Managing Integrated Global Supply Chains Essay Example | Topics and Well Written Essays - 3000 words

Managing Integrated Global Supply Chains - Essay role modelAcomb Tyres is by definition of the European Commission (2003) a medium draw inprise because its turnover is less than 50 million and it employs less than 250 people. To put our study into context we need to understand issues that affect an SME enterprise when it attempts to internationalise. there have been many studies done on challenges of internationalising SMEs. We shall go over these challenges for Acomb Tyres to clearly understand what the issues are and whence go on to show how internationalisation can be achieved at a lower risk.Szabo (2002) of the joined Nations Economic Commission for Europe (UNECE) identifies five critical success agents (csf) for SMEs that internationalise. The first factor is managerial skills. The focal point style and skills required in managing an international entity are different from a national operating entity. It is those SMEs that modernise and apply the right kind of managerial skills that survive. Structured approach to management is very important and this entails a degree of formalisation of management processes. Szabo (2002) observes that SMEs that succeedhave a well-structured management, which concentrates on core activities.The third factor is to link up with appropriate partners and/or agents in the foodstuff. The presence of a topical anesthetic agent or partner is indispensable in navigating the unfamiliar waters of the new market. The ever present threat of hurtful debts can be ameliorated by linking with a knowledgeable local partner who can screen take out suspect customers. Sometimes governments provide incentives to companies that can be accessed by companies who are using a local partner. A local partner can share the risk with the internationalising SME.The fourth factor is technical top executive and knowledge. Foreign markets may have standards that are different from the SMEs home market. Equipment may need to be informed to meet specified national standards and in the process the product may have to be modified. The final factor is the ability to respond quickly and decisively to enter a market. Decisions to enter a market should be made and acted upon on time. Opportunities do not last only those enterprises that seize opportunities stand to gain.Acomb Tyres eyeshade well on most of these critical factors. The area that needs attention concerns the issue of management. The company result have to train its managers for international business operations. In fact to strengthen management recruitment of handy international managers is required. The business planning needs to be more structured than it is now. A clear put down long term strategic plan needs to be compiled to guide all the companys activities. How does an SME enterprise enter a external market Liu and Lu (2004) summarise the popular four stage Uppsala model for internationalisation asStage 1 No regular Export activitiesStage 2 Export by i ndependent RepresentativesStage 3 Establishment of foreign satellite affiliatesStage 4 Installation of foreign production facilitiesThis model enables the