Answer To: MAN304_T2_2020_Assessment_3 Page 1 XXXXXXXXXXKaplan Business School Assessment Outline Assessment 3...
Ishika answered on Oct 04 2021
Running head: ANALYSIS
ANALYSIS
Risk, resilience, and rebalancing in global value chains
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Risk, resilience, and rebalancing in global value chains
1. Introduction
Companies are prone to potential threats, losses, and vulnerabilities from the outer environment and therefore need to implement resilience strategies to recover from risks and rebalance the destroyed internal peace. In international business, the support of value chains keeps growing in length and complexity to suggest improvements. Over the past two decades, the global turnover regarding the number of traded goods has tripled to more than $10 trillion annually. Businesses managed to keep this number up by using different manufacturing models that helped them improve parameters like on-time delivery, inventories, and shorter lead times.
Case Study Overview
While other issues an international business faces include the distribution issues, social and labor issues, meeting ethical needs are a priority. Companies operating models often lead to unintended consequences exposed to risk. They have some potholes, including a lack of transparency and resilience despite cost efficiency and production. This report focuses on those issues in businesses in the current situation.
Scope and Purpose
The scope of the report is to examine the issues faced by the businesses in the time of pandemic, especially with respect to marketing and value chain. The impact of unanticipated disruptions on Social Responsibility and its impact on ethical behavior has also been discussed.
2. Theory Identification
International companies implement theories to achieve and ensure smooth working and operations in various factors and dimensions. These theories include governance in all sites, economic policies, languages, and diversity, labor standards, living standards, environmental standards, local and corporate culture, import-export regulations, tariffs, trade agreements, legal systems, so on.
They contribute to both the business and the country in economic terms. Different business theories are as follows:
· Mercantilism
· Absolute Advantage
· Comparative Advantage
· Heckscher-Ohlin Theory
· Porter Diamond Theory
When an incident occurs, businesses focus on the most suitable theory to manage risk, resilience and rebalance it to a prior state of working. These incidents or shocks broadly classified into four categories-
Unanticipated catastrophes, foreseeable catastrophes, unanticipated disruptions, and foreseeable disruptions.
Catastrophes indicate a huge loss in trillions of dollars. It can be foreseeable and last longer depending upon the signs and probability. Others, on the other hand, can be unanticipated. Disruptions do not cause huge losses as compared to catastrophes and are less likely to affect the economic toll similarly (Solaz, 2018). But they can be costly and serious. For example, data and security breaches, disruptions, and cyber-attacks are disruptions.
Some international businesses with an origin in a particular country enjoy the benefit of government regulations to fit into national interests. Such companies follow the Mercantilism theory that limits imports and maximizes export (Gereffi and Luo, 2015). But, excess export does not support the balance in the business and, an argument stated that it does not promote national growth.
3. Application of the theory:
a. Reshaping Value Chain
While the...