GSCM 211 Final Review
What did Thomas Friedman say about trade?
"the world has moved from periods of being round (where trade barriers are high) to periods of being flat (where barriers to trade are lowered)"
Containerization saves shipments ____ in loading and unloading activities. ~1 month ~2 weeks ~8 weeks ~3 days
2 Weeks
According to Ashifi Gogo, the pharmaceutical supply chain is complex and not linear. Studies show that up to ___ companies can touch a product before it ends up on a pharmacy shelf.
30
The Logistics Performance Index (LPI) of a country is based on which of the following factors? All of these Border clearance efficiency Infrastructure quality Timeliness of shipments
All of these
According to the video from Arizona State University, how can companies use their righteousness as a competitive weapon? By becoming a monopoly By lobbying governments to enact regulations By vertically integrating None of the above
By lobbying governments to enact regulations
The Project from the Belt and Road
China's ambitious project that aims to build efficient infrastructure from China to Europe
Erin Meyer's 8 Scales = Persuading
Concept-first = Italy, France Application-first = US, Canada
Erin Meyer's 8 Scales = Disagreeing
Confrontational = Israel, France Avoids Confrontation = Indonesia, Japan, Thailand
Erin Meyer's 8 Scales = Deciding
Consensual = Japan, Sweden Top-Down = Nigeria, China
Trade-Offs
Cost Speed Dependability Quality ○Originally short-term trade-off between cost and speed (seesaw) ○"Not always the case." -Ferdows and De Meyers
Erin Meyer's 8 Scales = Evaluating
Direct Negative Feedback = Russia, Israel Indirect Negative Feedback = Japan, Thailand
What does Service Operations entail?
Do we hire and manage employees who will represent our company in an international location? Or do we contract with a third party provider to offer our services? As you can imagine there are benefits and challenges with both options. With self-governance organizations can control quality and outcomes more tightly. Costs may also be lower self-managing service operations.
What does Physical Operations entail?
Do we open a new physical location we built from the ground up? These are also called Greenfield (new physical location) Developments. Or do we choose to lease or rent a property? Or do we choose to outsource operations completely?
Erin Meyer's 8 Scales = Leading
Egalitarian = Denmark, Netherlands, Sweden Hierarchical = Japan, Korea, Nigeria
What are the three positive impacts that happen through Supply Chain?
Environment Social Economic
According to Albrecht, developing a strong personal code of ethics is essential to minimize the pressure element in the fraud triangle. True OR False
False
Counterfeit drugs should be looked at as similar to placebos True OR False
False
Organized crime and is NOT recession resilient True OR False
False
The Foreign Corrupt Practices Act (FCPA) is a law that keeps US citizens from accepting bribes in US business affairs. True OR False
False
What are the four parts of the Sand Cone Model?
From Increasing to decreasing - Cost Efficiency - Speed - Dependability - Quality
Who is mentioned as the top performer in the Logistics Performance Index (LPI) in the 2016 report? Germany Syria Singapore Netherlands
Germany
Production of illegal drugs are shifting to the Western world because: Synthetic pills are increasing in market share over heroin and cocaine Globalization The West has always been a major area of production because they consume the most The increase in police resources monitoring imports/exports
Globalization
Why was Bill able to stay 80 million under budget on Alcoa's "America to Russia" exhibit project? He found more sustainable solutions and the government subsidized his work He completed the project faster because his employees believed in the project He refused to pay bribes
He refused to pay bribes
Offshore Outsourcing
Hiring external organization to perform business in a country other than the one where the product is made.
What is the importance of Global Ethics?
How we resolve (or fail to resolve) the dilemmas of global ethics will determine the framework of future global governance.
What falls under Socio-Cultural in PEST?
Human Rights Culture Language
How did Paul ONeil say he would know if he had been a successful leader of Alcoa? If they always keep the mission to be the best company in the world If by the time he leaves, every employee can recite all the articulated values Alcoa has If by the time he leaves the shares have doubled in value If work day rate continues to fall long after he's gone
If work day rate continues to fall long after he's gone
What falls under Technological in PEST?
Information Systems Technology Platforms Consumer Access to Technology
Which global sourcing option involves bringing processes handled by third-party firms in-house? Offshoring Insourcing Farmshoring Offshore outsourcing
Insourcing
According to Bill O'Rourke, what value should always be in writing as an important priority for the company? Integrity Safety Transparency Dedication/Excellence
Integrity
What does Ownership entail?
Is the company a fully owned subsidiary? A joint venture? Or some variation of a license or franchise model? From an operational perspective, we are concerned with the level of supply chain and operational support needed under each ownership condition.
What are three examples of illicit supply chain items that you learned about in class?
Knock-off bag Illegal trafficked labor Counterfeit medication
What falls under Political in PEST?
Laws Property Rights Political Stability
Erin Meyer's 8 Scales = Scheduling
Linear Time = Germany, Switzerland Flexible Time = Nigeria, Saudi Arabia, India
Erin Meyer's 8 Scales = Communicating
Low Context = US, Canada High Context = Japan, Korea
What falls under Economic in PEST?
Market & Trade Cycle Currency Fluctuations Economic Growth
Insourcing
Moving processes handled by third-party firms in house
Homeshoring
Moving service industry employment from offices to home-based
Offshoring
Moving work to a distant country
Timothy Ballard's experience
Operation Underground Railroad. Organize activities to stop child trafficking
Farmshoring
Outsourcing to USA rural-located compaies
What did Misha Glenny say was the main obstacle to stop the smuggling of cigarettes from Montenegro to Italy? Bribery and police corruption Lack of information Political instability Police resources not matching that of the gangs
Police resources not matching that of the gangs
What does PEST stand for?
