QUESTION

Marketing and Logistics Assignment

Marketing:

The assignment consists of a role play which mirrors a situation and format of presentation similar to real business situations requiring you to practice skills of data collection, critical analysis, creativity, problem solving and persuasive writing:

You are an international marketing manager in a global soft drinks company which has recently acquired a small entrepreneurial organization that produces smoothies, that is fruit-and-yoghurt- based beverages with superior flavour, nutritional content and unique packaging. It targets a consumer market of younger, health-conscious, up-market consumers.
The product is currently only marketed in the UK. You have been asked to assess the attractiveness of global expansion of this product into the Chinese market. To facilitate the speedy review of business proposal by senior management in your global organisation, you are
required to present your thinking in as brief a form as possible using global marketing plan template (available on Moodle).
Only the data that is researched in order to analyse the opportunities that the target market presents needs to be referenced in consistent Harvard style. For the remainder of the document you are asked to use the definitions of terms provided in the template which are commonly used in business.

Logistics:

Formative Assessment: Reflective Report
The reflective report is to report the engagement progress and what have learnt from the supply chain simulation game. You are asked to summarize your engagement in the simulation game, and to summarize the key points what you have learnt from the simulation game. In the reflective report, you should include as many evidences as possible to reflect your engagement (e.g. graphs, screenshots).
The link for the simulation game is: https://forio.com/simulate/mbean/near-beer-game/run/#p=page0 You are expected to play the game at least twice using different supply chain management strategies to make sure you can do some comparative study in the reflective report. Please make sure you make screenshots and make any possible records of the game, because the website will keep no records of the game.

Research Report
The research report is to analyze the strategies and tools could be used to mitigate the supply chain risks
and uncertainties, and to achieve better supply chain performance. You could use any case material to
support your analysis. The case material could be the simulation game, any cases discussed in class or
you find it interesting in other sources, or any news reported in recent media.
The case material used for this coursework is an opinion article “Going green is not that easy for
electric vehicles”, published on Financial Times. You can find the news on the following link which is
accessible from UoG computers or the library: https://www.ft.com/content/daabb4ad-5766-3c4b-86ca-
2b9c92da4c49 . This material is only a start point for your research, you can find more similar materials
to support your analysis.
In the research report, you need to focus on these two questions. You also need to use reputable
academic sources based on Harvard referencing style to support your analysis.
Questions:
1) What potential challenges/risks should be considered in order to achieve a sustainable and
stable supply chain?
2) What recommendations would you propose to companies if they want to develop a not only
stable but sustainable supply chain?

ANSWER

Marketing

INTERNATIONAL MARKETING PLAN

Executive summery

In the global context, analysis of contemporary business environment in respect to an organization draws a wider knowledge regarding analytical and historical views. This report will shed light upon the strengths and competencies of a small multinational entrepreneur named Purity Soft Drinks and provide the marketing team valuable information regarding the scenario. Globalization is manifested by increasing interaction between people across the world involving the sharing of cultures and ideas as well as goods, services, and investments. In short, globalization points to the entire efforts in making the world global community into one village. It has been observed in this report that food and beverages are the leading sectors in retail marketing especially in UK. SMEs like are consistently gaining popularity among the Europeans and consequently expanding beyond nations. In the context of contemporary business environment, a clear idea has been portrayed in order to carry out business plans accordingly. Along with that, skills, knowledge and experienced and their modification to adapt with ever changing business environment have been highlighted.

Introduction

Business management indicates to the act of getting people altogether in order to fulfil goals and objectives regarding an organisation. Marketing managers develop significant strategies in order to fulfil estimated goals and objectives demanded by international market. Food and beverages are the leading sectors in retail marketing especially in UK. SMEs like are consistently gaining popularity among the Europeans and consequently expanding beyond nations. In the context of contemporary business environment, a clear idea has been portrayed in order to carry out business plans accordingly. Along with that, skills, knowledge and experienced and their modification to adapt with ever changing business environment have been highlighted. In addition, necessary strategies for introduction of products in Chinese market have been assessed in the current study. Hence, the current study not only help in highlighting strengths and competencies of Purity Soft Drinks but also facilitate in imparting a vision to fulfil its goal and objectives to thrive in an unrivalled position in global market.

