International logistics strategy
For instance, there may differences in infrastructure between the mother country and the other country chosen for distribution. Besides this, there may be problems faced in the business environment such as standardized equipment post dated checks cultural differences foreign government issues requirements for success If the target company chosen is located in the third world, then chances are that those respective partners may not have sufficient infrastructure to support the logistical requirements of that company.
However, it may be possible to find that that third world country may have cheap labor necessary to coordinate logistics services. Consequently in order to deal with the inefficiencies in one country, then it is necessary to offset these problems by investing in another country. For instance, if the other country chosen for investment is in the first world, then chances are that they would have better infrastructure or less cultural and political differences with the mother country. However, first world country would have high labor cost and these can be a problem.
As it can be seen hedging will help the electronics company to compensate for the lack of certain features in one country through the prevalence of those features in another and this can go a long way in minimizing their risk. Small companies have minimal resources, consequently, they cannot afford to take up too much risk as it would harm them tremendously if their risk did not translated into rewards c) If the electronics firm was a large firm, then it would be advisable to employ a flexible distributional strategy.
d) This is because a flexible strategy allows the company to embrace operational exposure. This is only possible if the company employing this strategy has excess capacity. Since it is a large firm then excess capacity is not a problem and it can therefore implement it. This strategy also requires a series of distribution channels and this is also plausible for a large company. Besides these, the electronic manufacturer would require numerous suppliers which is likely to be the case if it is a large firm.
(Hamilton, 2008) The flexible strategies require that a company’s coordinating mechanisms be improved tremendously. Again, since this is large firm, then chances are that it may have efficient coordination. A small firm would not b bale to effectively implement the flexible strategy because it requires the use of heavy capital investment which would only possible after conducting business for a long time or if there are already high levels of returns emanating from the company under consideration.
This kind of strategy would assist the company in improving its political leverage within any company under consideration. It would also help them in the process of improving its availability. Dimensions related to supply chain management a) Distribution would go a long way in boosting conformance requirements. This is because through transportation functions in supply chain management, it is possible for goods to reach the consumer or retailer for intermediaries. Transportation function are essential because they can either make or break the supply chain.
Their choice determines the speed with which products reached their intended consumers and also the condition of the products before reaching those receptive areas. For instance, the use of air transport would ensure that goods reach consumers in good conditions and as fast as possible. (Paul, 2007) Additionally, supply chain management ensures that goods are stored in the right manner so as to ensure that they can be easily retrieved when needed, that their volume is sufficient enough to meet consumer demand and that they keep goods in the best conditions.