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1、AmultinationalcompanymaximizesitscompetitiveadvantagebycontrollingitsownsupplychainIntroductionFirmsthatcontrolandownbusinessesinmorethanonecountryaremultinationalenterprises(MNEs).Thesupplychainmeanstheflowofmaterialsinvolvedinproducingaproductfromstarttofinish.Eachcompo
2、nentofthesupplychainisofgreatimportancetothefutureofthecompanythatusesthesupplychain.Somepeoplethinkthatamultinationalcompanymaximizesitscompetitiveadvantagebycontrollingitsownsupplychain,whileothersdonot.Thisthesiswilldiscussthesecontrastingviewsinanelaborateway,andhelpu
3、sseehowimportantglobalsupplychainmanagementtoMNEsis.Andtheauthorisconvincedthatamultinationalcompanymaximizesitscompetitiveadvantagebycontrollingitsownsupplychain.Firmsthatcontrolandownbusinessesinmorethanonecountryaremultinationalenterprises(MNEs).Locatedinthehomecountry
4、,headquartersorbasefirmistheparentfirmoftheMNE,whichownsoneormoreforeignaffiliates(subsidiariesorbranches)locatedinoneormorehostcountries.Aforeignaffiliatecanobtainfinancingeitherfromitsparentoroutsidelendersandinvestors.Supplychainisthenetworkconsistsofdistributors,retai
5、lers,storagefacilities,transportersandsuppliersthatparticipateintheproduction,sale,anddeliveryofaparticularkindofproduct.Themanagementofsupplychainisofgreatimportancetothesuccessofenterprises,especiallymultinationalones.Manypeopleadvocatethatamultinationalcompanymaximizes
6、itscompetitiveadvantagebycontrollingitsownsupplychain,yetothersarenotconvinced.Movingproductionoperationtoplaceswithhigherproductivitymayaddtotheflexibilityofbusiness,butitalsomakesmanyMNEsvulnerablewhenadversityoccurs.Forexample,manycomputersuppliersoutsourcetheircompone
7、ntmanufacturingtoAsiancountries,wheretechnologyisadvancedandproductivityishigh.AccordingtoAsiaPulse,about50%ofchipproductionand80%personalcomputerrelatedproductsaremadeinSoutheastAsia.ThisbringsrisksofsupplyfailuretotheMNEs.Forinstance,2500peoplediedwhenTaiwanwashitbyahug
8、eearthquakein1999,whichmademanymajorproductssupplybreakoffforaslongasoneweek.The911eventandSARSa