Findings:

Market environment

PEST Analysis of UK

Political	Stable political background with stable as well as increasing FDI rate of 6% (Gov.uk, 2019). Contemporary corporation tax is 19% (Ons.gov.uk, 2019). On or before 1st half of April corporation tax will be down to 17% (Gov.uk, 2019)
Economical	UK is world 5th largest economy with increasing GDP rate of 1.8% (Clc.gov.uk, 2019). Minimum wage for each individual youth is £7.50 an hour (Clc.gov.uk, 2019). Inflation rate has been elevated to 3.1% in 2018 (Ons.gov.uk, 2018). Consequently, interest rate hiked to 0.5% from 0.25% (Ons.gov.uk, 2018).
Social	Multicultural people Skilled and experienced people Education standard of each civilians is relatively higher.
Technological	Digital technology Strong networking system Strong web based application

Table 1: PEST Analysis of UK

(Source: Influenced by Zajda, 2015, p.92)

External market environment has great influences upon a company. It influences by means of external factor that compels them to adapt their strategies in response to continuously shifting environment. Stable political background along with strong economy has been providing smooth platform for any companies to prosper in United Kingdom (Ons.gov.uk, 2019). Decreasing corporation tax with the aid of increasing FDI rates facilitate in increasing of company’s revenues. Although increasing interest rate resulted in due to the elevated inflation rate has impacted negatively on many companies. It has posed greater threats over the entrepreneur companies prosper. However, rapidly evolving technology has satiated the negative impact on Purity soft Drinks. Technology has facilitated the increase in production as well as compensates market demands (Ons.gov.uk, 2019). In addition with aid of modern transportation technological development has improved distribution time of new products in target market and even in distant parts of the nation. This on one hand resulted in better customer satisfaction and simultaneously increased benefits that eventually increase the revenue of Purity soft Drinks.

SWOT Analysis

Strengths	High brand value Wider variety of products Strong background in global market
Weaknesses	Dependence on retailers Limitable nature of products Limited diversification in business
Opportunities	Business environment to conserve environment Diversify products Market development to increase revenue Sufficient number of youths
Threat	Presence of tough rival companies Limitation of products Increasing popularity in food and beverage industry.

Table 2: SWOT analysis of Purity soft drinks

(Source: influenced by Armstrong et al. 2015, p.123)

Purity soft drinks are comprised of several advantages to penetrate target market is Chinese environment throughout the history of company compared to its rival companies. According to Zadja (2015, p.125), some of the brands are of high standard in consumer’s mind that facilitate Purity soft drinks to overcome its rivalry with other companies. In addition, Purity soft drinks have ranges of products that enhance sales in target market. Furthermore, strong economical support helps Purity soft drinks in competitive marketing strategies in order to increase its revenue (Rowley, 2016, p.559). On the other hand, despite of its strong position in global market weaknesses like lacking of wider variety of products to meet diverse requirements of youth generation of china. Introduction of new food products of relatively higher health benefit and low calorie value helps in attracting more health conscious youths of Chinese market. Diversification of products help in reducing market-based risks as well as lays opportunities for business resilience. Similarly, there remain huge opportunities for more sustainable business launching sustainable and environment-friendly products to attract more environment-friendly consumers. However, presence of strong competitors poses the threat for the company to fall behind in business competition. Along with that, increasing popularity in food and beverage sector inspires many companies to start their in so. In the views of Lovelock et al. (2016, p.247), this makes the job for Purity soft drinks even tougher to thrive in Chinese market. In this scenario, Purity soft drinks need to come up with innovative strategies. In this regard, strong economical background empowers the company to ground themselves firmly in relative market as well as outcome its competitors.

Competitive Review

Presence of strong competitors like Vimto has greatly influenced on fundamental growth of Purity soft Drinks. Both of the companies belong to food and beverage sectors of UK. This results in similarities in product variety as well as similarity in product quality forces consumers to dilemma in distinguishing between products. As opined by Chaffey et al. (2019, p.159), close proximity in product standard has made consistent shifting of consumers towards products of other companies. This resulted in lack of loyal customers. Consequently, the uncertainty in customer resulting in undefined annual sales has gave rise to relatively low stabled revenue. Furthermore, fast food and soft drinks are obtaining enormous popularity among high-living standard and improved metropolitan consumers. This eventually increases the tenacity of new companies to start their business (Culley et al. 2017, p.71). It compels Purity soft drinks too tough rivalry in global market obstructing the high growth rate. This also affects the annual revenue by lowering it. With the aid of analyzing strategy of different competitors such as Vimto and Uniliever, company would be able to make strategic decision based on which business process can be developed.

