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Competing in a global context (Global Trade Environment (Challenges (Off…

- - - - Porter's Five Forces
      - Porter's Diamond Model
  - - - Difficult to reshore
        
        Costs Involved
        
        Movement of assets
      - Risks Involved
      - Changes in performance variables such as; speed, quality and flexibility
      - Unit Cost
  - - - Local Factors #
      - Country Specific Factors #
  - - - EU
      - Free Trade Agreement
      - GATT & WTO
        
        Enforces Agreements
        
        Resolves Dispributes
    - - Germany; Automobiles
      - Italy; Fashion Industry
- - - - Increases Further away from consumer
      - Difficult to eliminate
      - Can happen at any point in supply chain
    - - Reduce stages in supply chain
      - Reduce Lead Times
      - Smaller, More Frequent orders
      - Sharing Information
      - Limiting Promotions
  - - - Increased Supply Chain Risks
      - Loss of Control
      - Costs Involved
    - - Clear costs Involved
      - Reduced need for capital Investment
      - Fewer Direct Staff
    - - The Barnes Outsourcing Matrix
  - - - Upstream
      - Downstream
    - - Guaranteed Supply Chain
      - Greater Control
      - Economies of Scale
    - - Need for Capital Investment
      - Local Infrastructure may not be sufficient
      - Reduced Flexability
    - - Ford River Rogue
      - Oil & Steel Companies
      - Birdseye Food
- - - - Long-term Approach
      - Investment into projects
    - - Helps Struggling Countries
      - 10 Countries Contribute Most
      - 189 Members
      - Working to prevent corruption
  - - - Determine by Demand & Supply
      - Exchange Rate Depreciation
        
        Imports Become More Expensive
        
        Increase in demand
        
        Increased Cost of Final Goods
        
        Cause of Inflation
        
        Improve Current Account #
      - Exchange Rate Appreciation
        
        Cheaper Imports
        
        Exports Become More Expensive
        
        Decrease in Demand
        
        Worsen Current Account #
    - - Transfer Pricing
        
        Arms-Length Principle
        
        Unitary Taxation
        
        Transfer mis-pricing
        
        Tax Evasion
      - Tax Rates Vary From Country to Country
    - - IFRS
      - Auditing
      - 2016 New Tax Reporting Requirements
- - - - Customisation Specific to local market
        
        Fashion
        
        Food
        
        Culture Adapted Goods
    - - Benefits
        
        Sharing of ideas, technologies and resources
        
        Innovation
        
        Reduces Poverty
        
        Increased Profitability
        
        Creates Jobs
      - Drawbacks
        
        Can cause inequality in developing countries
        
        Demand can cause inflation
        
        effects of the Macro-environment
        
        Rise of domiant brands can effect local businesses
  - - - STEEPLE
      - SWOT Analysis
      - PESTLE
    - - Five Forces #