Premium Essay

Procurement Domestically and Internationally

In: Business and Management

Submitted By joemgoba
Words 11273
Pages 46
PROCUREMENT DOMESTICALLY AND INTERNATIONALLY The case of companies A and B

Francesca Xiaoying Zhang

Bachelor’s thesis May 2012 Degree Programme in International Business Options of Supply Chain Management and Financial Management

2 ABSTRACT Tampereen ammattikorkeakoulu Tampere University of Applied Sciences Degree Programme in International Business Options of Supply Chain Management and Financial Management AUTHOR: Francesca Xiaoying Zhang Title of thesis: Procurement Domestically and Internationally The Case of Companies A and B Bachelor's thesis 45 pages, May 2012 This thesis aims to compare domestic and international procurement operations & business systems in company A and B. Company A is a multinational overseas company with domestic procurement and sales in China. Company B is a Finnish company with international procurement from Far East and sales in Nordic countries. Procurement is directly linked to business or organizations’ ability to deliver value in the market place. It is increasingly recognized by managers as a key business driver. Procurement decisions fundamentally affect business success because costs on purchased parts and services represent more than half of the sales revenues of most companies today. Companies having contacts of globally distributed supply base, are not necessarily limited to domestic purchase, moreover they can purchase internationally. Conducting and managing international procurement is more complex than undertaking domestic procurement. Some key aspects that differentiate international procurement from domestic procurement are that international procurement deals with a wider range of issues: trade between different nationalities, less mobility of factors of production, customer heterogeneity across markets and use of different currencies, governmental economic policy and political issues, culture, distance,

Similar Documents

Premium Essay

Strategic Planning

...Stock Exchange Malaysia in year 1992. Since then, this fast expanding company has grown to be one of the largest players in the biscuit industry in the country and produce a fine, wide range of superior quality biscuits. It has been successfully marketed domestically and internationally through Hwa Tai’s own vast and comprehensive distribution network. Our biscuits are marketed under the brand name or trademark of “Hwa Tai” and “Luxury”. We take pride in our excellent innovation and high quality products which have firmly entrenched us not in Malaysia but also in over 50 countries around the world. We are keenly involved in the integrated supply chain of our products, from manufacture to sales to distribution network, we are also carrying products or brands by other principals for the Malaysian market. 1.1 Analyse vision We aim to be a leading biscuits and confectionery manufacturer in the region known for its product quality and variety. 1.2 Analyse mission Hwa Tai is committed in producing the best quality products for our customers all over the world and creating business opportunities for our partners. We have more than 50 years of manufacturing experience and the ability to manage our entire value chain, from procurement of raw materials to distribution of finished products. From the company’s very first beginning, we have recognized that the skilled and dedicated people who work for us are critical to our success. We expect high standards from our staff- a team totally...

Words: 426 - Pages: 2

Premium Essay

Go Fish-Marketing

...Go Fish My own observation of International Marketing is the exchange of goods and services across the World in order to equalize balance in this country. We have rules set in place to ensure the sharing of goods and services are equal and everyone is included in the cutting of the pie. International Marketing is also about making decisions. Do I stay local while exploring beyond; what am I selling; what is my strategy; do I have a target market; how do I enter the market and which market do I enter. So many questions and so little time to make the right decision I will review how government plays a role in International trading and the impact government has. There are many factors that affect the International arena like political, financial and culture. I will review how these elements can shape as well as tear down the market. I will conclude my review with strategies for entering and staying in the International ring of Go Fish. Explain the role of government in international trade, the various levels of economic integration, and the impact on international marketing. There are five major levels of economic integration; the two I will discuss are preferential trade agreements (PTA), Free trade areas (FTA), customs unions, common markets and economic and monetary unions. The more integrated the economies become, the fewer trade barriers exist and the more economic and political coordination there is between the member countries. A preferential trade agreement...

Words: 2956 - Pages: 12

Premium Essay

Heterogeneous Network Project: Research

...networks and servers. Most of today’s VPNs are encrypted, so computers, phones, and other networks that connect to them do so via encrypted tunnels. With the ability to connect securely to a remote network via the Internet. Employees can access files, applications, printers, and other resources on the office network without compromising security. The VPN help to centralize all IT resources and allows for centralized administration of resources at Data Center’s Server in the head office. Also with a few VPN’s to share servers and other networked resources among multiple offices domestically and internationally. For employees using personal or assigned mobile devices connecting to the enterprise server by a mobile VPN it will bridge the gap between wired network, on- and off-site smartphones, tablets, notebooks. The VPN can be accessed from any authorized PC, without software installation or IT procurement. Similarly, VPNs can be reached from many authorized smartphones or tablets, without IT ownership. Since the VPN is granular it can be set so that , IT dept. delivers only virtual desktop to a BYO iPad, or give partners very narrow access to a small set of URLs Here are three important VPN technologies: trusted VPNs, secure VPNs, and hybrid VPNs. It is important to note that secure VPNs and trusted VPNs are not technically related, and can co-exist in a single service package. Networks that are constructed using encryption are called secure VPNs. When the traffic is encrypted...

