International Business Competency of Kenwood Limited
SITUATION
In the last two years a particular challenge in international business has been the problems arising within the supply chains around the world of physical goods.
The allocated industry below is the section assigned to you :-
4) Household electrical goods manufacturers & retailers : Kenwood Limited
TASK
This assignment requires you to consider supply chains in the industry allocated to you and for a company that you choose within that industry. (Kenwood Limited)
1. What have been the changes in the supply chain situation in the last 5 years for the industry allocated to you - this information will largely be found in news media. For a company that you choose in that industry depict the global value chain diagrammatically with brief accompanying commentary. In which geography are inputs obtained?, where are customers based geographically?, what intermediate geographies are involved between source and customer?, and what forms of infrastructure (transportation/logistics, technology, etc) are used? (500 words limit)
2. Analyse the variables that have caused the changes in the supply chain discussed in (1) above – these might include, but are not limited to, Covid 19, technology, climate change, Brexit, etc. (500 words limit)
3. Use Porter’s ‘Diamond of National Competitive Advantage’ to evaluate the different dimensions influencing the global supply chain changes discussed in 1 & 2, together with the impact on the various stakeholders’ perceptions of ‘value’. (500 words limit)
4. Conclude by critically reflecting on the future supply chain in the industry you have considered - will it return to historical conditions, persist as it is now, or evolve further - and why? (500 words limit)
The report should have FOUR sections each of roughly equal word count.
Total word count 2000 words (2200 words including 10% allowance).
Bibliography of references and Appendices are excluded from this count.
As a minimum, include 10 sources (academic journals, and reputable news/trade publications).
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Intl Business Competency
Question 1
The industry for household electrical goods manufacturers and retailers has had significant changes in the supply chain situation over the last five years. The leading causes for such changes are technology and consumer preferences. This industry is highly competitive, and consumers seek a supplier that would deliver their products within the shortest time possible (Bressanelli et al., 2020). Therefore, the companies operating in this industry have to create effective supply chains to reach the consumer quickly. These companies have established ways of getting their raw materials on time from the supplier. Once the raw materials have been delivered on time, the companies would have enough time to make good quality products for the end consumer (Kwak, Seo, and Mason, 2018). Given the high level of competition in this industry. Con summers are seeking to buy good quality kitchen electronics that would serve them for long. Therefore, companies utilize the latest technologies to create the ideal products for their consumers. It has helped in reducing the numb er of returned goods, which could negatively affect consumer satisfaction. When goods are returned to the company, the consumer might experience delays getting the right product (Behnke and Janssen, 2020). Therefore, companies in this industry focus on quality products to avoid such delays.
The global value chain for Kenwood Limited
Kenwood Limited obtains its inputs from the U.K. The company is located in Hampshire and utilizes raw materials from the U.K. to make high-quality products for the consumer. The company had trusted suppliers supplying it with the raw materials required in many different kitchen appliances. Given the changing consumer needs, Kenwood ensures the best quality raw materials to ensure the end quality serves the consumer for many years.
Kenwood Limited customers are located in different parts of the world. When the company was launched, it used to supply kitchen appliances to people living in the U.K. However, after a substantial expansion, the company began to give Europe its kitchen appliances. Currently, these products are being supplied in different parts of the world. As a result, Kenwood has become one of the highly recognized brands for kitchen appliances. This company has a strong brand all over the world because its supply chain is global. Customers from different parts of the world help market the company, thus contributing to its brand fame.
Kenwood Limited has various intermitted geographies to ensure that the end products reach people from different parts of the world. These intermediaries are currently located in most countries around the globe. Retailers from other parts of the world import the company's products to sell them to local consumers. An example of the intermediaries that make the goods available to consumers are supermarkets and electronic stores. Stores such as Walmart have their branches in different parts of the world stocked with kitchen appliances from Kenwood Limited.
The central infrastructure involved in ensuring the goods is available to end consumers are transport and technology. Given that the products are manufactured in the U.K., consumers and retailers have to import them. The goods are then transported by air, road, or water, depending on their destination. Technology is also used in tracking the items while on transit to ensure that they are delivered as expected. The retailers can identify any delays and take action before the delay affects customer satisfaction through the tracking process (Tong et al., 2019). Therefore, technology plays a vital role in ensuring that the intermediaries deliver the goods to consumers as expected.
Question 2
Various variables have contributed to the changes in supply chains in the household electrical goods manufacturers and retailers' industry. Among such variables are technology, COVID 19, climate change, Brexit, and consumer demands. Technology is one of the factors that have brought considerable changes in the supply chain of this industry. Through technology, companies can order raw materials online and deliver them faster than in the absence of technology. Technological changes have enhanced the supply chain communication process, making it easy for companies to avoid delays. When a company is experiencing delays in delivering raw materials, its manufacturing process can be slowed down, thus negatively affecting consumer satisfaction. Therefore, technology has enhanced consumer satisfaction by eliminating delays caused by slow or poor communication channels. Technology also makes it easy for consumers to order goods online and track the location of these goods before being delivered. Therefore, It has changed the supply chain because companies have to enhance their efficacy in delivering goods to consumers.
The COVID 19 has also contributed to the changes in the supply chain by making it challenging to deliver goods in certain countries across the world. Some countries were paced under total lockdown, which means that sellers could not enter these countries to sell their products. As a result, many retailers were required to adopt new supply chain strategies to ensure that goods reached the expected destinations on time (Bonadio et al., 2021). The pandemic also made the physical delivery of goods nearly impossible because people were required to keep their distance. Given that the disease's spread rate has reduced, supply chains have become more flexible (Ivanov, 2020). It has allowed manufacturers to transport goods to different parts of the world without facing any restrictions.
Climate change has also contributed to the changes in supply chains because it makes it challenging to predict weather changes. Some extreme weather conditions such as hurricanes make it challenging for companies to deliver their products to the affected areas. Before climate change, predictions would be made to determine when to deliver goods in specific areas and when to wait for reliable weather. Given that climate change has made it challenging to predict whether the supply chain faces a lot of uncertainties. Under such apprehensions, companies experience losses from damaged goods and a high consumer dissatisfaction rate due to delivery delays (Ghadge, Wurtmann and Seuring, 2020). In addition, the unpredictable and adverse weather conditions make it challenging to deliver to certain parts of the world and could reduce a company's brand awareness. Therefore, supply chains have to change to facilitate a high consumer satisfaction rate.
Brexit, also known as Britain's exit from the European Nations, has highly affected supply chains. The action has affected the trade patterns that the U.K. had with other European nations members. Therefore, companies operating in this nation would have to look for new trade partners to ensure their products reach other parts of the world (Sampson, 2017). The market share for Kenwood Limited might be negatively affected by Brexit. It means that the company would look for other means of compensating the losses, and this can be best done by making changes in the supply chain.
Consumer demands also affect supply chains because they determine the number of goods that need to be transported to a particular area. For example, if a specific area has a high demand for kitchen appliances, companies will change their supply chains to ensure more products are sent to specific locations. If the consumer demand is not met on time, the consumers might ...