GLOBAL BUSINESS MANAGEMENT (Research Paper Sample)

Global Business Management Name Institution 1 Executive Summary This report seeks to address the supply chain analysis for ABB PBS. For an adequate and extensive understanding of this phenomenon, the report uses the Porter's Value Chain Analysis. It commences by looking at the first aspect the Value Chain, primary activities which comprise of inbound logistics, outbound logistics, marketing and sales, strengths and the services of the company. Findings indicate that these aspects of primary activities of the company as valuable. Similarly, the evaluation of the supporting activities of the joint venture that includes procurement, technological development, human resource management and firm's infrastructure portray these activities as being beneficial to the operations of the company. The report focuses on the importance, strengths, and weaknesses of each element of the Porter's Value Chain to arrive at the findings and recommendations. The analysis of the joint venture, reveals that ABB PBS is a potential firm equipped with very many resources but with poor management. Therefore, this report recommends that. First, ABB PBS should treat this venture as a separate entity. Secondly, ABB PBS should employ strong marketing strategies. Finally, the group should improve the welfare of the workers and improve the quality of service business. Table of Contents1 TOC \o "1-3" \h \z \u Executive Summary22 Introduction43 Value Chain Analysis of ABB PBS4 3.1 Primary Activities of ABB PBS 3.1.1 Inbound Logistics5 3.1.2 Outbound Logistics6 3.1.3 Marketing and Sales6 3.1.4 Services7 3.2 Support Activities of ABB PBS 3.2.1 Procurement8 3.2.2 Technology Development8 3.2.3 Human Resource Management9 3.2.4 Firms Infrastructure94 Recommendations95 Conclusion10References11Appendix........................................................................................................................................13 2 Introduction The background of ABB PBS can be traced back in early 1993 when the two companies ABB and PBS met to form a joint venture. ABB share stake in the company was 67 percent while that of the PBS was 33 percent. The joint venture was well known in the Chez Republic as the producer of boilers and turbines for the heating and power plants. This report picks ABB PBS because it offers the best example of the management of the businesses globally. The joint venture shades light to the current businesses on the challenges and opportunities, which are in the global business. This report seeks to investigate the challenges and opportunities in the global business. To effectively understand the situation in the global market the report analyses the strengths and weaknesses of the ABB PBS joint venture using Porter's Value Chain analysis in the following primary areas, including inbound logistics, company operations, outbound logistics and marketing strategy and sales and services. After that, the report scrutinizes the supporting activities of ABB PBS such as procurement, technology, human resource management and the company infrastructure. It is an analytical and a comprehensive report. 3 Value Chain Analysis of ABB PBS According to Porter in his books on Competitive Advantage (1980 and 1985) Value Chain refers to the systematic approach of examining the development of the competitive advantage by the firm to create the best value for the company customers. The significance of the Porter's Value Chain is to look at the business, its competitors and valuable activities within the firm. The illustration of the ABB PBS Value Chain Analysis activities has been provided below. ABB BPS Value Chain Support Activities Firm infrastructure: robust equipment and conducive workplace Human resource management: many high quality employees Technological development: Efficient technology Procurement: not well established Primary Activities Inbound Logistics Sufficient supply Dependable suppliers Operations Sufficient production process Outbound logistics Products readily available to customers Marketing and sales Strong reporting chain Service Non profitable 3.1 Primary Activities of ABB PBS 3.1.1 Inbound Logistics Importance These are activities involving the handling of inputs internally. According to Tunovic, (2003), Inbound Logistics is one of the core activities of the Value Chain and is concerned with the acquisition of raw materials in the company, and inward movement of such materials to partial or finished inventory. ABB PB inbound logistics process enhanced the joint venture purchase and production process as well reduced the shortage of their products in the market. This was in line with Mäe & Ohno (2012) argument that sound inbound logistics improves the overall efficiency of the company. Strength and weakness According to Miemczyk & Hollweg (2004), strengths and weaknesses of the inbound logistics are determined by two primary factors, the number of suppliers the manufacturer has and the distance between the manufacturer and the supplier. The company has had a sufficient number of suppliers who could meet the needs of the venture. Again, the distance between the joint venture and the suppliers was very minimal given the fact that some of the suppliers were the partners in the venture. For example, PBS provided some of the supplies for the firm while ABB provided the robust technology needed to improve the operations of the company. The company was endowed with massive resources starting from technology to the raw materials needed to manufacture turbines, boilers installation of power plants. However, the company is experiencing some weaknesses in internal operations. The technology is not well coordinated to enable the company to improve its internal processes and activities successfully. 3.1.2 Outbound Logistics Importance Kwateng, Manso, & Osei (2014) noted that global competition and challenges have enabled manufacturers to maintain sufficient outbound logistics by improving their warehouse services and distribution chains. Therefore, outbound logistics are very impactful to the satisfaction of the customers, and thus, they should always be on the nerves of the manufacturers. Strength and weakness ABB PBS supported customer satisfaction by availing a variety of products ranging from boilers, turbines and installation of power plants both in the domestic market and in international markets. However, the company has experience weaknesses in the planning of meeting consumer needs successfully. The analysis of the outbound logistics portrays that company lacked an established mechanism that could connect the manufacturer with the customers apart from the marketing department. 3.1.3 Marketing and Sales Importance Marketing activity is the most important aspect of the Potter's Value Chain analysis. This is because the firms encounter competition while selling to customers and also use competition in the market when purchasing from suppliers. CITATION Kan08 \p 15 \l 1033 (Kanneggeisser, 2008, p. 15) This is supported by the fact that marketing provides an avenue that the firm receives its revenue. Marketing links the customers with the company products. It is through marketing that companies can generate revenue. Therefore, it can be argued that marketing is the major source of revenue within the organization. Likewise, Moorman & Rust (1999), argued that the value of marketing is very important and cannot be ignored. Strengths and weaknesses ABB PBS marketing strength was centered at marketing department headed by the vice president. This ensured that all marketing activities are well coordinated. The company focused on geographic regions as marketing territories; the strategy was accompanied by ABB strong selling network. This assisted the joint venture to identify business opportunity in other regions. Similarly, the company controlled seventy percent of the domestic market. However, the company did not carry out adequate marketing research of its products but depended only on the existing marketing structures of the company partners. 3.1.4 Services Importance According to Gronroos (1990), as cited by Gabriel, (2006), service is an activity of intangible nature that comes as a result of interactions between the customer and the service provider. Services are very vital as they offer support to the company products Gabriel, (2006).They create an opportunity for continuing relation between the producer and the customer (reference?). Strengths and Weaknesses According to Gabriel(2006), Porters Value Chain analysis has given service very little attention. Similarly, ABB PBS seems not to put more emphasis on the marketing of its services business. The joint venture established service segment in 1995 to provide services to the customers of turbines, boilers and power plant installation. However, did not perform as it was expected. The failure achieves the desired goals of the service business can be attributed to the low-quality services. 3.2 Support Activities of ABB PBS 3.2.1 Procurement Jeeva and Salem (2014), postulates that both purchasing and physical management of assets are very critical aspects for the manufacturing firms because they ensure that the firm has adequate resources to meet both short term and long term operations requirement. Strengths and Weaknesses Akenroye, Ojo, & Aju(2012), advocated that efficient control of acquisitions, contracts, services and goods require an independent department that cannot be compromised by other activities of the organization. ABB PBS analysis found that the company ha...