Words: 651 - Pages: 3

Premium Essay

Anheuser Busch Analysis

...SWOT Analysis | Strength | 1. Core competencies in marketing, distribution, production, and procurement. 2. An acknowledged leader as it is one of the biggest globally3. Outstanding image and reputation. 4. Economies of scales – cost advantage due to volume of production (90+ billion barrel).5. Advertising know-how – lots of memorable campaigns.6. Product innovativeness.7. Lower overall unit cost relative to competitors.8. Cultural diversification due to its wide international presence and partnerships.9. Excellent manufacturing facilities established worldwide.10. Strong tradition in quality and service. | Weakness | 1. Heavily leveraged. 2. Restrictive with regards to distributors. 3. Conflict among top management and union officials being a global entity is a concern | Opportunity | 1.  Expansion into new markets and segments2.  Expand product line – for new areas and to accommodate changes in taste and preference. 3. Ability to transfer skill to new business units domestically and internationally.4. Integration forwards and backward.5. Ability to grow rapidly because of expansion into new markets.6. Falling trade and ownership regulations in foreign countries. | Threats | 1. Tax regulations on the beer industry. 2. Declining segments within the domestic market. 3. Slowed industry growth rate.4. Legal issues dealing with underage drinking – retailer’s license may be revoked or suspended.5. High quality import beers with lower prices.6. Changing buyer taste and...

Words: 915 - Pages: 4

Free Essay

System Evaluation

...manufactures, distribution companies or any company that needs to ship its product to outside customers. This system goes way beyond dealing with the cost of freight shipping. I know using this system has made my company look at its transportation and freight Department different; in how it needs to leverage the system for the maximum ROI. We are still new to using this system as a whole but we are trying to help the company move products from their origin to the destination- efficiently, reliably, and of course being as cost effective as possible. We are realizing that the TMS encompasses shipping solutions for moving freight in all modes of transportation. TMS processes include transported freight inbound or outbound; whether that be domestically or internationally. We are looking to use this system for size ranges of shipping needs from parcels to bulk commodities. In the depth of the research that our company had done they had discovered that one of the main reasons for implementing TMS is to ultimately reduce freight spend. While working with the TMS, the development team is researching what ways this system actually will achieve these savings. They found that process enforcement, analytics, and optimization of shipping department. A companies realistic look at why using the TMS will be a great increase to customer service. Our company is looking forward to the reporting and analytics of using this system. I know for our logistics department they are looking forward to being able...

Words: 711 - Pages: 3

Premium Essay

Tata-Jlr Deal

....................... 3 iii. Suppliers’ bargaining power................................................................................................................................ 3 iv. The threat of Substitutes ...................................................................................................................................... 3 v. 4. Strategy adopted by Tata Motors................................................................................................................................ 4 i. Competition at Home ................................................................................................................................................... 4 ii. Making Waves Internationally .................................................................................................................................... 4 iii. M&A Strategy of Tata Motor...

Words: 2452 - Pages: 10

Premium Essay

Ecotourism

...www.uncsd2012.org RIO+20 Issues Briefs Produced by the UNCSD Secretariat and UNCTAD March 2011 No. 1 Trade and Green Economy 1. Introduction The potential trade risks of a transition to a green economy — protectionism, conditionality, subsidies — are issues of long standing and not unique to the green economy. The urgency of the global challenges which a green economy transformation is intended to address, and the scale of the actions being taken by many countries to build green economies, does however bring renewed focus to these risks. At the same time, the new greening of markets associated with a green economy may provide opportunities for many developing countries to find global markets for goods and services with low environmental impacts. This will, however, test the supply capacities of developing countries as reflected, for example, in domestic trade infrastructure. The green economy offers an opportunity to improve both global trade governance and the domestic trade environment to ensure that trade contributes positively to a green economy in the context of sustainable development and poverty eradication. 4) Unilateral policy measures: Many countries seem committed to the use of trade measures to persuade other countries to change their domestic environmental practices, despite the fact that many measures may be contrary to GATT-WTO rules (see Table 1 and discussion). 5) International environmental, climate change agreements/conventions: The outcome of negotiations...

