Tuesday, February 25, 2020

Operations Management - 'iPhone' Supply Chain Management and Networks Essay

Operations Management - 'iPhone' Supply Chain Management and Networks - Essay Example nded that Schumpeter’s â€Å"creative destruction† analogy is central to effective operations management and the supply chain network in the contemporary business model and envisaged entrepreneurial vision as the force of sustained, long term economic growth, with the gales analogy symbolic of the destruction of monopolistic markets, which facilitated abuse of market position and power (Reinert, H., & Reinert, E.S., 2006) Schumpeter further argues that internal innovation within a business operational framework produces lower costs, which in turn permits companies to sell products at lower prices, which is referred to as dynamic efficiency (Utterback, J. 1996). This in turn highlights a key element of Schumpeter’s model that competition for innovation as opposed to competition for customers is the most important (Utterback, J. 1996). Indeed, the proliferation of Apple’s growth as a brand and business phenomenon in the digital arena arguably symbolises Schumpeter’s â€Å"creative destruction† model in its operations management and supply chain as it â€Å"enables organisations to control the quality of inputs and the opportunity to expand using existing skills† (Boddy, 2005). Moreover, Schumpeter’s view of entrepreneurial innovation embodies the â€Å"gale of creative destruction† as the continuing cycle of innovation, which renders existing technology, skills and equipment obsolete. Innovation in this context essentially becomes essential as the foundation of dynamism in line with Schumpeter’s theory that the evolution and sustainability of a successful business model is not dependant on how capitalism administers existing models, but rather with how it destroys them through creativity to survive long term growth (Metcalfe, J.S. 1998). From Schumpeter’s â€Å"gale of creative destruction† theory proposition, large companies benefit from economies of scale associated with segmented working practices, and in addition technological advances are generally

Sunday, February 9, 2020

Reasons why a Large Company in One Country Might Wish to 'Go Global' Essay

Reasons why a Large Company in One Country Might Wish to 'Go Global' and the Various Ways it Could Expand its Operations Oversea - Essay Example Going global has become the norm because it offers the companies a range of opportunities to move ahead further and increase their profits in the long run (Orr & Sohal). It makes them realize their due potential and the risks that they could take to achieve supremacy within their line of business. Nearly all companies wants that it expands its operations within the far flung areas of the world in order to increase its sales and bring new customers into the equation. The large companies are no exception to this rule as they look to exploit the weaknesses of their competitors and build upon the strength that possesses within their folds. What is even more significant is the fact that these companies have started to understand the nuances related with growing far and wide which essentially allows them to develop in an out and out manner. The senior management domains within these companies are looking at exploring newer markets because they believe that the unique customers provide a go lden opportunity for the company under consideration and the outsourcing debates are also settled in an amicable way (Townsend, Cavusgil & Yeniyurt, 2004). This is indicative of the numerous discussions that are being done within the going global perspectives and which have more or less touched upon the new understandings of growth and development for the sake of the companies in the modern times. These companies are doing their best to find out where the opportunities lie and what is it like to tap them before their competitors are able to do just the same. Hence the intention is to bring along all the necessary resources and find new avenues and routes which will eventually build upon the profits and expand left, right and center around the world. The companies are therefore looking at areas from where they can cut down on costs and bring in more profits. This debate comes directly under the realms of the outsourcing ones because third world countries are seen as the most helpful ones, where they bring cheap labor with them yet look at establishing offices which cut down on costs immensely. In essence, the entire world has come out as a whole new ball game for the companies which earlier used to believe in a single local marketplace. Now the times have changed and that too for all the right reasons as has been evidenced by recent examples of some companies which have made it big around the world by exploring newer markets (Gregory & Shi, 1998). One of the other reasons behind companies going the global way is because they have started to realize that just being limited to a single place would not allow them to grow beyond a certain measures. Thus they need to enact strategies and find pathways which will double or tripe their expected sums in the coming times. This is the reason why these companies are always on the look out for newer markets, diversified product forms tailored for new and potential customers, and local market suited products and services. I n essence, the role of the companies within such a fray is a precisely sensitive one since they have to decide who to hire, where to purchase all the resources and how to go about doing operations within a new country which effectively is quite a risky process. The companies have also realized the fact that the local laws and regulations are also something which must be