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Main themes and concepts from Finance relate to each other in a global…
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increased adaptability from vendors. inexpensive sourcing. Reduce labour costs. outsourcing of business processes.
Economies of scale put pressure on standardisation.
scope economies.
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Pressure to specialise: mass personalisation. operations that are committed.
overseas facilities and extended supply chains. domestic versus foreign employees. Enhanced dangers
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the need to modify goods and services for regional markets.
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risks associated with standardising goods and services that could alienate consumers.
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The course of any future planned integration: If we are in the middle tier of a supply chain, we can either integrate downstream (to purchase our distributors or customers) or upstream (to purchase our suppliers).
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The degree of integration: Next, we must decide how much of an upstream or downstream integration is necessary. Is the supply of components sufficient, or do we actually want to control our raw material producers? Is it better for someone else to handle retail, or do we want to get involved?
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The integration's equilibrium We must discuss how much capacity each supply chain tier should have. Should we purchase out some supply or do we want to have enough capacity at one tier to cover all of our needs?
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