Positioning

Figure 1: STP Positioning

(Source: influenced by Culley et al. 2017, p.71)

Market Objectives

In order to achieve higher positions in global context marketing team of Purity soft drinks has come up with improved approaches and furnished objectives. In the views of Lovelock et al. (2016, p.249), they changed their strategies to combat with tough competitions posed by exposure to global platform. The desired objectives for Purity Soft Drinks are summarized below-

• To attract more youths of high life-expectancy by providing them with quality products.

• Improve product standard keeping price as low as possible.

• To increase company’s revenue by 10% in 5 years (Puritysoftdrinks.co.uk, 2019).

• Transform their selling method into selling through online portal for faster growth.

Analysis

Marketing Strategy

Marketing managers of Purity soft drinks armoured themselves with excellent marketing strategies to elevate the company’s revenue during the fiscal year. The company have already implemented several strategies in order to compete in global market conditions (Puritysoftdrinks.co.uk, 2019). In the context of globalisation, Purity soft Drinks’ marketing manager holds firm consistency in maintaining product quality while keeping their price as low as possible. This helped in gaining profit by greater margin. Improvement of product quality helped the company to outlast its toughest competitors such as Vimto while keeping the product prices as low as possible. As opined by Gagnon (2016, p.27), this impacted greatly in attainment of more loyal customers by satisfying consumers with high standard product quality.

In addition, Purity soft Drinks’ marketing managers strategize themselves with better promotion methods by changing the way of promotion as well as launching of new products. Utilisation of social media platforms such as personal blogs as well as promoting drinks and fruit juice through commercial websites help the company to reduce their advertising costs low. This facilitates Purity soft drinks to grab benefits by bigger margins in recent years. Automation in production line helps Purity soft drinks to increase their production to compensate ever growing consumer demand. This on one hand, increases product stocks as well as reduces tenacity of consumers to shift toward other companies. Furthermore, to obtain new customers the marketing team incorporated sophisticated as well as furnished technology in selling method. This helps the company to provide products to the distant portions of the nation in order to globalise their products. Innovative ideas like insecurity about product standard and helps in gaining their trust.

Target Market

Usually based on United Kingdom, target market for Purity soft drinks is the south-east Asian continent especially Chinese market. China, being world’s biggest democracy holds sufficient number of youths. This allures the marketing team of Purity soft drinks to eye on relatively tougher Chinese market. According to Zadja (2015, p.125), Instead of tough competitions posed by existent SMEs in China, changing lifestyles of Chinese youths and affinity to become prone to western culture help Purity soft drinks to fix their target on relatively younger, up-market consumers. Furthermore, inspiring consumers to provide feedback helps the marketing team to keep an eye on their service quality as well as adjust their strategies according to contemporary market demand. These techniques facilitate Purity Soft Drinks to better products’ quality and ultimately leading to better consumer satisfaction. This effort cumulatively benefits Purity soft drinks by elevating the company’s brand value as well as increase their revenue and to expand their business worldwide (Kenny et al. 2016, p.237).

[Refer to appendix]

Product

Purity soft drinks wants to introduce variations in their product ranges and at the same time launch new products like blackberry jams and mixed fruit jams. Along with that, marketing team of the company wishes to introduce health- friendly products like green tea and other health related diet products. Product is well-assured regarding their quality and is as per standard health regulations. Launching new products not only helps to satiate market demand but also helps in retaining of existing one. In addition, introduction of variants in forms of different flavour and volume lays opportunities to the consumers to purchase according to their need. Similarly, introduction of diet products and abiding food safety acts helps company to attract more health-conscious and nature-aware consumers as well as maintain their brand value. This provides strong background of introduction to new countries for Purity soft drinks.

Pricing

Key for success in global market is keeping the price of products as low as possible without compromising with product quality. Managers of Purity soft drinks strictly follow basic principles like this. Availability of products with high standards while keeping price of products with broader margin ensures shifting of consumers from other companies to Purity soft drinks. The company is comprised of dependable suppliers and also maintains good relationship with them to avail raw materials at a minimal cost as well as keeps the supply chain available to avoid scarcity. This makes it easier for the company to maintain production value as low as possible and simultaneously keep profitable sales’ margin. Eventually Purity Soft Drinks becomes able to fulfil their goals and objectives and provide quality services for better customer satisfaction.

