Global sourcing

Global SourcingRajani Raising.

Roll no 62.Human Resource Mgmt.

Global SourcingGlobal sourcing is a term used to describe practice of sourcing from the global market for global market for goods & service across geo- political boundaries.

Global Sourcin

g

Low- cost skilled labor.

Low- cost raw- material.

Tax breaks & low tariffs.

U.S.A

On- site team

Canada

India

Off- shore Facility

Near- shore FacilityProject mgmt,Client

Interface,Analysis,

Final integration

High- priority,Support

Integration Testing

Programming, Routing Support,

Unit Testing, QA.

Global

Sourcing

Ideal Industries for Global Sourcing

Manufacturing

Skilled Services

Telephone Call centers

Adam Smith Absolute

Advantage Theory

Evolution of Competitive Advantage Theory

David Ricardo Comparative

Advantage Theory

Michel Porter ‘s Competitive

Advantage Theory

Absolute Advantage

The principle of absolute advantage refers to the ability of a party (an individual, or firm, or country) to produce more of a good or service than competitors, using the same amount of resources. E.g.:- Unit labor

costs

Britain 10 5

Portugal 5 10

Comparative Advantage.

The law of comparative advantage says that two countries (or other kinds of parties, such as individuals or firms there as) will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods. Even if one country is more efficient in the production of all goods (absolute advantage) than the other, both countries will still gain by trading with each other, as long as they have different relative efficiencies. E.g.

Country Production Before Trade After Trade Wheat Wine Wheat Wine England 8 5 18 0 Portugal 9 6 0 12 Total 17 11 18 12

Fishing, Shelter

constructing, water

carrying, cooking!!!!

Fishing

Competitive Advantage

Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry.

Achieving competitive advantage strengthens and positions a business better within the business environment.

Ways to achieve Sustainable Competitive Advantage

Cost leaders

hip strate

gy

Focus strate

gy

Differentiation

strategy

Model Of Competitive Advantage

Distinctive Competen

cies

Differentiation Advantage.

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