Foreign Facilities and SCM
The goal of this activity is to develop your skills in analyzing international business issues and finding relevant information. You must cite all resources used and include an APA-formatted bibliography. Your Activity responses should be both grammatically and mechanically correct, and formatted in the same fashion as the Activity itself. If there is a Part A, your response should identify a Part A, etc.
Part A Using ProQuest and Internet research, discuss what factors make international distribution more complex than domestic distribution.
Part B Using Toyota as an example, what has been the influence of Japan on supply chain management? In your answer, discuss the concepts of industrial clustering and quality.
Part C Why is global HRM more difficult than domestic HRM? How can staffing a foreign facility with locals alleviate some of these HRM difficulties?
International Operations
Part A
Following the financial catastrophe experienced around the globe, the political orientation and economic stability have been traced back to unsteady nature, nationalism, and trade wars (Aguilera & Grøgaard, 2018). The overall global economical status has become hard to predict the trend which leads to obstacles being faced by business operations that would want to expand to international levels. Globally active companies continue to gain greatly from their investments, and technology, in particular, is facilitating this in numerous ways (Chi et al., 2019). But as policies and guidelines, ranging from labor laws to tax, accounting, and fiduciary duties, get more complex and fragmented, so do the penalties for not managing that complexity (Eden & Nielsen, 2020). Unfortunately, market opportunity and complexity often go hand in hand, with some of the most popular investment locations also being some of the most difficult to conduct business in safely and legally. That does not imply that you should ignore those opportunities (Aguilera & Grøgaard, 2018). However, it implies that you must take into account the costs and repercussions of breaking local regulations and be careful not to underestimate the challenges of doing business there (Guercini & Milanesi, 2020). Some of the factors that ensure the international market is much more complex compared to the local market are:
- Reporting requirements: this ensures transparency in the international market and investment, especially when dealing with issues of tax regulations, and money laundering services in the foreign market.
- Amendments in the law and regulations: changes are made from time to time with a better aim.
- Implementation of labor laws: in the local market, the laws that have been created to tame the operation of local businesses tend to make it harder for organizations that wish to operate on an international basis.
- Punishments to the operations that do not comply: In many localities, the punishments levied by the government are thought to be excessive. In general, the main components of consideration are retail prices and suppliers’ international central location aims, cost-related costs for the items, interest from commercial centers, and competition. Amazing costs, currency variations, surprise economic patterns, and operational and consistency contrasts may need to be added as additional factors.
Part B
The cornerstones of Toyota Inc. include a long-term perspective, personnel development, effective operational practices, and continuous delivery of answers to basic problems (Brown et al., 2005). Together, they lay the groundwork for company expansion, continued development, and the training of personnel who will further the objective of value creation in the future. As a long-time leader in manufacturing, Japan is significantly impacted by the need to get resources from “lesser nations,” which include both developed markets like China and developing ones like Brazil, Russia, and India (Eden & Nielsen, 2020). Toyota motor goods are manufactured and distributed using the raw materials that are purchased. Japanese companies agree that commercialization has reduced retail costs and that those local marketplaces are fundamentally congested. Due to the effects of global sourcing and procurement, many people have searched for new, worldwide markets, many of which are located in the same regions whose economies were heavily affected by these practices.
Therefore, Japan’s newest markets—many of which are closer to Japan than they are to North America or Europe—might also be its most sought-after locations for supply and production. Furthermore, when it comes to this worldwide cycle of sourcing and market creation, Japanese businesses have a lot more experience than their counterparts in other regions of the world. Think about the enduring forces behind North American industry, such as the efficiency of American customers and shortened supply chains. The chances are high that the Japanese car you purchased in the US was produced here. Another factor influencing the Japanese supply chain strategy is the rising frequency of mergers and acquisitions. M&A is less common in Japan than in many other nations, but Japanese businesses across various industries are increasingly collaborating with other organizations that have similar goals.