Promotion

Familiarity of products in retails market heavily depends on its stakeholders. On one hand, better product knowledge helps internal stakeholders well aware about products and also helps in better representation to the customers. Marketing team of Purity soft drinks ensures through workshops and frequent training that its representatives are well aware of its products. In order to obtain better familiarity Purity soft drinks relies on promotion through platforms like social media and personal blogs as well as promote its products through commercial websites. According to Zadja (2015, p.125), this helps in reaching to more target consumers than other conventional mode of promotion like promotion through televisions, newspapers and bills, hoardings. In addition, the company tries to increasing product sales by offering discount and offer during festive seasons and occasions. Furthermore, ensuring product quality not only helps in customer satisfaction but also increases recommendation of its products to new consumers.

Place

Purity soft drinks have specifically targeted consumer market of younger, health-conscious civilians of china. Health conscious youths of china are keen to maintain low calorie diet such as soft-drinks and baked light foods. To maintain healthy body stature they tend to diet products like green tea. According to Kenny et al. (2016, p.237), fast food and soft drinks are gaining popularity in youths due to its relatively low calorie and health friendly effects. Being of low nutritional value and simultaneously hygienic facilitate the products to gain popularity among youths. These foods are also easier to avail and are budget-friendly. In short, Purity soft drinks strategized themselves to target young generations of China who are health-conscious, aware of hygiene and keen to maintain physical fitness (Rowley, 2016, p.253).

Recommendation

Specific	To produce innovative products such as fruit juice
Measurable	It can be measured by observing performance of employees It can be measured by observing overall sales volume
Attainable	It can be attained by providing training to employees It can be attained by incorporating innovation and creativity in the production process
Realistic	It is realistic as it assists in increasing number of targeted customers
Time	2 months

Table 3: SMART Recommendation

(Source: influenced by Kenny et al. 2016, p.237)

Specific	Incorporation of automation system for production and digitization of sales method.
Measurable	It can be measured by monitoring the skills and knowledge of employees It can be measured by keeping track of sales within a deadline
Attainable	It can be attained by providing frequent training to employees It can be attained by more investment in development of technologies and recruitment of capable employees
Realistic	It is realistic as it helps in expansion of the company in global market as well as keeps service available to increasing market demands.
Time	2 months

Table 4: SMART Recommendation

(Source: influenced by Kenny et al. 2016, p.237)

Conclusion

Thus, it can be concluded that in order to make a footprint in global market marketing team of Purity soft drinks need to develop their strengths and improve their competencies. In the scenario of global market, analysis of situations in the company’s own country provides a mere introduction of wider aspect like global platform. Purity soft drinks need to develop creative and realistic strategies to combat with tough roadblocks faced in obtaining desired goals and objectives. Purity soft drinks need to overcome issues like product quality, price of products and employee knowledge of their products and turn them into strengths. In this context, the company need to realign and reconstruct its strategies according to the target market- the youths of China. This factor cumulatively will increase Purity soft drinks’ prosper and thriving to unrivalled level in ever growing sector of food industry as well as business process.

References

Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., (2015). Marketing: an introduction.

Bala, M. and Verma, M.D., (2018). A Critical Review of Digital Marketing. Journal Homepage: http://www. ijmra. us, 8(10).

Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., (2016). Hospitality marketing. Routledge.

Boyce, W., 2016. 626-W17 Global Marketing.

Chaffey, D. and Ellis-Chadwick, F., (2019). Digital marketing. Pearson UK.

Chernev, A., (2015). The marketing plan handbook. Cerebellum Press.

Clc.gov.uk (2019), Minimum Wages, available from: https://clc.gov.uk/clc/min-wages, [Accessed on: 14/03/2019]

Culley, B., Graham, J., Kay, G., Norberry, J. and Wilson, S., (2017). Digital Marketing Plan: Naked Wines Australia. Newcastle Business School Student Journal, 1(1), pp.68-89.

da Silva, E.C. and Las Casas, A.L., (2017). Sports Marketing Plan: An Alternative Framework for Sports Club. International Journal of Marketing Studies, 9(4), pp.15-28.

Gagnon, E., (2016). The Marketer’s Action Plan (MAP): Six Steps to Developing Effective Marketing Plans in B2B Marketing Programs. International Management Review, 12(2), p.56.

