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Essay / Research Paper Abstract
Companies have been creating and maintaining global supply chains for some time. This 9 page paper examines how global value chains are being created and considers the advantages and disadvantages of this practice as well as examining the way it operates. The bibliography cites 10 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEglobsupply.rtf
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Unformatted sample text from the term paper:
used. There are many examples of companies using resources in different countries to create a value chain. This occurs in many industries for example the automotive industry saw Lexus use
Germany for engineering and deign, Asian countries for competent manufacture, Ireland for the call centre and England for marketing function (Thompson, 2005). The textile industry is another where there are
some major potential advantages with the creation of a global value chain, especially as the goods produced are lighter and easier to transport as well as requiring less skilled labour.
If we look at the concept of a companys own supply chain it can be used to create efficiency. Where technology and transportation as well as national advantages offer
opportunities the development a global value chain occurs. There are many companies that use this type of chain, Adidas, Reebok and Nike all use similar suppliers in many cases even
the same suppliers in terms of manufacturing labour. By looking at Nike as an example we can consider the way a global value chain manifests, how it is used and
the benefits its creates, however, similar chains and process may be seen in many multinational companies in other industries, such as Mary Quant in the cosmetics industry as well as
many other commercial segments (Thompson, 2005). Nike is a well known brand name for sportswear, this American based firm sells anything sports related from trainers and football boots to
T-shirts and sweatbands. however, only a small amount of this may be manufactured in the countries where it has the largest sales (Thompson, 2005). With the opening up of markets
and a larger amount of pull factors we can see that Nike are making a success of many markets, even Russia where the goods may cost the equivalent of a
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