Explain & discuss how UK manufacturers can effectively create and capture value in global business networks.
A ‘global business network’ consists of all the value-adding firms involved in the supply of products and services to end-users. Managing these networks has become increasingly challenging as firms specialize within the value chain and become more globally dispersed.
The industrial revolutions made UK the factory of the world until the end of the nineteenth century, since the Second World War, UK has been working hard on revitalizing the economy and manufacturing under the background of globalization.
In order to reach the goal of creating and capturing value, UK manufacturers need to consider:
• PSM: purchasing…show more content… Under the background of globalization, it is a big challenge for a firm that to manage its first tier suppliers or the whole chain upstream from its position in primary of secondary network (PPT2 slide3), as buyers vary world-widely and are highly active in selecting from global suppliers.
Effective PSM is based on properly defining the boundary of the firm, aligning supply strategy with the generic strategy, achieving best value for money from the supply base, understanding buyer-supplier power relations, and adopting a contingent approach to managing the supply base within business networks. (PPT2 slide26)
Operation management means to plan, organize, implement and control the process of operation, and it is the general term of all the work related to the creation of products and service. On the other side, operation management is the design, manipulate, evaluation and improvement of the system that creates the products and services in a firm.
The main aims that operation management needs to control are quality, cost, time and flexibility, and those are the roots of a firm’s competitive forces. Therefore, operation management is very significant to a firm, especially in recent 20 years, the size of modern firms keeps constantly enlarging, and the level of technology and knowledge containing in a product keeps improving while the producing process keeps complicating.
However, in world wide, the diversity and variety of market demand is