Gov.uk (2019), Corporation Tax rates, available from: https://www.gov.uk/government/publications/rates-and-allowances-corporation-tax/rates-and-allowances-corporation-tax [Accessed on: 14/03/2019]

Kenny, B. and Dyson, K., (2016). Marketing in small businesses. Routledge.

Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., (2015). Marketing. Pearson Higher Education AU.

Legislation.gov.uk (2019), Employment Rights Act 1996, available from: https://www.legislation.gov.uk/ukpga/1996/18/contents, [Accessed on: 14/03/2019]

Legislation.gov.uk (2019), Equality Act 2010, available from: https://www.legislation.gov.uk/ukpga/2010/15/contents, [Accessed on: 14/03/2019]

Lovelock, C. and Patterson, P., (2015). Services marketing. Pearson Australia.

Ons.gov.uk (2018), Inflation and price indices, available from: https://www.ons.gov.uk/economy/inflationandpriceindices, [Accessed on: 14/03/2019]

Ons.gov.uk (2019), Overview of the UK population: March 2017, available from: https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/articles/overviewoftheukpopulation/mar2017, [Accessed on: 14/03/2019]

Ons.gov.uk (2019), UK foreign direct investment, trends and analysis: January 2018, available from: https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/ukforeigndirectinvestmenttrendsandanalysis/january2018 [Accessed on: 14/03/2019]

Puritysoftdrinks.co.uk (2019). Delicious soft drinks, bursting with real fruit

Rowley, J., (2016). Information marketing. Routledge.

Schultz, D.E., (2017). International marketing communication as the global marketing change agent. Strategic International Marketing: An Advanced Perspective, p.117.

SINCE 1892, available from: https://www.puritysoftdrinks.co.uk/ [Accessed on: 14/03/2019]

Zajda, J. ed., (2015). Second international handbook on globalisation, education and policy research. Springer.

Appendix: 4Ps of Marketing Mix

(Source: https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSWGMr5ni2EfiOmVxDbz8qR5jaeYzMSR)

Logistics

E-LOGISTICS AND   INTERNATIONAL SUPPLY CHAIN

Executive summary

This report sheds light on the importance of e-logistic in supply chain. Additionally the influencing factors, which are responsible to maintain a sustainable supply chain between the distributors and consumers has been discussed as well. It has been observed in this report that numerous organizations in UK also use e-vehicles for and collecting raw materials and distributing manufactured foods to the market. This report concludes that that supply chain network and logistics are more or less of closer proximity and even interchangeable in some circumstances. If logistics refers to the procedure of accumulation, storage and dispatching of supply materials then supply chain indicates the fruitfulness of entire procedure.

Introduction

E-Logistic is a strong internet based technology, accepted by a company to ensure an effective and careful storage and supply of products. It works towards making a careful transportation of products from the manufacturing point to the consumption destination.  E-logistic service is a part of supply chain, which refers to the process of connecting suppliers to the customers in an effective and organized way. Before the invention of e-logistic, it was difficult to for the distributors to know about the damages of their products. In the next part of the report a brief discussion has been made on the importance of e-logistic in supply chain. Along with that light will be shown on the influencing factors, which are responsible to maintain a sustainable supply chain between the distributors and consumers.

2. Findings

2.1 Significance of supply chain network and logistics

E-logistic refers to the internet based strategy, accepted by the companies across the world in order to ensure a careful supply of the products of a company to its destination (Ab Talib et al. 2014, p.29). Supply chain management is an integral part of any organisation, which looks after the careful and on time delivery of its products to customers. Now a day most of the companies use e-logistic management to maintain an effective supply of its products to the customers. However, it has become more difficult to ensuing high rate if productions for electric vehicles. Proper supply chain management helps the company to achieve profit and sustain its leading position in the market. This is because of providing advantages to the company a careful storage of its soft drink products and maintaining quality of product. With the aid of providing good quality and safety products to large number of targeted customer organisations are getting benefitted from rate of earning profit and reduced operation cost. As mentioned by Ab Talib and Hamid (2014, p.25), increased supply of qualitative fruit juices also increases number of customers, which brings reduction in the prices of products. Most organizations in UK have also accepted Warehouse Management System which enables them to gain profit. This software enables company to have an eye on storage of goods and products until their distribution (Hsu et al. 2016, p.97).