Words: 3715 - Pages: 15

Premium Essay

Home Depot

...construction projects on different job sites. Home Depot evolved into internationally recognized specialty retailer that markets and delivers 40,000 different building materials, lawn and garden products, home improvement supplies, appliances, and more than 250,000 other products that can be especially ordered (The Home Depot U.S.A., Inc., 2003-2006). It has been noted that “The Home Depot has convenient locations throughout the United States. Stores average 105,000 square feet with approximately 23,000 additional square feet of outside garden area” (The Home Depot U.S.A., Inc., 2003-2006, Our Company, Stores and Product section). A possible solution for addressing and fulfilling the organization’s expectations is to examine policies and procedure requirements for an additional customer service. Home retail improvement products and services in the future will gain efficiencies from departments such as services that are policy written and business procedures through development of more new products demanding customizations from business partners to fit in within the company structure both in a domestic and global arena. Home Depot offers deepening commitment to develop every resource to create an effective competitive advantage and manage logistics within the supply chain. A solid foundation within the brand of home improvement establishes the expectations influence and creates effects on procurement strategies, policies...

Words: 2032 - Pages: 9

Premium Essay

Wal-Mart Strategic Audit

...States.The company needs to evaluate multiple options to determine the best strategy to deploy. The challenge is “keeping the world’s biggest retailer on its phenomenal roll and delivering the huge sales and earnings increases that investors had come to expect from Wal-Mart over the years” (Camerius& Hunger, p. 19-30, 2006). The company’s current strategic plan is tothrive in the followingareas: • Low costs, high customer service, and always low prices • Product mix • Logistics and supply-chain management • International markets • Domestic growth • Public relations I have developed multiple strategic alternativesfor the company. They are as follows: • Stability – Pause And Proceed: Pause physical growth then proceed with growth domestically and globally • Growth – Concentration: Concentrated Internet program to target domestic and foreign markets • Growth – Concentration: Horizontal Growth with International Entry for global geographical internal expansion The plan deployed must be consistent with the corporate strategy. Per Sam Walton (1918-1992), the company’s founder, “Our goal has always been in our business to be the very best and, along with that, we believe that in order to do that, you’ve got to make a good situation and put the interests of your associates first. If we really do that consistently, they in turn will cause…our business to be successful, which is what we’ve talked about and espoused and practiced” (Camerius& Hunger, p. 19-10, 2006).  Table...

Words: 8588 - Pages: 35

Premium Essay

Southwest

...Issue/Decision Despite its industry-leading position, Southwest Airlines was facing new challenges in mid-2008 which threatened its annual growth potential. Historically, Southwest’s seat availability grew at a rate of 5-10% each year; however, 2008’s projected growth was limited to 3% year-over-year. This is a direct result of strengthened competition which weakened Southwest’s competitive advantage, the onset of an economic recession, a high fixed cost structure with high operating costs—particularly fuel which consumed 31% of the total operating costs—and overall market saturation. Strategic Framework Southwest Airlines was built with a strong cost-leadership strategy, focusing on domestic, short-haul (under 500 miles), point-to-point flights (not “hub-and-spoke” network like competitors), using only one type of aircraft and offering a “no frills” approach to service. Its operating efficiencies enable high frequency flights with quick turnaround times. Like all airlines, Southwest faced challenges with the market environmental factors. The industry is notorious for its high fixed-cost structure. With 80% of operating costs fixed, there are limited cost reduction opportunities, which make it low profit-potential industry. The airline industry was faced with pressures of customer dissatisfaction with airline services, increasing costs for aircraft safety maintenance, debt servicing, increased air-traffic delays, financial pressures encouraging mergers, and increased...

Words: 1226 - Pages: 5

Premium Essay

Marketing Plan

...[Type the company name] | Personal Marketing Plan | [Type the document subtitle] | | | 7/29/2012 | I. Executive Summery The purpose of this marketing plan is to help determine what direction and actions I should take in pursuing a business career. I am offering my services to a large multinational corporation in need of a Logistician. My main long term goals are to achieve a Senior Level Logistician Manager for a earning a salary of over 100,000 dollars a year plus benefits. To achieve this goal I must analyze the internal and external marketing environment, competition, SWOT, and set goals and objectives to measure my progress. II. Situation Analysis A. The Internal Environment I am a studying in Supply Chain Management. I’m about to enter in the professional workforce focusing on companies that are in need of a professional in the Supply Chain field. Corporations are now competing in the global market for customers, suppliers, retailers, and manufacturers and are now having to get their raw materials into finished product and then to market using a vast supply chain that stretches across the globe. Review of the marketing goals and objectives My main marketing goal is to coordinate an organization’s supply chain. I will manage the entire life cycle of a product, which includes how a product is acquired, distributed, allocated, and delivered. To achieve this goal I must first, within 2 years, is to achieve an internship...

