Globalization And The Value Chain: The Purpose Of This Assig
Globalization And The Value Chainthe Purpose Of This Assignment Is For
The purpose of this assignment is for you to evaluate the impact of globalization on the value chain by applying elements from the Contemporary Value Chain model and additional decision-making factors. Use the APA formatted Microsoft Word document template in Course Documents titled “Unit 4 Assignment Globalization” as the starting point. Download the template and save it as your own document, for example, YourNameUnit4GB570.docx. Write an APA formatted 4–6-page paper, exclusive of the Title and References pages. In your paper, address the following requirements using the directions included within the Unit 4 Assignment template.
Write your paper using third person perspective (do not use first- or second-person pronouns; e.g., “I,” “me,” “you,” “we”). In your paper, apply the 21 elements from the Contemporary Value Chain model, plus additional decision-making factors (all listed below), to evaluate the impact of globalization on a value chain. The considerations that need to be addressed are related to the ultimate goal of earning customer value, which includes customer delight and profitability. Within each element, describe what decisions may need to be made, for what reason, by whom, for what reason, and how the elements are interrelated. The 21 Value Chain Elements are:
- Budgeting
- Competitive advantage
- Corporate social responsibility
- Culture
- Customer need
- External resources
- Financial goals
- Idea generation
- Information management
- Infrastructure
- Leadership
- People – human resources
- People – customers
- People – shareholders
- Political (external)
- Political (internal)
- Product development
- Strategy
- Supply chain management
- Technological considerations
Include a conclusion summarizing the paper’s content without introducing any new information. Support your response’s content with at least three separate applied and cited references. Accepted sources are: library articles and your textbook. No other Internet references are acceptable for the assignment. Apply and cite no more than one referenced sentence per paragraph. Use APA in-text citations and provide a complete APA formatted reference list at the end.
Paper For Above instruction
Globalization has profoundly transformed the landscape of contemporary business operations, significantly impacting the value chain by influencing decision-making processes across its various elements. The contemporary value chain model comprises 21 elements that collectively determine how companies create, deliver, and sustain customer value and profitability in a globalized market. This essay evaluates how globalization influences each element, highlighting the critical decisions made, the responsible parties, and their interrelationships within this interconnected framework.
The first element, budgeting, is affected by globalization through fluctuating costs and currency risks, necessitating strategic financial planning by finance managers to allocate resources efficiently amid market volatility (Ghemawat, 2017). Competitive advantage, shaped by a firm's ability to leverage global supply chains and innovation, requires strategic decisions by executives regarding differentiation and cost leadership in diverse markets. Similarly, corporate social responsibility (CSR) becomes increasingly relevant as firms navigate differing environmental and social standards across countries, requiring decision-making about ethical practices and stakeholder engagement (Porter & Kramer, 2011).
Cultural considerations influence customer needs and behaviors, prompting managers to adapt marketing strategies and product messaging to local contexts. External resources, such as global partners and suppliers, demand decisions about sourcing and integration to optimize supply chain efficiencies (Christopher, 2016). Financial goals are recalibrated based on international market opportunities and risks, influencing investment decisions and shareholder expectations. Idea generation, driven by exposure to diverse markets, fosters innovation but also requires careful selection and development processes managed by research and development teams.
Information management becomes increasingly complex as companies operate across borders, requiring investments in systems that facilitate real-time data sharing and analytics to support timely decision-making (McAfee & Brynjolfsson, 2017). Infrastructure decisions involve expanding or upgrading facilities to support global operations, which are influenced by local regulations and market potentials. Leadership plays a vital role in guiding organizational vision and aligning global teams toward common goals, often requiring culturally sensitive leadership styles (Hofstede, 2011).
People, both human resources and customers, are central to a company's global value chain. Human resource decisions involve talent acquisition and development strategies tailored to meet local labor laws and cultural expectations. Customer engagement strategies must adapt to diverse preferences, often requiring localized customer service approaches. Shareholder interests must be managed carefully, balancing short-term gains with long-term sustainability, especially in different regulatory environments (Fatemi & Glaum, 2017).
Political factors, externally and internally, influence decision-making at multiple levels. Externally, government policies, tariffs, and trade agreements impact supply chain and market access, necessitating adaptive strategies. Internally, political stability and organizational politics can affect internal resource allocation and strategic priorities. Product development strategies are shaped by technological considerations, requiring continuous investment in R&D to stay competitive amid rapid technological change (Tidd & Bessant, 2018). Supply chain management becomes more intricate, demanding sophisticated logistics and risk mitigation strategies to navigate global disruptions.
Technological considerations, including digital transformation initiatives, enable organizations to streamline operations and enhance value creation. Advances in technology affect nearly every element of the value chain, from idea generation and information management to product development and supply chain logistics (Brynjolfsson & McAfee, 2014). Overall, globalization's influence permeates every aspect of the contemporary value chain, compelling organizations to make strategic, informed decisions that align with their competitive and customer-centric objectives.
In conclusion, globalization profoundly impacts each element of the value chain, necessitating a holistic and integrated decision-making approach. The ability of firms to adapt and optimize these elements in a global context determines their capacity to deliver customer value, achieve competitive advantage, and sustain profitability. The interconnected nature of these elements underscores the importance of strategic alignment and comprehensive understanding in navigating the complexities of globalization.
References
- Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. W. W. Norton & Company.
- Christopher, M. (2016). Logistics & supply chain management (5th ed.). Pearson.
- Fatemi, A., & Glaum, M. (2017). How global is corporate social responsibility? Corporate Governance: The international journal of business in society, 17(4), 678-693.
- Ghemawat, P. (2017). Redefining global strategy: Crossing borders in a shifting world. Harvard Business Review Press.
- Hofstede, G. (2011). Cultures and organizations: Software of the mind. McGraw-Hill.
- McAfee, A., & Brynjolfsson, E. (2017). Machine, platform, crowd: Harnessing our digital future. W. W. Norton & Company.
- Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.
- Tidd, J., & Bessant, J. (2018). Managing innovation: Integrating technological, market and organizational change. Wiley.