2.2 Influencing factors to maintain sustainable supply chain network

Sustainable supply chain is mainly an effort to maintain environment friendly products, which also save costs and increase productivity (Basheer et al. 2019, p. 286).  There are many factors, which are responsible to maintain a sustainable supply chain such as mapping of supply chain community, capacity building programs and performance improvement. By using chemical free raw materials, company manufactures products that reduce the harm to environment. Numerous organizations in UK also use e-vehicles for and collecting raw materials and distributing manufactured foods to the market (Ft.com, 2018). Its qualitative and natural fruit products attract customers towards it. It increases the demand of its products. It accepts e-logistic process for ensures a careful and effective storage and supply of the products, which benefits the company.

Mapping of supply chain

Organizations also aim to maintain a sustainable supply chain by using environment friendly raw materials for their product which reduces price of products as well. In order to maintain the sustainability of its supply chain they use e- vehicles to transport its juices to consumption destination. It reduces the risk of damage to the products and also saves environment from getting polluted.

Develop training and capacity building programmers

By providing employees training and organizing capacity building programmed for them, company can enable them to understand how to work without creating any harm to environment and products. This also contributes in making company environment friendly and thus more approaching to the customers (Basheer et al. 2019, p.279).

Communication Expression

Focusing on sustainability of supply chain is important for a company, as it helps it to connect to its customers.  The company shares with its suppliers and customers regarding the materials used in the products.

Join industry collaboration

In order to solve complex supply chain challenges, many companies collaborate with others. The collaboration help peer companies to share similar supply chains and maintain sustainability. Join industry collaboration helps in ensuring supply chain management as under this factor though or more than two autonomous firm joints hand to work together. This ensures in better ex4eqution of the operations of supply chain. The substantial benefits of supply chain can be mentioned through join industry collaboration.

2.3 Risks and challenges in supply chain network

Gradually supply chain network is becoming more complex with passing of days. This complex business processes to manage their supply chain. Although there remain inherent threats, these threats pose greater threat to business industry. Hence business organisations are reluctant to remain aware of these hidden risks and strategize accordingly. In this study two types of supply chain risks namely external risk as well as internal risks are summarized below-

Rapidly changing markets

Globalisation and technology rapidly affects customer behaviour through social and cultural as well as psychological factors. First of all, fast changing market demands leads to relatively shorter life span of a certain product. Marketing companies must ensure to remain compatible with latest trends as well as compensate it by innovating new products. In addition, they also need to keep an eye realizing the fact that trends are of shorter life span and therefore need to avoid over investment in a particular product. This refers to the development of stretchable supply chain network (Harrison and Van Hoek, 2008). Secondly, up gradation of features are very much essential with the introduction of new products. Finally companies need to have the capability of predicting market trends and customer needs.

Environmental risks

External risks environmental risks whether it is social, economical and political or climate climatic factors. Social factors in forms of differences between culture and society obstacles the smooth flow of supply chain by means of communication barriers. Climate factors in forms of heavy rainfall or snowfall, natural disasters can obstruct distant supply chain for days. Economical and governmental factors like increase in tax rates, royalty rates and share values can alter the availability of raw supplies (Mangan, Lalwani and Lalwani, 2016). As seen in the case study European auto companies are facing difficulties in changing over to electric vehicles. As the European policy “French government’s surrender on diesel taxes makes the situation hard. In addition, multiplication of royalty charges on cobalt ores in Democratic Republic of Congo makes the situation even worse.

Cyber risks

Arrival of new technologies changed the trend of industries into globalisation. Manufacturing and supply chain information are stored on databases by companies for smooth operations of business processes. Breach in these databases or stealing of these data can compel entire interlinked supply chain network to drastic failure (Chaffey, 2009). Hence, resistance to cyber attacks as well as sacredness of data are of high demand regarding these supply chain processes.

Apart from above cited risk factors, there remains external factors like deficiency in supplied materials, management instability of an enterprise and internal factors like manufacturing disputes, improper planning and concealment of organisational competencies from its members can lead to supply chain obstruction (Christopher, 2005).

2.4 Interrelation between supply chain network and logistics

Supply chain network and logistics are two of the interchangeable terms. Although on apparent view, there seem no real differences between these two, there remain few differences between them. Supply chain management integrates the field of logistics where logistics refers to the numerous sub processes within supply chain management. On one hand, supply chain management refers to the concept of interlinking of different processes to attain competitive advantage in the run (Kalakota and Robinson, 2001). On another hand, logistics exemplifies more than one processes regarding acquiring of supplies, their storage and flow as well as information regarding relevant supplies of those materials altogether within overall supply chain.

