global sourcing
DESCRIPTION
SMALL REVIEW ABOUT HOW OUTSOURCING IS DONE AND WHHAT ARE THE FACTORS INVOLVED IN GLOBAL SOURCING.TRANSCRIPT
Global SourcingRajani Raising.
Roll no 62.Human Resource Mgmt.
Global SourcingGlobal sourcing is a term used to describe practice of sourcing from the global market for global market for goods & service across geo- political boundaries.
Global Sourcin
g
Low- cost skilled labor.
Low- cost raw- material.
Tax breaks & low tariffs.
U.S.A
On- site team
Canada
India
Off- shore Facility
Near- shore FacilityProject mgmt,Client
Interface,Analysis,
Final integration
High- priority,Support
Integration Testing
Programming, Routing Support,
Unit Testing, QA.
Global
Sourcing
Ideal Industries for Global Sourcing
Manufacturing
Skilled Services
Telephone Call centers
Adam Smith Absolute
Advantage Theory
Evolution of Competitive Advantage Theory
David Ricardo Comparative
Advantage Theory
Michel Porter ‘s Competitive
Advantage Theory
Absolute Advantage
The principle of absolute advantage refers to the ability of a party (an individual, or firm, or country) to produce more of a good or service than competitors, using the same amount of resources. E.g.:- Unit labor
costs
Britain 10 5
Portugal 5 10
Comparative Advantage.
The law of comparative advantage says that two countries (or other kinds of parties, such as individuals or firms there as) will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods. Even if one country is more efficient in the production of all goods (absolute advantage) than the other, both countries will still gain by trading with each other, as long as they have different relative efficiencies. E.g.
Country Production Before Trade After Trade Wheat Wine Wheat Wine England 8 5 18 0 Portugal 9 6 0 12 Total 17 11 18 12
Fishing, Shelter
constructing, water
carrying, cooking!!!!
Fishing
Competitive Advantage
Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry.
Achieving competitive advantage strengthens and positions a business better within the business environment.
Ways to achieve Sustainable Competitive Advantage
Cost leaders
hip strate
gy
Focus strate
gy
Differentiation
strategy
Model Of Competitive Advantage
Distinctive Competen
cies
Differentiation Advantage.
THANK YOU…………!!!!!!!!!