Required: Solutions + Recommendations.

Required: Each solution or recommendation shall demonstrate knowledge and practical application of global supply chain topics and concepts covered thus far in the course.

Required: Each solution or recommendation shall be something that the relevant Company can do

In this chapter we have built on the growing literature on international supply chain management, and specifically focused on three key areas of global production, global sourcing, and global distribution in supply chain management. We examined these areas of international supply chains, which we believe are interlinked, within three separate case- studies; Samsung's global production, UK Airbus's global sourcing, and Tesco's global distribution. The overall results show a link between the three areas, and highlight the importance of a holistic approach to international supply chain management.

The result of our research-based case studies revealed that in global production Samsungs choice of location for investment lends support for the eclectic paradigm, also known as OLI model, a key theory of firms internationalization developed. Samsung have tended to engage in foreign direct investment which have specific locational advantages, including low wages, favourable geographic positions and special tariffs. In this way Samsung have combined two different motives for firm internationalization, efficiency seeking and market seeking, which would not have been possible using forms of operation such as licensing.

The findings from Tesco also lend support to the eclectic paradigm, suggesting that firms are able to be successful when they exploit specific opportunities wherever they are located in the world, and that it isn't necessarily advantageous to seek to enter culturally or geographically proximate markets in the early stages of internationalization. However, a point which is raised here is the importance of customizing the product offering and use of distribution channels which appeal to local tastes, a factor which Samsung have not had to take into consideration in the configuration of their global production network.

Whilst Samsung have tended to keep production in-house, and to be involved with the manufacture of a variety of different components used in the production of smart phones, the case of Airbus demonstrates how outsourcing can be successfully used in order to build competitive advantage in the aerospace industry. However, it can be seen that Airbus outsource in order to focus on their core competences, and to ensure the supply of technologically advanced components meeting high specifications, and therefore prefer to use a limited number of Tier 1 suppliers in order to achieve this. Meanwhile Airbus uses multiple sourcing strategy for outsourcing spare parts of the aircraft which is not required specific engineering design.

Furthermore, the Airbus case highlights the importance of risk management in global supply chains, as the company is aware of concerns relating to intellectual property rights, and also working with suppliers which also supply competitors such as Boeing. Returning to the Samsung case, it can be seen how Samsung were able to exploit a similar scenario to their own advantage, as after supplying displays to Apple for the iPhone, they were able to then use this knowledge in order to use these components in their own smartphones, suggesting that Airbus are wise to be wary of such a scenario.

We can also observe that Tesco share concerns regarding the protection of intellectual property rights when working with local partner organizations, as exemplified by their seeming reluctance to launch Clubcard straight away when operating in a new market.

The fact that all three case organizations have demonstrated examples of benefits and challenges posed by knowledge sharing with partners in the supply chain suggests that the question of knowledge sharing and intellectual property rights is indeed a major challenge which organizations with international supply chains must face, regardless of the industry in which they are operating, and therefore highlight the necessity for mutual trust in international supply chains.

Despite this, the third case study which focused on Tesco demonstrated the importance of collaboration in global supply chains, in the case in order to access local market knowledge and appropriate distribution channels. Whilst both the literature and indeed the previous two cases highlight the dangers of collaborative working, the case of Tesco demonstrates how such an approach can be used successfully in order to build competitive advantage. This approach is likely to be particularly relevant for multinationals who are using a multi-domestic strategy in order to overcome the liability of foreignness which does not appear to be the case for Samsung or Airbus.

Finally, the Tesco case highlights the influential role of national culture in international supply chain management, particularly in downstream relations. Although cultural challenges were not raised in the cases of Airbus and Samsung, this may be because for these organizations we have considered upstream activities, and therefore through the governance mechanisms used, these organizations have been able to mitigate some of the cultural challenges posed.

The experience of Tesco in the US however, demonstrates that regardless of a firm's previous international experience, when looking to sell to consumers, not giving sufficient consideration to cultural differences, even in markets which are culturally close to the home market can be a serious flaw in downstream operations., Therefore, we suggest that not only should appropriate consideration of this topic be a key challenge for managers, but also requires greater empirical investigation within the supply chain literature, particularly following an emic approach to culture, which has traditionally been overlooked in favour of eclectic models on the occasions that culture has been considered in the international supply chain management literature.

In conclusion, the three cases that we have selected have demonstrated a range of issues which are features of international, rather than purely domestic, supply chains. We have demonstrated how three leading international organizations cope with such challenges and the benefits and risks of the strategies that they have adopted in order to deal with them, and in doing so, have highlighted the importance of strategic fit between the global strategy of the organization, and the range of local environments in which international supply chains operate.

Our research reveals a couple of limitations. The research aimed at theory building but the findings from case studies are only able to lend support or disapprove existing theories rather than to create a new theory. We conducted research of the three case firms on three different

angles and three firms case were selected from three different industries. These prevented us from conducting comparative case analysis to provide more generalizations from research findings. Further research can be done on a sample of firms in the same industry. The primary data collected from interviews is limited and does not reflect wide range of thought. We could not conduct interviews with a wider range of the companies representative. Due to business confidentiality, a number of managers to whom we approached for interview refused to participate. Further research should address this issue by creating better networking with international businessmen.