Reference no: EM132227100
Competitive Advantage and Globalization
Fortune 500 companies need to remain competitive in the global marketplace to retain their top standings. With all other companies benchmarking against these giants, they need to remain flexible and act on each opportunity to maintain their reputation and profitability as industry leaders. One such method is to utilize a resource – based theory in their supply chain management.
There are multiple resources that come into play when examining which location can give an organization an advantage over its competitors. Organizations need to find locations domestically or through globalization that supports raw materials, infrastructure, skilled workers, lesser governmental restrictions or taxes, and supplier longevity and accessibility. In addition, availability of technological resources can be an advantage for large organizations. For example, the business systems that allow for remote access, better inventory management, and just in time manufacturing can reduce overhead costs significantly. Some companies that are profiting from these technologies are Walmart through their supply chain management system and Toyota having improved efficiency with lean manufacturing strategies (Barney, 2012, para. 12).
When evaluating global strategies and determining the steps to establish a reliable and diversified supply chain, or any other business operations undertaking, it is critical to apply project management principles. Effective project management will allow for adequate human, technological, and financial resources and a project management plan against which time, cost, and performance can be measured to ensure that no elements are forgotten or budgets veer far off track before attempting to realign and determine if adjustment of the plan is necessary. Following project management principles are especially pertinent when the project is related to a global diversity. It allows for the project manager to be aware of the specialized knowledge and skill of team members, but also any obstacles that can be mitigated. For example, the location, religion, or culture of some team members may reduce their availability for task completion. Scheduling can be effected by “the difference in work days and holidays in different countries” (Russel, 2017, p. 369). By structuring tasks and responsibilities using common project management practices, the necessary time frame to complete a task can be determined well in advance and any team member attendance conflicts and be accounted for and tasks can be delegated.