Video Transcript Page 1 University Of Phoenix 2010 Cooperati

Video Transcriptpage 1 University Of Phoenix 2010 Cooperate With Supp

Video Transcriptpage 1 University Of Phoenix 2010 Cooperate With Supp

VIDEO TRANSCRIPT Working with the right suppliers, vendors, and business partners can make or break an economic venture. Choosing the best people, explains Carl Hahn, should be the first step. ID: 50V Cooperate With Suppliers From The Start SOURCE , 50 Lessons Ltd. CATEGORY Business and Economics SUB-CATEGORY International Business SPEAKER Carl H Hahn SPEAKER TITLE Former President ORGANIZATION Volkswagen AG, Germany TAGS Automotive Today's automobile industry, contrary to the automobile industries of the planned economies of yesterday, is not highly vertically integrated. In the old days, we made more than 50% of what goes into a car ourselves.

The car today has such sophistication. Today, even a seat is a major engineering element of safety and comfort. With electric motors, you can adjust it in any direction. It is hooked to your air conditioning. It maybe has massage equipment.

It is a sophisticated element that requires specialists; you could not possibly be good in all these areas. Consequently, we brought with us our vendor industry. We helped them connect with forward-thinking Chinese partners. In the beginning, of course, it was not easy; but we quickly found that private entrepreneurs became our partners. It was also partially from the military industries that we found partners in China.

We were transferring know-how. The element of the great difference in strategy of the Chinese government, compared to the Korean or Japanese government in the initial phase, was that they didn't close the market. They opened the market to the import of foreign direct investment. When you import foreign direct investment, you do not only import capital, you also import know-how. So it was for us possible to bring all of the know-how required, to come up to speed quickly, by this policy of the Chinese government.

We created, I can say, the infrastructure of the automobile industry. Consequently, we have also brought the latest thinking of the automobile industry in the world to China. In all of these processes, China didn’t have to go through the long 100 years of development. China entered the modern phase of industry on a high level, saving all of the intermediate steps and, consequently, becoming in many fields today already an international leader. Article Analysis "Cooperate With Suppliers from the Start" Write a 700 word summary that critiques the article based on your experiences.

Identify those areas that you agree and disagree with the speaker. Cite specific examples to support your thoughts. Format the paper according to APA standards.

Paper For Above instruction

The article “Cooperate With Suppliers from the Start” by Carl Hahn offers valuable insights into the importance of early collaboration with suppliers and business partners in the automotive industry, emphasizing how such partnerships can influence a company's competitive advantage and industry development. Based on my experience and understanding of global supply chains, I largely agree with Hahn’s perspective that selecting reliable suppliers early in the process is critical to achieving innovation, quality, and agility in production. However, I also believe that the globalized approach to supplier integration, especially in emerging markets like China, requires a nuanced understanding of local dynamics and strategic adaptability, which Hahn touches upon but could further elaborate.

Hahn asserts that working with the right suppliers and vendors can be a decisive factor in an enterprise’s success. I concur, as supply chain relationships are foundational to quality control, cost efficiency, and technological innovation. For instance, in my previous role at a manufacturing firm, early engagement with suppliers allowed us to co-develop customized components, which improved product differentiation and reduced lead times. The importance of building mutual trust and technical cooperation aligns with Hahn’s view that collaboration with forward-thinking partners, including private entrepreneurs and specialized vendors, accelerates industry development—especially in high-tech sectors such as automotive manufacturing.

The speaker highlights the Chinese government’s openness to foreign direct investment (FDI) as a catalyst for rapid industry development. From my perspective, this strategic openness facilitated knowledge transfer and technology acquisition, positioning China as a global leader in automotive manufacturing. A relevant example is how foreign automotive companies, like Volkswagen, collaborated with local Chinese suppliers and partners, which Hahn mentions, to introduce advanced manufacturing techniques. This experience exemplifies how early and integrated supplier relationships can bolster industry infrastructure and technological capability, ultimately reducing the historical development time span typically required in mature economies.

Nevertheless, disagreements arise when considering the extent to which supplier cooperation alone determines success. While Hahn emphasizes supplier partnerships, I think that factors like government policies, innovation culture, and infrastructure also play vital roles. For example, in developing countries, where regulatory environments are unstable or underdeveloped, effective supplier collaboration must be complemented by robust policy support and investments in human capital. Additionally, in my observation, successful integration also depends on supply chain resilience, which Hahn's narration does not extensively address. As witnessed during recent global disruptions such as the COVID-19 pandemic, reliance on interconnected suppliers can pose risks, underscoring that collaboration must include contingency planning and risk management strategies.

Furthermore, from my experiences working with international suppliers, I have seen that transparency and strict quality standards are essential to foster effective collaboration. Hahn’s account of Chinese suppliers transitioning from military industry partners to commercial vendors underscores the importance of knowledge transfer and technological compatibility. Still, it also raises the concern that supplier relationships, if not managed carefully, can lead to intellectual property issues or dependency risks. Therefore, while early cooperation is advantageous, establishing clear contractual terms and safeguard mechanisms remains crucial to mitigate potential downsides.

Finally, Hahn’s overview of China’s rapid leap into a modern industrial economy demonstrates how open markets and strategic foreign investment can rapidly accelerate industry development. From my perspective, this model is replicable in other emerging economies if supported by transparent policies, skilled workforce development, and sustained innovation efforts. Yet, I believe that long-term success also depends on cultivating an entrepreneurial environment and ensuring sustainable practices within supplier networks. Industry leaders should balance cooperation with suppliers with overarching strategic focus on innovation, sustainability, and resilience to global market changes.

In conclusion, Hahn’s emphasis on early and strategic supplier cooperation aligns well with contemporary supply chain management principles that stress collaboration, trust, and technological integration. While I agree with many of his insights, I also recognize the complexity of global supply chains that requires a broader strategic approach encompassing policy, risk management, and sustainable practices. Future industry success will depend on how effectively companies can balance these elements while fostering innovative partnerships that sustain long-term growth.

References

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• Gereffi, G. (2018). Global Value Chain Analysis: A Primer. Center on Globalization, Governance & Competitiveness.
• Hahn, C. (2010). Cooperate with Suppliers From The Start. University of Phoenix.
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