OMGT2246 mandatory assignment good A2 PDF

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A mandatory assignment full and complete also got a decent grade for it. all done according to rubrics and marking criteria....

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RMIT Classification: Trusted

COVER SHEET COURSE CODE:

OMGT2246

COURSE DESCRIPTION:

Global Trade Operations

EXAM DATE:

19th April 2021

EXAM START TIME:

10:00AM SGT

EXAM DURATION: TOTAL number of pages (incl. this cover sheet)

2.30 HOURS (15 MINS READING & 15 MINS DOWNLOADING/UPLOADING) 9

INSTRUCTIONS TO CANDIDATES 1. 2. 3.

4.

You need to answer all the questions in this document and upload this document at the end of the exam via Canvas. Use following guidelines to save the answer word file: RMIT ID_Last name_course code. Example: s3346452_Yadlapalli_OMGT2246 Your submission will go through Turnitin to check similarity. RMIT University believe in Academic Integrity and take any Academic Misconduct very seriously, so DO NOT copy from any source or from others. The submission link will remain active from 10:00am until 12:30pm SGT. After this time, the submission link will be blocked, and you will NOT be ALLOWED to submit your document.

5. Please take your online exam in a quiet room where you can be uninterrupted for the entire duration of the exam.

6.

7.

Prior to the exam, please check that your INTERNET access and computer are working well. This exam paper contains : Refer to instructions in each

8.

section. This exam paper is worth

of the total marks

allocated in this course.

OMGT2246 Final Exam (SIM), Sem 1, 2021

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RMIT Classification: Trusted

OMGT2246 Final Exam (SIM), Sem 1, 2021

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RMIT Classification: Trusted

PART A (30 Marks) Answer all the questions in this part. Each question is worth 5 marks making a total of 30 marks for Part A. QUESTION ONE. ‘Just-in-Time’ (JIT) has undeniable efficiencies but, in a time of crisis it has left us woefully exposed. Describe JIT and the role of JIT inventory in post COVID-19 ANSWER for QUESTION ONE: Type your answer here (your answer may exceed one page) Answer 1 Just-in-time (JIT) systems are based on the principle of reducing inventory holding costs by making goods arrive at a manufacturing plant just in time to join the production phase, rather than before. Reduced warehousing and inventory keeping costs result in significant cost reductions with JIT systems. JIT systems may assist the company in identifying faulty parts and removing them from the manufacturing process to generate the best quality product. A JIT scheme, on the other hand, leaves the company with no inventory buffer to meet unforeseen demand or supply shifts. The COVID-19 pandemic has had an effect on the global supply chain, and not just brick-andmortar stores are feeling the heat; e-commerce behemoths are also having trouble keeping up with the demand. Government restrictions and the lockdown scenario caused a disturbance in the supply chain, and supplies of goods were initially disrupted. Owing to the closing of manufacturing facilities for an extended period of time, the supply side of the retailers who were onboard was gradually affected. Then a new set of problems arose, this time involving the prices of commodities that were in high demand during the pandemic. The company's JIT inventory planning policy is being made more difficult by the imposition of a lockdown and restrictions on the flow of products. The majority of the time, the company is unable to reach the delivery deadline, product costs are rising, and a growing number of consumers are disappointed. Forecast failures have made aggregate planning more difficult.

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RMIT Classification: Trusted QUESTION TWO. How should an Australian or New Zealand firm that currently exports to ASEAN countries respond to the creation of a single market in this regional grouping? ANSWER for QUESTION TWO: Type your answer here (your answer may exceed one page) Answer 2 Since the ASEAN nations are merging into a single free trade zone, businesses should concentrate production in the ASEAN nation that is better suited for it, rather than creating several self-sufficient production centres in the new free trade zone. In centralised and standardised production in a single location, differences in competitive, cultural, and consumer preferences can cause problems. Consumers could prefer different types, making standardisation less feasible than the company had expected. Due to existing fixed assets in some countries, the organisation does not want to abandon them in favour of a focus factory in one country. To avoid being at a competitive disadvantage due to trade barriers, a US-based firm that only exports to ASEAN nations can either lobby for lower tariffs between the US and the ASEAN nations it exports to or move output to an ASEAN nation.

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RMIT Classification: Trusted

QUESTION THREE. How does 3D printing affect international business activity? ANSWER for QUESTION THREE: Type your answer here (your answer may exceed one page) 3D printing, also known as additive manufacturing, is a process that involves applying a very thin layer of material to a three-dimensional digital model to produce physical artefacts, eventually lowering the cost by eliminating waste. This is in stark contrast to the new manufacturing process, which retains up to 90% of the initial bundles of wearable material. The first 3D printers were launched nearly 30 years ago, despite the fact that we prefer to think of it as a modern technology. Issues like durability, speed, and intellectual property rights have kept 3D printing from going into production so far. The market, on the other hand, is rapidly expanding, and it will only be a matter of time before we see how it will have a major effect on the global supply chain. The 3D printing industry is expected to have a major impact on the global economy. Things will not be the same; the advancement of 3D printing will cause huge disturbances. As more businesses incorporate this technology into product creation, products can become less expensive to produce and more customer focused. The United States alone has seen exponential growth in 3D printing technology, and Europe and even China are not far behind. China has now surpassed the United States as the world's largest manufacturer. Manufacturing would become more localised with the use of 3D printing systems, giving China a competitive advantage in domestic production. We will not be able to see the true consequences of how this will affect China's economy before China adopts technology and makes it its own.

