Global Market Forces Essay

Global Market Forces
No matter how grand the business strategy, if the manufacturer can't meet the demand, it's game over. When a manufacturer chooses to take part in global financing activities, they take on the extra risk as well as opportunities that come along with it. Foreign exchange risk and political risk are the primary risks that are associated with businesses engaging in international finance. Risks such as these make it difficult to maintain continuous and consistent revenue.
Risks
Imagine a company with the greatest team in planning it will still face the substantial risks of being global. Every great company will engage in some kind risk we do this because without some risk will be no reward. But taking too much risk can direct a company into business failure. An excellent example of this would be investing in a company that has bad reviews. It's like going to a diner for dinner and hating the service and the food but still investing in that business to deliver food to your customers. Risk management allows stability between taking risks and reducing them. Successful risk management can add great value to any business. Particularly, those companies, which work in the stocks industry, rely intensely on planned risk management as the groundwork that allows them to endure market crashes. A valuable risk management framework seeks to defend an organization's capital base and earnings without impeding its expansion. In addition, investors are more eager to engage in companies with outstanding risk management practices. These ideas result in exceptional lower loan costs, better access to capital for the market and improved long-term performance.
Development Chain
In the last few years, fast global expansion of businesses has led to a complex, multitiered supplier network. Think about how this applies to online shopping. Why would my customer need to travel to Italy for the best oils when they can order online and have them shipped directly to their home. Today, the company that wants to stay ahead will need to place more focus on improved supplier relations and customer satisfaction. If the shipping company that works for your company doesn't pack your products correctly and they break when delivered you will lose customers. But if you have outstanding workmanship in your shipper this can lead to an efficient product flow and the manufacturability of product designs while increasing production across the supply chain. The Leadership of these companies that aren't on their game in these three areas will find themselves on the wrong side of the island of the money train. Building an operational plan that reflects a company's overall business strategy helps drive operational excellence and enables the production of quality products at the lowest cost per value. Supply Chain Management is the oversight and analysis of materials, information, and finances as they move from supplier to manufacturer to the customer (Olson, 2011). Involves coordinating and integrating these flows both within and among companies with the delivery of product, from raw material to finished product (Schechter, 2002).