Case Study:
1. Export Trading Companies
In response to Crockett, there was some interesting information given regarding export trading companies. Export trading companies are extremely important to getting this country back on the global map as an exporting nation. They are also a huge help to small businesses around the country who want to get involved in exporting internationally. According to an article by Horowitz, the group of businesses that are succeeding the quickest by getting involved in export trade are those that have 20 or fewer employees. (2007) Proving that small businesses are who are trying to grow their export trading outreach. The article also discusses the importance of the states providing the knowledge for the businesses to use to make the correct connections so as to succeed. It goes on to discuss the many different programs and organizations that different highly exporting states offer their residents. The importance of having the state level support to become a successful exporting business is everything. It becomes one less hurdle in the process of being an export trading company.
Reference:
Horowitz, R. (2007). 'Homegrown' American companies learn to export. Gulf Shipper, 18(38), 6-8. Retrieved from
https://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=26666057&site=ehost-live&scope=site
2. Joint Ventures
Lamont, you did a superb job of giving a well-rounded definition of what a joint venture truly is, and how they can be both beneficial to a company looking to expand their market overseas, as well as hazardous depending on how they partake in this transaction. Outside factors have the possibility to play a large role in this venture as well. Beamish and Lupton (2009) accurately explain what all is necessary for a joint venture to work when they state that it requires"necessity of honesty, trust, and commitment for the success of the JV... focusing on what is best for the JV rather than individual partner objectives, and division of managerial responsibilities according to the functional expertise of each partner" (p. 75). Taking on a joint venture is not an easy task, especially when considering the variables of location, foreign currency and pricing, as well as the ability to know whether you can trust your co-partner. However, when decisiveness is used, the benefits of this business association can be very rewarding and profitable. Thank you for your post!
References
Beamish, P. W., & Lupton, N. C. (2009). Managing joint ventures. Academy of Management Perspectives, 23(2), 75-94. Retrieved from
https://www.jstor.org/stable/27747512
Mantrako Crockett
Vantrako, this is a very informative thread regarding supply chain management. I would like to elaborate more on supply chain management. The systematic approach of utilizing the supply chain management helps companies mitigate risk with getting raw materials and delivering products. In addition, it will help minimize overhead cost and shipping delays. With the impact of globalization companies use supply chain management to help facilitate efficient ways for shipping, while reducing cost at the same time. I believe that the author Davis (1993) states it best, "good supply management, while praiseworthy, does not constitute good supply chain management without a concurrent effort to manage aspects of delivering products to customer" (p. 35). A As potential business leaders, we will use the supply chain management to help mitigate risk. This could range from ensuring quality assurance, operational safety, or law compliance. Supply chain management offer great advantages in the global market such as efficient shipping options but risk mitigation is just as important.
Reference
Davis, T. (1993). Effective supply chain management. Sloan management review, 34(4), 35.