-A focal firm is
the initiator of an international business transaction that conceives, designs
, and produces the offerings for customers worldwide.
When talking about a focal firm the suppliers are located?
Figure 1.8 shows two simplified maps. Consider the following as you read a supply chain map: You begin with the “focal firm”—that is, the company in the middle.
Suppliers are on the left and customers are on the right
.
What is mean by focal firm?
Focal companies are those companies “that usually (1)
rule or govern the supply chain
, (2) provide the direct contact to the customer, and (3) design the product or service offered”.
What is the process view of supply chain?
Cycle
View
The processes in a supply chain are divided into a series of cycle, each performed at the interface between two successive stages of a supply chain. Cycle view of Supply chain process includes, Customer order cycle. Replenishment cycle.
Who are the participants in international business?
- The focal firm o Initiator of IB transactions, including MNEs and SMEs.
- Distribution channel intermediary o Specialist firm providing logistics and marketing services in the international supply chain.
What are third tier suppliers?
Tier 3 suppliers or partners are
one step further removed from a final product
and typically work in raw materials. Once again, following our apparel company example: The Tier 3 supplier here is the farm that sells cotton to the fabric mill.
Which tier in a supply chain network does a focal firm have direct contact or transactions with?
First-tier suppliers
are the focal firm’s direct suppliers. 2nd-tier suppliers are the focal firm’s suppliers’ direct suppliers.
What are second and third tier suppliers?
Whereas Tier 1 suppliers supply parts directly to OEMs, Tier 2 suppliers do not sell directly to OEMs; parts from these suppliers make their way into the final product via Tier 1 suppliers. And Tier 3 suppliers, finally,
provide parts to Tier
2 suppliers.
What are the stages of supply chain?
- Stage 1: Supply Management. The most basic stage, built around an internal MRP system that is lead-time driven. …
- Stage 2: Supply Chain Management. …
- Stage 3: Supply Chain Integration. …
- Stage 4: Demand-Supply Network Collaboration.
What are the 5 basic steps of supply chain management?
The Top-level of this model has five different processes which are also known as components of Supply Chain Management –
Plan, Source, Make, Deliver and Return
. Let’s deep dive into each component: Plan: Planning is imperative to control inventory and manufacturing processes.
What are the three main components of choosing a supplier?
When it comes to choosing suppliers, procurement departments rely on a number of qualitative, quantitative, subjective and objective criteria. Since 1991, Weber & Al. have identified three main criteria:
price, delivery and quality
.
What is a focal firm in international business?
Project-Based Collaborative Venture: Focal firm
collaborates with foreign partners on a project with a relatively narrow scope and a well-defined timetable
, without creating a new legal entity. Firms often form project-based ventures to share the cost and risks involved in knowledge-intensive R&D projects.
Why do firms internationalize?
In general, companies go international
because they want to grow or expand operations
. The benefits of entering international markets include generating more revenue, competing for new sales, investment opportunities, diversifying, reducing costs and recruiting new talent.
What is the importance of international business?
International business also
increases competition in domestic markets and introduces new opportunities to foreign markets
. Global competition encourages companies to become more innovative and efficient in their use of resources. For consumers, international business introduces them to a variety of goods and services.
What are Tier 1 Tier 2 and Tier 3 suppliers?
- TIER 1: They are the first level suppliers. …
- TIER 2: Manufacturers of systems, subsystems and completely finished components to facilitate it to TIER 1 companies or vehicle manufacturers.
- TIER 3: Creation of semi-finished products or raw materials.
Is Tier 1 GOOD OR BAD?
Tier 1
credit is considered the best
, and will generally qualify you for the most favorable loan terms.