Political Economic Socio-Cultural Technological
According to the article "Toward the End of Poverty", replicating what was done in China to lift people out of poverty in Africa and India will be more difficult due to ____ in Africa and India. Social inequality Lower tariffs Population growth Poorer governance
Poorer Goverance
According to W. Steve Albrecht, what are the three elements of the fraud triangle? Rationalization, ethics, and character Pressure, opportunity, and rationalization Perception, motivation, and values Opportunity, compromise, and integrity
Pressure, opportunity, and rationalization
What do companies need to be willing to do to achieve sustainable business practices? Care about the customer more than anything else Reduce profit margins Redesign successful products and services Avoid government regulations
Redesign successful products and services
What is identified as a major concern for traders and logistics providers in the article, "Connecting to Compete"? Lack of government support Natural disasters Supply chain reliability Geopolitical conflicts
Supply Chain Reliability
Erin Meyer's 8 Scales = Trusting
Task-Based = US, Netherlands Relationship-Based = Saudi Arabia, Nigeria, China
What is Bretton Woods System? And what does it consist of?
The foundation of the majority of world trade. -financial and commodity interdependence -US dollar as the main trading currency -Tariffs reduced or eliminated
How can supply chains make an impact? Through political lobbying Through choices related to suppliers, manufacturing, hiring practices, etc. Through environmental protests Through social media campaigns
Through choices related to suppliers, manufacturing, hiring practices, etc.
According to Misha Glenny, organized crime operates similarly to any other global business with zones of production, distribution, and consumption. True or false? Zones of production tend to lie in the developing world often threatened by violence. True OR False
True
Global Ethics will shape and limit the possible relationships and opportunities of all global actors. True OR False
True
Global ethics has become a recognized area of study in an exceptionally short time. True OR False
True
Paperwork and long delays at borders are especially a concern for landlocked countries with low-income economies. True OR False
True
The top performing countries according to the LPI have remained relatively constant since 2010. True OR False
True
What does the Fraud Triangle primarily focus on? Promoting harsher punishment All of the above Identifying ethical individuals Understanding the drivers behind fraudulent behavior
Understanding the drivers behind fraudulent behavior
According to Bill ORourke, if you have something as a value You get results You differentiate yourself from your competitors You get results You have regular meetings about it You make friends with your employees
You Get Results
What are two negotiations of Mitchell's Principles?
a ) A set of values that guided the party's negotiating by only using democratic and peaceful methods for advancing their political objectives. b) Mitchell emphasized the importance of trust in negotiations, he said, "it's hard to restore trust [and] easy to lose it."
What are two negotiations Harvard Article?
a) Research your counterpart's background and experience. b) Enlist an adviser from your counterpart's culture. c) Pay close attention to unfolding negotiation dynamics.
What are two negotiations of Bill Ury?
a) The mythical 18th camel b) The "Third side" is each of us.
What is Mercantilism?
countries controlling trade so they export more than they import
The fraud triangle states?
that individuals are motivated to commit fraud when three elements come together: - Perceived Pressure - Perceived Opportunity - Rationalization
Logistics
the planning, storage, and movement of inventory
Adam Smith wrote The Wealth of the Nations and talked about absolute advantage. What is Absolute Advantage?
•A party can produce a good or service more efficiently than its competitors. •Producing goods and services at a lower opportunity cost
What does globalization do?
•Extends the make or buy of decisions beyond national borders. •Exchange of information, ideas, goods, etc. faster across the globe •Increases interactions Example = iPhone parts
What are some pros of Globalization?
•Increased awareness of other cultures and countries •Globalization encourages innovation •Income of low cost labor in developing countries has increased •Developing countries have increased access to first-world products
Kaizen
•Japanese word meaning continuous improvement. •The system that Toyota uses to make products faster, cheaper, and better •Requires continuous improvement, a lean system and close physical suppliers
What are three benefits of global trade?
•Raise the standard of living for both developed and developing nations •Jobs and investment are often exchanged and flow both ways •Experiencing automation
What are Technology Clusters?
•Regions of interconnected buyers, suppliers and producers of complementary solutions - Example) Silicon Valley •They are not easy to move. Takes time and investment to move
What is Protectionism? And what does it entail?
•Taxing imports to protect a country's domestic industries from international competition •Encourage growth within the country •Sometimes protectionism fails -Example: Harley Davidson
What are some cons of Globalization?
•Unequal opportunities across the world •The world's wealth is increasingly concentrated (rich getting richer) •Globalization strategy is poorly managed (damage of the environment)
Containerization - Malcom McLean
○Allowed for easier intermodal transportation loading from trucks to ships ○Products shipped in bulk - lowers shipping costs ○Main Idea: Save Time!!!
Who can help reduce and eliminate Illicit Supply Chain?
○Consumers ○Businesses ○Governments
What does the Sand Cone Model entail?
○Cumulative/lasting manufacturing ○Build quality -> dependability -> speed -> cost (Hierarchy) ○Requires long-term approach
What three things can we do to limit perceived pressures?
○Live within our means ○Care about others/Develop strong ethics ○Increase transparency in decision making process
What are two ways to Identify a website affected by illicit supply chain activities?
○The company includes descriptions of "genuine" or "straight from the factory" products. ○The URL doesn't match the business name.
What is the Foreign corrupt practices act?
○Was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. ○Anti-Bribery
International Business Culture and Supply Chain
●Main Idea: managing the cross-cultural interactions between suppliers, government regulators, and third-party logistics providers, requires a good understanding of how to manage cross-cultural interactions.