Explain how the global factors in operations and inventory management can help a business sustain its competitive advantage

Topics: Inventory, Management, Supply chain Pages: 2 (732 words) Published: May 11, 2015
Explain how the global factors in operations and inventory management can help a business sustain its competitive advantage In order for a business to sustain its competitive advantage, it must take into account the global factors influencing operations in association with its inventory management processes. A competitive advantage is defined as a condition or circumstance that puts a company in a favourable or superior business position. Both Crumpler and Coca-Cola have monitored these aspects of their business which are leading contributors to them sustaining a competitive advantage which have led to large profit margins and significant proportions of market share. Global factors influencing operations can often affect a business’s competitive advantage, these include globalisation, technology, government policies, legal regulations and quality expectations. In order for a business to successfully sustain its competitive advantage, it must maintain and monitor these influences constantly. Globalisation is defined as the removal of trade barriers between nations. This influences the amount access to new markets. In order to sustain competitive advantage there is a need to expand operations processes to increase size of production; may need to modify the product to suit economic, socio-cultural characteristics of the country and increase supply routes. Also globalisation introduces the threat of increased competition which may lead to the business having to outsource or relocate their operations to lower operations costs. Globalisation can also lead to a Global Supply Chain where business can sources its inputs from the cheapest regions and manufacture where it is cheapest to do so minimising costs and getting the best quality inputs. For example, Motod employs 4500 people worldwide & has 400 suppliers. Manufacturers in 5 different countries with the Hong Kong Office managing the main international sourcing needs. Technology is a major influence on operations...
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