Chapter 1: Introduction
This chapter discusses about the general agenda of research involved. 1.1 gives an outline about the background of the research. Section 1.2 will state about the objectives of the research. Section 1.3 will state about the scope involved and section 1.4 will present a structure of the dissertation and some brief summary of each chapter. In this section the reader would gain a bird's eye image on what the research is about.Background of Research
The supply chain for the future is not to wait and react as the traditional way but the attitude is "drive fast". Because of the demands, new technologies and new capabilities the vision on supply chain needs to be a more monitored and a smarter supply chain is what the world is looking for. After globalization the world has become a single unified market and the needs for trading is effectively high with more collaboration strategy. Due to globalization the recession which started in United States in financial crisis 2007-2009, it had spread across the world because of the inter dependence in global economy which resulted in a major downturn. According to IMF (international Monetary Fund), an economic growth of less than 3% or less is considered to be as a global recession. The recession has hit almost every country across the globe and after experiencing the tough time each one of them wants to self sustain in their internal economy.
Because of the outsourcing mostly the products across countries away from Europe, It has been become in a format that we have disabled in some fields for the future. Either we would be transferring our industries to make as foreign direct investment in other nations or we would be making products based on our requirements in their specialized fields which would be in more dependent criteria as which can't be produced in house. Manufacturing companies and the business nowadays is going down and they are forced to think for a new way to compete and to produce products in cost effective manner and more customer oriented. The survival had become an important issue for the industries along with competition. Now it has an impact on the unemployment as because of companies started to move their new units in other countries because of cheap labor and availability of resources. Which in turn is a huge lose for the country and for the future as it would be affecting the countries growth as a whole.
There are number of other strategies that have made the companies to go for a change in supply chain to get rid of various issues they experienced in the past. The mobile industry such as Nokia produces mobiles with various advance technologies and manufacture across the globe. The theft in the technology and the innovations of it has lead the local Asian market for an availability a far cheaper mobile with all the technologies of Nokia in local brand names. This makes the original manufacturer a vulnerable market and looses the value for product. Similarly, the Hongqi HQD is the car model which was released by manufacturer of china which is as same as Rolls Royce Phantom model. In automobile sector, Daewoo Matiz vs Chery QQ, Vauxhall Frontera vs Landwind, Honda CRV vs Laibao SRV, Mercedes C vs Geely Merrie 300, Neoplan Starliner vs Zonda A9 (Bus Model), Smart vs er. Chinese Smart, Toyota Prado vs Dadi Shuttle, Nissan XTrail vs Greatwall Sing, BMW 7 vs BYD F6 are the very interesting copied models far across every company of the world's luxurious cars been produced in China in a large scale industries with conveniently a lower price. The interesting news is all that these cars are not only look alike the same in appearance and aesthetic, but also the performance and quality records is being similar to the original ones. The international court which handles these cases results in vain for the car manufacturers as the design produced has some variation than the copyrighted original ones. It crosses from automobiles, electronics, computers, pharma industries, telecom industries, electrical items, aerospace etc. The original origin company loses a very high investment in research and development to produce a new product and the rate of return for them takes ages than the actual predicted period. Shutting down or transferring the production plant has also become a part for industries. For example, Vestas, a wind power manufacturing unit has built a new wind turbine production plant in China due to the local market demand and thereby keeping business profitable.
The purpose and motivation for me to study in this topic is because I had been studying the various reasons behind the problems that the companies faced during recession and hard to survive criteria with more problems leaving them to bankruptcy. Even the giant manufacturers in automobiles such as General motors, Ford etc, were one of the victims who were about to face the bankruptcy. The other reasons includes the design theft, information leakage, irresponsive supply chain strategy, poor visibility in supply chain, vendor management, gap between supplier and customer etc are the other threatening factors what the traders face.
Objective of Research
Scope of Research
Structure of thesis