The paper "Unified Definition of Supply Chain Management" Is a perfect example of a Business Assignment. Businesses operating on a global scale are the ones that are most affected by globalization. The scale with which businesses are affected by globalization can be understood when one looks into the value commodity chain of a company operating on a global scale, like Nike. Nike is a publicly-traded sportswear and sports equipment supplier with more than 30,000 people worldwide (Sage, 2008). The slide from the lecture shows how globalization is affected by business.
The slide presents three important concepts apart from the value commodity chain and these are concept, globalization, and logistics. The discussion of the elements presented in the slide and its application to Nike appears below. The value commodity chain presented in the slide is divided into two parts – the concept part which includes R& D, Branding, and Design and the Logistic Part which include Manufacturing, Distribution, Marketing, and Sales. The first three parts of the value chain are referred to as concepts because the details of the products are conceptualized in these stages before they are actually produced.
One can notice that with the presence of globalization, the concept chain is declining until it reaches the minimum which is manufacturing. The idea behind this graphical representation of the concept makes sense when one looks at Nike. Nike operates mainly in Oregon, USA but with the increasing movement of people in the United States and the growing demand for an equal employment opportunity, Nike is able to hire people from various cultures, geographical regions, and perspectives to work on its conceptualization. Nike’ s R& D depends highly on various disciplines and perspectives.
The more people there are to contribute to the R& D, Branding, and Design and the more diverse they are, the closer Nike gets to what makes the market tick. The added value is high for R& D because a great number of raw ideas can give Nike an advantage when it comes to product research and development. Nike values the ideas of people from different cultures and from all walks of life because the different perspectives they pitch in will add to the product knowledge of Nike.
For example, with different ideas, they would gather from people, they could come up with good running shoes. While the added value is still high for branding, it could not be as high as in R& D. This is because Nike uses a smaller number of people to work on its Branding. For example, Nike assigns specific departments or people to work on the branding concepts and this number of people is significantly less compared to the people whose ideas were collected during the R& D phase. The more specific the work required in the concept part, the fewer Globalizations adds value to the value chain.
This can be seen on the Design phase as well. People and departments assigned in the Design phase are not so much affected by the influence of globalization and on the other hand, globalization does not add much value to the design phase. This is because regardless of the influence of globalization on the organization as a whole, the Design phase will only perform what it is required to design and the only effect globalization has is the globally-acceptable design R& D and Branding phases have come up with.
As can be noted on the graph the value added by globalization decreases as the chain belonging to the concept part progress in time.
REFERENCEJang-soo Ryu, Sung-joon Paik, Dae-shik Lee, Hyun-joong Jun, Eui-soo Cho and Jong-han Kim. Supporting the Contribution of Higher Education Institutions to Regional Development. OECD Report. January 2006.