In this context, as highlighted in the case study of environment friendly initiative taken by European organisation for the manufacturing of electric vehicles proves an excellent example. Due to limited abundance of cobalt ores pressurises companies like Umicore to seek sub-situation for that material. Shortage of cobalt increases and search for nickel becomes more relevant (Sadler, 2007). Substitution in forms of introduction of Asian battery cell to mitigate scarcity of supply chain also gets increased consideration. Hence, a clear interrelatedness between supply chain management and logistics comes out. Availability of cobalt decreases leading to shortage of acquiring and storage of it and affects the supplies. These in turn affects the entire network by hampering smooth flow of cobalt ores.

Analysis

3.1 Reasons of rising risks related to supply chain network

Supply chain works effectively in stable environment. Vulnerable environments like disruption due to economic cycles as well as consumer demands along with manmade and natural disasters can be drastic to supply chain. These vulnerabilities can arise from three reasons that has been mentioned below-

Labour uncertainty

Organisational risk may give rise to uncertainties of labour due to deficiency in workers, IT system failure leading to the complete failure of an organisation. Bankruptcy is also one of the main reasons for rising of organisational risk (Fitzsimmons, Fitzsimmons and Bordoloi, 2008).

Human error or natural calamity

Environmental risks whether arising from human source or natural causes poses potent threat to supply chain network. Natural disasters like earthquakes, storms as well as hurricanes delay or even failure of supplies (Waters, 2011). In the global market context, political instability or terrorism may lead to failure of supply chains.

Communication gap

Finally breakdown of supply chain may also rise from network issues. Networks arise from the interaction between, firms and suppliers. Issues in this regard may form due to the communication gap or misunderstanding between organisations.

However, domestic or global supply chains, both of them are of equal threat to miscarriage of supply chains. The above mentioned organisational, environmental and network-related supply chain issues are relevant for all sorts of industries. This indicates the vulnerability of global supply chains to these risk factors because as distance increases supply chain get more branched and interlinked.

3.2 The way of affecting issues on supply chain network

Issues of supply chain network may arise in forms of uncertainty of availability of materials. Scarcity over shortage of raw materials can lead to fallback of schedule by months or even years, in worst case scenario, companies are compelled to change their decision on production of certain products. In addition, unfavourable environment laid by external factors like political forces and governments can increase the inabilities regarding supply of goods and services as seen in the case study.

In the case study “The way of affecting issues on supply chain network” provides supportive evidence regarding the effect of issues on supply chain network (Ft.com, 2018). First of all, multiplication of royalties on cobalt export by the government of Republic of Congo increases the import cost for the European companies. This in turn increases the production cost of electric vehicle and even makes it uncertain of production process by decades. Even the company are forced to seek for substitutes in forms of Asian battery cells. Hence it can be stated that, issues rising due to shortage of supply chain shuts production of electric vehicles for long time.

3.3 Impact of different supply chain issues on operation process of company

Operational processes of a company may become delayed for days or even years in an organisation. As opined by Ahmi et al. (2018), tax evasion and unfavourable business environment laid by local partied or governments can obstruct construction of certain product. Along with that, lack of availability of raw materials can alter the definition of operational processes either by finding solutions in forms of substitutes or even by introduction of new processes. A relevant illustration has been imparted beneath (Dubey et al. 2018).

Supply chain issues can affect the operational processes of an organisation in many ways. The case study “The way of affecting issues on supply chain network” provides supportive evidence regarding the effect of issues on supply chain network. Enterprises like Umicore are forced to find alternative substitute of cobalt. The production of electric vehicles became uncertain due to the Multiplication of royalties on cobalt export by the government of republic of Congo. The situation gets even worse due to the shortage of cobalt ores. Even the company are forced to seek for substitutes in forms of Asian battery cells. Thus, issues like increased taxes as well as scarcity of supply chain of cobalt compelled European motor vehicles come such as Umicore to alter of even shut the production of electric vehicles out.

