Global Branding and Organizations
Pros
Branding provides an opportunity to reach new groups of consumers.
An efficient strategy promotes brand awareness which, in turn, can
help achieve superior profits.
In combination with an appropriate pricing strategy, branding can
support the realization of a product as an asset and contribute to
the growth of brand equity. The more valuable the brand or the firm
will be, the greater barriers to market entry for new competitors it
will create. It means that branding is essential to gaining a
leadership position.
Cons
With the increase in brand awareness at the global scale, the number
of cheap and illegitimate product substitutes grows proportionally
(with approximately 1-to-8 ratio). These fake brands take a
significant share of profits and jeopardize the integrity of genuine
brands.
Sometimes the outcomes of branding may be counterproductive −
customers become more and more suspicious of big brands as they
impact the local environments forcing “a grey cultural homogeneity
on the world” (“The Case of Brands”). As a result, consumers may
prefer smaller brands over the global ones.
Global Branding and Customers
Pros
Since branding implies the development of customer loyalty and
trust, by purchasing goods produced by famous brands, potential
consumers can obtain such values as quality.
Global branding provides more consumer choice options and, in this
way, allows potential consumers to fulfill a plethora of their needs
and interests.
Cons
The adverse effects of globalization accelerated by branding include
ecological deterioration, inability to sustain in the market for local
small businesses, promotion of cultural homogeneity, informational
pollution, etc.
Brands tend to sell “superior lifestyles” along with their physical
goods (“The Case of Brands”). When brands play on the psycho-
emotional needs of customers, sometimes they tend to buy
unnecessary items.
Discussion
Brand image is more than just a complex of logos, color solutions,
and labels. The brand is also a message conveyed to consumers. It
comprises both tangible and intangible values. Therefore, the
influence of the brand on a person is tremendous. Moreover, the very
fact of buying a particular product often demonstrates what
interests and qualities the buyer may have because every purchase
can be regarded as an act of self-identification.
Thus, if branding is carried out correctly, the influence of the brand
on consumers may be powerful. For companies, branding can help gain
such advantages as increased brand awareness and greater customer
loyalty which, in turn, can result in better financial performance.
Moreover, branding is core to successful international market entry.
Efficient branding (i.e., product localization, etc.) can help a firm to
address the needs of local consumers much better and reduce the
risks associated with entering new markets. However, along with
raising brand awareness, companies may contribute to the
development of counterfeiting and piracy.
The illegitimate goods are always produced as replicas of the most
successful premium products. Since the fake items are cheaper, they
attract the lower-income buyers who cannot afford the genuine
goods. As a result, the brands suffer losses in terms of finances and
brand value as well.
When speaking of consumers, the major advantages of branding they
receive include the opportunity to purchase products of higher
quality. Global trade largely contributed to product diversification
in most parts of the world, and now consumers can find a brand that
meets their peculiar interests based on the price, authenticity,
exclusiveness, etc. However, from another point of view, global
branding does not allow local firms to succeed as it is hard for them
to compete with international giants.
Other adverse effects of branding are associated with globalization
and international trade as such. They are environmental
deterioration, human rights’ abuse, unfair business practices, etc.
which negatively influence the social welfare. Moreover, to increase
product demand, marketers identify the emotional and psychological
needs (e.g., self-enhancement, etc.) of potential consumers and
develop images which, as they suppose, may promote the desired
purchasing behavior. In a way, the given approach is unethical.
Supply chain
management
What Does Supply Chain Management Mean?
Supply Chain Management (SCM) is the handling of the flow of goods
and services from the raw manufacturing of the product through to
the consumption by the consumer. This process requires an
organisation to have a network of suppliers (that serve as links in
the chain) to move the product through each stage.
Why Is Supply Chain Management Important?
Effective Supply Chain Management improves the financial position of
an organisation by delivering value linked to the organisations
corporate strategy. Supply Chain Management plays a significant
role in customer satisfaction through the delivery of products and
services. Good supply chain management is critical at reducing
operating costs from Procurement activities, through operations and
logistics functions and throughout the whole supply chain. The scale
of profitability for large organisations is relative to the
management of an organisations supply chain.
Supply Chain Management also has a lesser publicised societal role –
ensuring that the basics necessities humans depend on like, food,
energy, medicine and modern infrastructure are flowing and
available.
What Are the 6 Components of Supply Chain Management?
Planning – Make vs buy decision to understand whether you will
manufacturer or buy domestically or internationally.
Sourcing - Identifying, evaluating and building relationships with
suppliers that will provide goods and services
Demand/Inventory - Managing inventory and manufacturing schedules
to meet consumer demand.
Production - Ensuring the right volumes and quality of production.
Warehouse & Transportation - Storing and delivering the product
effectively.
Return of Goods - Ensuring an effective returns process for customer
satisfaction.
These six components enable to you provide effective Supply Chain
Management.
CIPS Knowledge-related topics, best practice guides and white papers
include: Guidance to support the development of organisations supply
chain activities, from setting strategy through to operational
developments, supporting organisations to build efficiencies into
their supply chains to develop supply chains of the future
5 Parts of SCM
In SCM, the supply chain manager coordinates the logistics of all
aspects of the supply chain which consists of five parts:
The plan or strategy
The source (of raw materials or services)
Manufacturing (focused on productivity and efficiency)
Delivery and logistics
The return system (for defective or unwanted products)
The supply chain manager tries to minimize shortages and keep costs
down. The job is not only about logistics and purchasing inventory.
According to Salary.com, supply chain managers “oversee and manage
overall supply chain and logistic operations to maximize efficiency
and minimize the cost of organization's supply chain."1
Productivity and efficiency improvements can go straight to the
bottom line of a company. Good supply chain management keeps
companies out of the headlines and away from expensive recalls and
lawsuits.
SCM vs. Supply Chains
A supply chain is the network of individuals, companies, resources,
activities, and technologies used to make and sell a product or
service. A supply chain starts with the delivery of raw materials
from a supplier to a manufacturer and ends with the delivery of the
finished product or service to the end consumer.
SCM oversees each touchpoint of a company's product or service, from
initial creation to the final sale. With so many places along the
supply chain that can add value through efficiencies or lose value
through increased expenses, proper SCM can increase revenues,
decrease costs, and impact a company's bottom line.
Example of SCM
Understanding the importance of SCM to its business, Walgreens
Boots Alliance Inc. decided to transform its supply chain by investing
in technology to streamline the entire process. For several years the
company has been investing and revamping its supply chain
management process. Walgreens was able to use big data to help
improve its forecasting capabilities and better manage the sales and
inventory management processes.2
This includes the 2019 addition of its first-ever Chief Supply Chain
Officer, Colin Nelson. His role is to boost customer satisfaction as the
company increases its digital presence. Beyond that, in 2021, it
announced it would be offering free two-hour, same-day delivery for
24,000 products in its stores.
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