Hyundai's Decision to Location & Supply Networks

Project Report from the year 2013 in the subject Business economics - Supply, Production, Logistics, grade: C+, University of Bedfordshire, course: MSc INTERNATIONAL BUSINESS & MANAGEMENT, language: English, abstract: This Applied Management Project is written on the concepts of Supply Network and Location. The scope of this report is broad as it would intend to accomplish its objectives with four different case studies. It is obvious that there is no operation in the world that exist in isolation. Each operation is seems to be an integral part of large and relatively interconnected network of various operations. This factor is known as Supply Network which involves two major stakeholders (Suppliers and Customers). The perspective of Supply Network refers to be as a concept of settling all given operations in a context by which it allows the company to interact with its suppliers and customers. It has been determined that of all aspects (Input Material, Raw Material, Other Information and even Individuals within an enterprise flow within the organisational network of customers-suppliers relationships build through all of the given operations. This concept assists company in understanding and realising its competitiveness within the specified industry. Major disadvantage of this concept of Supply Network is that it implied an organisation to create intimacy with few suppliers and it has been examined that this would be resulted in strengthening the company's suppliers bargaining power as the switching cost would get increase. Specifically, there are two stimuli (supply-side factors and demand side factors) that frequently intend organisations in changing their existing locations. This stimulus of relocating (supply-side factors) is more related with the changes in term of available resources or in term of direct or indirect cost. Whereas, the other stimulus (demand side factors) is more focused on the convenience of company's customers. Additionally, there are five contemporary practices (Reconfiguration, Disintermediation, Co-opetition, Insourcing and Outsourcing) that could be adopted for the configuring of supply network. It has been recommended that the concept of Supply Network is of great worth specifically in companies' operations. The companies that recognised and realised its importance have been managed to outsmart its rival by offering innovative products or through the creative approach of selling. Therefore the aspect of location decision is important in relation to the exploration and evaluation of predictable outcome of specified operations. [...]