is the language of Xhosa. Xhosa can be found around Transei, Ciskei, and on the Eastern Cape. The official language of Swaziland is Swazi with two million speakers. The last Nguni language is Ndebele, which is spoken by half a million people in some northeastern parts of South Africa. Between the four separate Nguni languages there are 12 different dialects. Pedi and Sesotho are both a part of the Sotho group of Bantu Languages and they share 11 different dialects. Pedi is the strongest language in the Sotho group. Pedi has four million speakers all over the country. Three million people in Qwaqwa and Orange Free State speak Sesotho. Tsonga, which has four dialects, has four million speakers living in Mozambique and Swaziland. Tswana spoken in Botswana has aroun d three million speakers. Venda, spoken mainly in Transvaal, has over half a million speakers.

Consumer Behaviour Essay

Consumers make many buying decisions every day, and the buying decision is the focal point of the marketer’s effort. Most large companies research consumer buying decisions in great detail to answer questions about what consumers buy, where they buy, how and how much they buy, when they buy, and why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys of consumer buying behavior is not so easy—the answers are often locked deep within the consumer’s mind. Often, consumers themselves don’t know exactly what influences their purchases. â€Å"The human mind doesn’t work in a linear way,† says one marketing expert. â€Å"The idea that the mind is a computer with storage compartments where brands or logos or recognizable packages are stored in clearly marked folders that can be accessed by cleverly written ads or commercials simply doesn’t exist. Instead, the mind is a whirling, swirling, jumbled mass of neurons bouncing around, colliding and continuously creating new concepts and thoughts and relationships inside every single person’s brain all over the world.† The central question for marketers is as follows: How do consumers respond to various marketing efforts the company might use? The starting point is the stimulus-response model of buyer behavior shown in Figure 5.1. This figure shows that marketing and other stimuli enter the consumer’s â€Å"black box† and produce certain responses. Marketers must figure out what is in the buyer’s black box. Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces and events in the buyer’s environment: economic, technological, political, and cultural. All these inputs enter the buyer’s black box, where they are turned into a set of buyer responses: the buyer’s brand and company relationship behavior and what he or she buys, when, where, and how often. Marketers want to understand how the stimuli are changed into responses inside the consumer’s black box, which has two parts. First, the buyer’s characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyer’s decision process itself affects his or her behavior. We look first at buyer characteristics as they affect buyer behavior and then discuss the buyer decision process. Many levels of factors affect our buying behavior—from broad cultural and social influences to motivations, beliefs, and attitudes lying deep within us. For example, why did you buy that specific cell phone? Consumer purchases are influenced strongly by cultural, social, personal, and psychological characteristics, as shown in Figure 5.2. For the most part, marketers cannot control such factors, but they must take them into account. Cultural Factors Cultural factors exert a broad and deep influence on consumer behavior. Marketers need to understand the role played by the buyer’s culture, subculture, and social class. Culture Culture is the most basic cause of a person’s wants and behavior. Human behavior is largely learned. Growing up in a society, a child learns basic values, perceptions, wants, and behaviors from his or her family and other important institutions. A child in the United States normally learns or is exposed to the following values: achievement and success, individualism, freedom, hard work, activity and involvement, efficiency and practicality, material comfort, youthfulness, and fitness and health. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country. A failure to adjust to these differences can result in ineffective marketing or embarrassing mistakes. Subculture Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to their needs. Examples of four such important subculture groups include Hispanic American, African American, Asian American, and mature consumers. Hispanic American Consumers The nation’s nearly 50 million Hispanic consumers have an annual buying power of more than $950 billion, a figure that will grow to an estimated $1.4 trillion by 2013. Hispanic consumer spending has grown at more than twice the rate of general-market spending over the past four years. Although Hispanic consumers share many characteristics and behaviors with the mainstream buying pubic, there are also distinct differences. They tend to be deeply family oriented and make shopping a family affair; children have a big say in what brands they buy. Perhaps more important, Hispanic consumers, particularly first-generation immigrants, are very brand loyal, and they favor brands and sellers who show special interest in them. African American Consumers With an annual buying power of $913 billion, estimated to reach $1.2 trillion by 2013, the nation’s 42 million African American consumers also attract much marketing attention. The U.S. black population is growing in affluence and sophistication. Although more price conscious than other segments, blacks are also strongly motivated by quality and selection. Brands are important. So is shopping. Black consumers seem to enjoy shopping more than other groups, even for something as mundane as groceries. In recent years, many companies have developed special products, appeals, and marketing programs for African American consumers. For example, P&G’s roots run deep in this market. P&G has long been the leader in African American advertising, spending nearly twice as much as the second-place spender. It has a long history of using black spokespeople in its ads, beginning in 1969 with entertainer Bill Cosby endorsing Crest. Today, you’ll see Angela Bassett promoting the benefits of Olay body lotion for black skin, Derek Jeter discussing the virtues of Gillette razors and deodorant, and Queen Latifah in commercials promoting a Cover Girl line for women of color. In addition to traditional product marketing efforts, P&G also supports a broader â€Å"My Black Is Beautiful† movement. Asian American Consumers Asian Americans are the most affluent U.S. demographic segment. They now number nearly 15 million and wield more than $500 billion in annual spending power, expected to reach $750 billion in 2013. They are the second fastest-growing population sub segment after Hispanic Americans. And like Hispanic Americans, they are a diverse group. Chinese Americans constitute the largest group, followed by Filipinos, Asian Indians, Vietnamese, Korean Americans, and Japanese Americans. Asian consumers may be the most tech-savvy segment; more than 90 percent of Asian Americans go online regularly and are most comfortable with Internet technologies such as online banking. As a group, Asian consumers shop frequently and are the most brand conscious of all the ethnic groups. They can be fiercely brand loyal. As a result, many firms are now targeting the Asian American market, companies like State Farm, McDonald’s, Verizon, Toyota, and Wal-Mart. For example, among its many other Asian American targeting efforts, McDonald’s has built a special Web site for this segment (www.myinspirasian.com), offered in both English and Asian languages. The fun and involving, community-oriented site highlights how McDonald’s is working with and serving the Asian American community. Mature Consumers As the U.S. population ages, mature consumers are becoming a very attractive market. By 2015, when all the baby boomers will be 50-plus, people ages 50 to 75 will account for 40 percent of adult consumers. By 2030, adults ages 65 and older will represent nearly 20 percent of the population. And these mature consumer segments boast the most expendable cash. The 50-plus consumer segment now accounts for nearly 50 percent of all consumer spending, more than any current or previous generation. They have 2.5 times the discretionary buying power of those ages 18 to 34. As one marketing executive puts it, they have â€Å"assets, not allowances.† Despite some financial setbacks resulting from the recent economic crisis, mature consumers remain an attractive market for companies in all industries, from pharmaceuticals, furniture, groceries, beauty products, and clothing to consumer electronics, travel and entertainment, and financial services. Social Factors A consumer’s behavior also is influenced by social factors, such as the consumer’s small groups, family, and social roles and status. Social class Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. Group Two or more people who interact to accomplish individual or mutual goals. Groups and Social Networks Many small groups influence a person’s behavior. Groups that have a direct influence and to which a person belongs are called membership groups. In contrast, reference groups serve as direct (face-to-face) or indirect points of comparison or reference in forming a person’s attitudes or behavior. People often are influenced by reference groups to which they do not belong. For example, an aspirational group is one to which the individual wishes to belong, as when a young basketball player hopes to someday emulate basketball star LeBron James and play in the National Basketball Association (NBA) Marketers try to identify the reference groups of their target markets. Reference groups expose a person to new behaviors and lifestyles, influence the person’s attitudes and selfconcept, and create pressures to conform that may affect the person’s product and brand choices. The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects.