Words: 1944 - Pages: 8

Premium Essay

Qantas

...INTRODUCTION Qantas is the acronym of the Queensland and Northern Territory Air Services. Qantas is the world's second oldest airline and was founded in the Queensland outback in 1920. It is Australia’s largest domestic and international airline and is recognised as one of the world's leading long distance carriers. It has pioneered services from Australia to North America and Europe. The Qantas Group today employs approximately 32,500 people and offers services across a network spanning 182 destinations in 44 countries (including those covered by codeshare partners) in Australia, Asia and the Pacific, the Americas, Europe, the Middle East and Africa. [16] The Qantas Group’s main business lies in the transportation of passengers via two complementary airline brands – Qantas and Jetstar. The Sub-divisions of the brands are shown in the figure below: In addition to the airline brands, the Qantas Group operates Qantas Frequent Flyer and Qantas Freight. The Group has additional equity interests in airline and airline-related businesses. Qantas is also a partner with Australia Post in two jointly controlled entities: Australian air Express and Star Track Express, a national road freight business. [12] The Qantas Group’s long term vision is ‘to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.’ [13] To achieve this, the Group is focused on five key elements: * Safety is our first priority * Right aircraft, right...

Words: 4229 - Pages: 17

Free Essay

Anheuser-Busch Incorporated/Inbev: Do They Still Hold the Crown for the “King of Beers?”

...separate women against August Adolphus Busch IV, has the ‘King of Beers’ lost its crown, has the ‘Prince’ turned back into a ‘Frog’? Outline I. History A. Established B. Prohibition C. Acquisition 1. 1852, St. Louis, Missouri, Eberhard Anheuser, Adolphus Busch 2. From 1920 to 1933, under the Eighteenth Amendment of the Constitution prohibiting alcoholic beverages 3. July 13, 2008 Belgian-Brazillian brewing company InBev purchased Anheuser-Busch at $70 for each and every share as well as created the fresh corporation to be given name as Anheuser-Busch. II. Marketing A. Domestically B. Globally 1. Advertising domination in the United States...

Words: 3089 - Pages: 13

Premium Essay

Portfolio Activity

...4 Study Notes 5 Element 1 – Develop and document strategies for international purchasing 7 Element 2 – Implement international purchasing strategies 10 Element 3 – Undertake more complex international purchasing 12 Element 4 – Determine payment strategies 15 Element 5 – Arrange barter and countertrade 18 Element 6 – Determine logistics strategies 20 Element 7 – Evaluate international purchasing strategies and implement identified improvements 22 Portfolio Activities Semester 2, 2013 24   Introduction Continued pressure to reduce costs and improve spending has fueled a procurement revolution. Pressures to source from emerging markets such as China, India and Eastern Europe demand improved sourcing and supply management skills. Purchasing internationally involves having to expand your knowledge of many aspects of procurement that you don't have to worry about when buying domestically. Differences in cultures, laws, communications, currencies and more. Coordinating logistics, dealing with customs, arranging payment, identifying countries for sourcing, finding suppliers, calculating landed cost, assessing risks, and implementing global contracts. These are a few of the skill set require to purchase...

Words: 4834 - Pages: 20

Premium Essay

Organizational Leadership

...` | | | Faculty of Creative Industries and BusinessDepartment of Management and Marketing Master of Business (PGDipBus) | APMG8117 Marketing Strategy Assessment 3: B2B Marketing | | Semester: | Semester 1, 2016 | Date issued: | Session 1 | Due date and time: | 16th May, 2016, 5:00 PM | Delivery: | * NO late assignments accepted | Total marks: | | Weighting: | | Word limit | | | | Instructions: | Complete this cover sheet and attach it to your assignment. This is an individual assignment and must be your own work. Collusion, copying or plagiarism may result in disciplinary action We advise that you keep a copy of this assignment. | | | Student Name: | Gaurav Juneja | Student ID No: | 1464684 | Lecturer: | Prof. Asoka Gunaratne | Class time: | | Student declaration: | I confirm that: This is an original assessment and is entirely my own work. Where I have used ideas, tables, diagrams etc of other writers, I have acknowledged the source in every case. This assignment has not previously been submitted as assessed work for any academic course. | Signature of student: | | Date of signature: | | | | Table of Contents Topics | Page. No. | Executive Summary | 3 | Introduction to DHL Express | 4 | SWOT Analysis | 6, 7 | Analysis of Internal Environment | 8, 9 | Analysis of External Environment | 9 | SFAS | 10 | Identification of Problem or Opportunity | 10 | PESTEL Analysis | 11 | Identification...

Words: 3538 - Pages: 15