4. Recommendation for sustainable supply chain

Mapping of supply chain

Most of the companies lack basic comprehensive knowledge of sustainable supply chain. At the earliest of developing an effective and reliable supply chain is based on the fact that, companies need to strategize them by identifying obstacles both internal as well as external. In the views of Genovese et al. (2017), obstacles like social and environmental challenges need to be assessed and organisation are needed to give efforts to combat with those challenges and overcome them. According to Pettit et al. (2016), the process includes evaluation of relevance particular products relevant to the contemporary trends of high recommendation. Furthermore, techniques like production procedure, required tools and training, communication with both the members of organisation as well as suppliers to avoid misunderstanding or communication gap during the entire process need to be summarised and evaluated (McCormack et al. 2016). In this context, a universal code of conduct regarding the entire process helps in premeditated formulation of strategies to improve competencies is essential.

Improved communication

Communication is very important in terms of supportive supplies. Supply chain becomes more diversified as well as complicated with increasing distances between suppliers and production site. In this context, communication is essential for shipment of materials ans similarly important during their receiving (Jabbour et al. 2016). In addition, communication is required for the schedules delivery of a particular material to navigate its appropriate direction (Ross, 2016). Furthermore, lack of communication can alter the schedule as well as availability of particular material. As opined by Dubey et al. (2018) , in terms of unavailability of certain material can be substituted with subsidiary material to avoid shut down of production which is solely possible through proper communication. In the case study the shortage of cobalt forced Umicore to find substitutes in forms of nickel.

Training to develop increased capacity

In the context of sustainable development of supply chain is very important. Numerous external resources need to be tailored in development of supply chain. One of the effective ways to establish improved capacity for an organisation refers to the utilisation of knowledge throughout the supply chain in order to leverage case studies as well as best practices for improvement in supply processes. In this context, programs like vendor conference, campaigns regarding contemporary market situation and training of employees to improved knowledge about the practices are relevant. Showcasing of facts regarding success of suppliers and organisations not only facilitate in development of better strategies but also help in motivating themselves for better outcome.

Drive improved performance

As soon as basic performance level is assessed, audit program can facilitate the measurement of performance standard as well improve performances. As opine by Jabbour et al. (2016) self-assessment helps in improving own performance level through measuring the competencies of an organisation. In contrast, outside audits help in enlighten of practical as well as behavioural challenges along with opportunities are easier to assess. Furthermore, incentive programs in association with audits and assessment can be a useful tool to improve individual as well as organisational performances (McCormack et al. 2016).

Improved flexibility

Business market environment is dynamic and ever changing. Market demands leads to relatively shorter life span of a certain product. Marketing companies need to ensure remaining compatible with latest trends as well as compensate it by innovating new products. In addition, they also need to keep an eye realizing the fact that trends are of shorter life span and therefore need to avoid over investment in a particular product. This refers to the development of flexible supply chain network. This on one hand reduces the chance for failure of a particular product. On other hand, if, in case an organisation fails to become compatible to the market demands, low investment reduces chances of bankruptcy regarding an organisation (McCormack et al. 2016).

Industrial collaboration

As supply change process extends it gets complicated. In this regard, individual organisational approach is deemed as insufficient. Collaborative approaches not only improve strengths but also help in improve competencies. According to McCormack et al. (2016), companies can strengthen their performances with closer observation of other company’s p[performances. Companies can even learn from the mistakes of other companies of more or less close proximity and avoid those mistakes in facing similar situations. This reduces chances of failure while increases .individual as well as collaborative organisational performances.

Conclusion

Finally, it can be concluded that supply chain network and logistics are more or less of closer proximity and even interchangeable in some circumstances. If logistics refers to the procedure of accumulation, storage and despatching of supply materials then supply chain indicates the fruitfulness of entire procedure. Challenges like shifting market trend, environmental disturbances as well as threats posed by cyber crime hampers production in many ways. It not only portrays roadblocks to smooth operational processes of an organisation but also reduces the frequencies of that encounter. Reasons like miscommunication and uncertainty of supplies and labour are extracted as factor that catalyses the rate of inefficiency. Furthermore, flexibility in organisational processes, building of strong networks as well as industrial collaborative approaches has been portrayed. These suggestions help in development of better strategies for improved outcome as well as improvement in competencies. It can be stated that, on one hand the current study helped in development of knowledge regarding supply chain and logistics. Further analysis drawled companies to focus on their weakest points to improve both domestic level and global performance. These not only helped in development of a sustainable process of development but also unveiled new possibilities that should facilitate thriving of an organisation.

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Appendix: Supply chain management

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