Global Location Decisions

Unit 9 Assignment: Global Location Decisions

**Please use unit 9 grading rubric attached***

MT433-5: Analyze the role of customers and locations for effective supply chain networks.

Facility and partner location decisions depend on many factors, and customers play a significant role in this evaluation. To establish an effective supply chain network, a company may extend into areas that are closer to its customers, or use a location that provides certain advantages for its customers.

For this assignment, assume that your organization is going to expand globally and is evaluating locations to establish a new presence. If you cannot use your organization, use another whose supply chain you can research.

Describe what your organization does and how it serves its customers. Then describe what this “extension” would be. Depending on your organization and industry, this may be a supplier, distribution arm, remote branch, etc. You may choose any type of an establishment as long as it makes sense as a global extension.

Search the Internet for the latest “Global Competitiveness Report” by the World Economic Forum. Using the tools on the website select two countries from two different continents. Evaluate the fit of these two companies based on the 12 criteria listed in your readings. Which of these criteria would be most critical and which country would you select? Explain.

Respond using the critical elements below:

Compose your original response in Standard English, paying special attention to grammar, style, and mechanics.
Respond to the questions in a thorough manner, following the prescribed format and citing your sources using the current APA guidelines.
Ensure that your viewpoint and purpose are clearly stated.
Demonstrate logical and appropriate transitions from one idea to another.
Your paper should be highly organized, logical, and focused.

ANSWER

Global Location Decisions

Green Gate Fresh Global Location Decisions

Global extension is important for an organization since it offers a chance to learn new things, and also to improve on the current practices. It helps an organization to be more competitive, and it also helps to build relationships with other organizations. Expanding globally allows an organization to build its brand, and to reach new markets. This paper focus on Green Gate Fresh and how the company can extend globally.

What the Organization Does

Green Gate Fresh is a food company that specializes in fresh and healthy food. The company has been in business for over 10 years, and it has built a strong reputation for providing quality food products. Green Gate Fresh specializes in organic and sustainable foods (Green Gate Fresh, 2022). They work with farmers and suppliers all over the world to provide their customers with the freshest, most sustainable foods possible. Green Gate Fresh is committed to providing their customers with the highest quality food possible, and they work hard to ensure that their products are sourced from the best growers and suppliers available.

Green Gate Fresh is constantly expanding their operations to provide their customers with the best possible selection of organic and sustainable foods. Green Gate Fresh is an innovative and forward-thinking food company that is dedicated to providing its customers with the freshest, most sustainable foods possible. They work hard to ensure that their products are sourced from the best growers and suppliers available, and they are constantly expanding their operations to provide their customers with the best possible selection of organic and sustainable foods.

How the Organization Serves its Customers

Green Gate Fresh is an organization that is dedicated to providing its customers with the freshest, most sustainable foods possible (Green Gate Fresh, 2022). They have a commitment to social responsibility, and they work hard to ensure that their products are sourced from the best growers and suppliers available. They are constantly expanding their operations to provide their customers with the best possible selection of organic and sustainable foods.

Green Gate Fresh offers a wide range of products, including fruits, vegetables, meats, and seafood. The company also offers a variety of services, such as catering, delivery, and online ordering. Green Gate Fresh Produces a large variety of products that serve many purposes. For example, they have a line of products that are designed to meet the needs of people with food allergies or special dietary restrictions. In addition to their regular product lines. Green Gate Fresh also offers a number of seasonal and limited edition products. These products are only available for a limited time, and they are often only available in certain locations. Green Gate Fresh is always looking for new and innovative ways to serve their customers, and they are constantly expanding their product line to meet the ever-changing needs of their customer base.

They have an extensive control at all levels of production process from the seed to the farmer, ensuring that only the best ingredients are used in their products. Green Gate Fresh also has a commitment to social responsibility, and they work with a number of charities and non-profit organizations to promote healthy eating habits and provide access to fresh, healthy foods for people in need. They have programs in place to help farmers in developing countries get the training and resources they need to produce high-quality organic foods, and they also work with a number of food banks and other organizations to provide access to fresh, healthy foods for people who might not otherwise have access to them.

Merger and Acquisition

Merger and acquisition entails two firms consolidating or merge which simplifies the transition from one locale to another. This is a quick method of global extension and getting into a new market since the business either merges with another or takes over an organization’s stakeholders, distribution channels and supply chain. The main reason for undertaking acquisition and mergers is to expand an organization’s operations geographically (Hassan, Ghauri and Mayrhofer, 2018). Merger and Acquisition will have potential benefits to Green Gate Fresh since they will increase their market share, boost their profit, expand their current distribution network and extend their product capability in the market.

The Fit Country Based on the 12 Criteria

China and Germany are suitable for Green Gate Fresh global extension with regards to their global competitiveness. A high global competitiveness means that the country has a higher productivity which leads to a high living standards and sustainable growth. China ranks has a score of 73.9 in terms of global competitiveness. The score has been boosted by adaptation of ICT (78.5). China has a maximum score in the size of market (domestic and export market) and a high macroeconomic stability of 98.8. China score 68.1 on health, 77.9 on infrastructure, 64.1 on education, 64.8 on innovation capability, 59.2 on labor market and 57.6 on domestic market and 56.8 on institutions. They have recorded a low social capital and weak check and balances.  Germany has an overall score of 81.8 in terms of global competitiveness. Germany has best innovation capability with a score of 86.8. Germany has a maximum score in macroeconomic stability, 90.2 on infrastructure, 86.0 on market size, 92.3 on health, 72.8 on labor market, and 68.4 on skills.

The most critical criteria would be the size of the market. Market size is a good indicator of the potential business when entering a new marketing (Child et al., 2017). Market sizing gives a picture of the market trends and estimated demand of the product. Therefore, the greater the market size the greater the probability of entering the market. Green Gate Fresh can benefit from a large market size for their fresh produces.

With regards to market size criteria, China has a maximum score on size of the market for both import and export market. Merging and acquiring a business that is successful in a large market size can quickly boost the success of a brand. Therefore, China is the most suitable for global extension due to their large market size. The market size will be offer a high potential for revenue and sales for the company.

References

Child, J., Hsieh, L., Elbanna, S., Karmowska, J., Marinova, S., Puthusserry, P., … & Zhang, Y. (2017). SME international business models: The role of context and experience. Journal of World Business, 52(5), 664-679.

GreenGate Fresh. (2022). Superior Service and Premium Quality – All for an Excellent Value. Available at: https://www.greengatefresh.com/

Hassan, I., Ghauri, P. N., & Mayrhofer, U. (2018). Merger and acquisition motives and outcome assessment. Thunderbird International Business Review, 60(4), 709-718.