Describe at least two factors that indicate how the global economy can affect value chains and business processes.
The two factors that suggest the effect on the global economy affect the current value chain and business processes are been discussed. The aspects of the EU and China’s supply and operations are very eminent in this process and value chains with the global economies are visible in such a report.
The COVID 19 pandemic: Such pandemic started in
one part of the globe and then generated the needful supply chain
effect which made the virus go global. The supply chain in these
conditions depended on the Chinese supply which was cheap but has
quality issues. The pandemic would stop the supply chain flow and
thus affect the economy of the nations that are dependent on the
Chinese goods for the next processes ahead. Hence when the Global
economy is registering its protest on Chinese goods, the supply
chain has to shift from one to another which may have a temporary
rise in the value chain but is well settled in the long run.
The rise of Cost: The rise of cost for one economy
makes the supply chain look for the resource elsewhere which makes
the product value-added for the consumers to have. The break in the
pandemic times shows the cost difference where the business would
go in for the value that suites its ways for which it may need to
develop long term relations to cut off the threat and thus the cost
chain in the process. The cost may be high for the small-term but
the long term has the advantages of such a shift from one to
another due to the need for it and the best way of the consumer to
business relations.
The business processes have to cooperate with the rise of cost if
possible or make the needful decision of changing the source. The
way the suppliers are using manpower and safety in the workplace
makes the business process generate new ways for the business.
Describe at least two factors that indicate how the global economy can affect value chains and...
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