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RMIT Classification: Trusted QUESTION FOUR. If a firm is changing its strategy from an international to a transnational strategy, what are the most important challenges it is likely to face in implementing this change? How can the firm overcome these challenges? ANSWER for QUESTION FOUR: Type your answer here (your answer may exceed one page) Answer Four If a firm is changing its strategy from international to a transnational strategy, the most important challenges it is likely to face in implementing this change are often related to control, as the company transitions from a partial dependence on production measures and bureaucratic methods to one that will necessitate numerous formal and informal controls and integration mechanisms. With transnational strategies, significant output ambiguities are possible. A strong community and several integrating processes are one way to solve these issues. For example, the enterprises overcoming the complex challenges of a transnational strategy are GM, ABB, Caterpillar and Ford.

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RMIT Classification: Trusted QUESTION FIVE. Certain aspects of the product life cycle concept have no place in the globalised

world. Discuss what you understand of this statement. ANSWER for QUESTION FIVE: Type your answer here (your answer may exceed one page) The product life-cycle theory, proposed by Raymond Vernon, suggested that as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade: •

the size and wealth of the U.S. market gave U.S. firms a strong incentive to develop new products.

•

initially, the product would be produced and sold in the U.S.

•

later, as demand grew in other developed countries, U.S. firms would begin to export.

•

over time, demand for the new product would grow in other advanced countries making it worthwhile for foreign producers to begin producing for their home markets.

But the increasing globalisation and integration of the world economy has made this theory less valid in today's world.

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RMIT Classification: Trusted

QUESTION SIX. How can a company make strategic use of countertrade schemes as a marketing weapon to generate export revenues? What are the risks associated with pursuing such a strategy? ANSWER for QUESTION SIX: Type your answer here (your answer may exceed one page) Answer 6 Countertrade is an alternative method for arranging a global deal when traditional methods of instalment are difficult, expensive, or non-existent. China, India, and other developing countries sometimes demand a particular measure of countertrade because their governments have laws or currency controls that promote or warrant countertrade. Many countries do not have the requisite foreign currency reserves to pay for imports. As a result, a company that engages in countertrade has a strategic advantage over one that does not do business in these countries. The exporting business must accept or purchase raw materials, products, or other items from the importer or the importer's country. After that, the exporter must find a buyer for the products. Due to a lack of demand, poor quality of the products, lack of experience selling said goods, or other factors, the exporter may be unable to sell them at the expected price. Further risks Associated with countertrade are: 

Danger of removal



Offer of merchandise at not exactly full worth



Removal of imports may require assets other than those that the firm has



Might include the trading of unusable or low quality merchandise that the firm can't discard productively

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PART B (20 Marks) Answer all the questions in this part. Each question is worth 10 marks making a total of 20 marks for Part B. QUESTION ONE. A medical device company is considering how best to supply the world market with medical devices such as ventilators used to treat patients suffering from conditions including pneumonia, brain injury and stroke. A manufacturing plant costs approximately A$2 billion to construct and requires a skilled workforce. The total value of the world market for this product over the next 5 years is estimated to be between A$100 billion and A$200 billion range. The tariffs prevailing in this industry are currently low. Should the firm favour concentrated manufacturing or decentralised manufacturing? Discuss at least five factors that assist the firm to make this decision. ANSWER for QUESTION ONE: Type your answer here (your answer may exceed one page) Answer 1 A medical technology corporation is pondering how to better supply the global market with medical devices like ventilators, which are used to treat patients with conditions like pneumonia, brain damage, and stoke. Construction of a manufacturing plant costs about A$2 million and needs a lower-skilled workforce. The global demand for this commodity is expected to be worth between A$100 billion and A$200 billion over the next five years. Tariffs in this industry are currently low; thus, the company should favour concentrated manufacturing. The following are the five considerations that help the company make this decision: 1) Trade Barriers – Since the trade barriers for medical goods are minimal, the business may concentrate production in a single region that better meets the needs of the other. There's no point in searching for several plants to stop paying high tariffs. 2) Location externalities- There is an expectation of high quality in medical products manufacturing. So, the location should have access to skilled labour and good supporting industries. Also, as quality is involved, a centralised production approach will all be the same. 3) Fixed Costs- The high fixed cost of setting the production plants is a good factor that favours concentrated manufacturing. Having multiple plants will only increase the cost of production and there will be a loss in the economies of scale. 4) Value to Weight ratio - The devices such as ventilators are extremely expensive that have high value. They also have higher value to weight ratio. Thus, it is very practical to have a centralised plant and produce the item and then ship to the rest of the world. 5) Universal Consumption- Medical appliances have usage all over the globe. All nations need ventilators in their hospitals and thus there is a lower local responsiveness. As there is no customisation required, therefore centralised production can be acquired.

QUESTION TWO. A sourcing strategy is essentially a business case for an organisation to determine an optimal approach to procure resources. AusMed which manufactures medical ventilators, wants to procure

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RMIT Classification: Trusted a heating tube which is a critical component of humidification equipment. In comparison to the value of the ventilator, the heating tube cost less. Outline the steps involved in the sourcing the heating tube? Discuss what sourcing strategy that AusMed needs to adopt while procuring heating tube? ANSWER for QUESTION TWO: Type your answer here (your answer may exceed one page)

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