United States Should Not Drop The Nuclear Bombs On Japan.

United States should not drop the nuclear bombs on Japan In year 1945 august 6, and 9, America dropped two nuclear weapons on the Japanese cities Hiroshima and Nagasaki respectively. Those two bombs brought severe damages to these two cities including over 200,000 innocent lives. Many people believe that Japan deserve to be bombed due to many reasons, primarily because Japan first attacked United States at Pearl Harbor. However, it is still wrong and unnecessary for United States to drop two bombs respectively on Hiroshima and Nagasaki as the two bombs not only bring destructions to Japan, but also cause further fears and chaos to the whole world. An atomic bomb is a bomb that derives its destructive power from the rapid release†¦show more content†¦Impact of the A-Bomb, Hiroshima and Nagasaki, 1945-1985). With all those damages the bombs bring to Hiroshima and Nagasaki, it is definitely unethical for United States to drop them. Japanese citizens who live in Hiroshima and Nagasaki are innocent and many of them are not even involved in the war. Those two cities have no reason to suffer over 100,000 death and the mass destruction of the infrastructure. It is true that Japan had also committed many atrocities during the war and they did cause pains to United States at Pearl Harbor. However, the mass killing brought by the bombs is also an atrocity and nothing can justify it or make it right. More importantly, bombing Japan is not absolutely necessary as there are some other options that could be taken. Many people justify the outcome of the bombing by claiming that the two bombs effectively end the war, which also helped save many lives from both sides. That is certainly true. However, it is wrong to believe that dropping two nuclear bombs is the only viable choice left to United State. There are definitely other options and it seemed like United States was not interested in them at that time. One of the option is to clarify and negotiate the Potsda m Declaration with Japan a little more. The Potsdam Declaration is a statement that calls for the surrender of all Japanese forces during the Second World War. One of its term demands anShow MoreRelatedThe Threat Of The Atomic Bomb1131 Words   |  5 Pagesmany wars the United States of America have fought in since World War I to the ruthless naval sea battle in World War II with the Japanese. There is no question about it that war is a great catastrophe, which leads to death of soldiers, destruction, butchery, but the worst kind of all the atomic war. One only has to think of the havoc this nuclear war would cause Capio mentioned in the article Airpower Journal (68). Just like when the United States Air Force dropped the Atomic bomb in Hiroshima fromRead MoreThe Manhattan Project And How Did It Affect The World? 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