Wednesday, August 28, 2019
Supply Chain Management Essay Example | Topics and Well Written Essays - 2000 words
Supply Chain Management - Essay Example -21 Security Limited with a view to recommending changes to supply chain strategies to resolve current problems. It will begin with an evaluation of the environment and the potential impact of this on the business, then present an analysis of the current supply chain, identifying problems requiring resolution in both the immediate and longer term. The problems will then be assessed against the key challenges facing the business to determine what direction the business needs to take to avoid future problems as well as resolve existing ones. Following a brief conclusion, a series of recommendations will be made relating to the supply chain that will reduce and/or remove the current problems and put the business in a better position to deal with the future. Environmental Analysis Worthington and Britton (2009, p.6) define the macro environment as Ã¢â¬Å"those ... factors ...which affect a wide variety of businesses and which can emanate not only from local and national sources but also from international and supranational developmentsÃ¢â¬ . Johnson et al (2011, p.50) identify the PESTEL framework as a means of analysing the environment. Following corporate scandals and the global 2007-2008 economic crisis, several commentators have added ethics to the analytical list. This approach will be used to analyse the macro-environment of Q-So!-21. The STEEPLE framework considers the Socio-cultural, Technological, Economic, Environmental, Political, Legal and Ethical factors that affect business and over which business has no control. Figure 1: Macro Environmental Analysis This brief analysis provides an indication of some key factors that will affect Q-So!-21. Many of them stem from the current UK (and world) economic situation. With the focus on austerity, the most recent figures indicate the UK either did not grow or contracted last quarter (Wintour 2011). As the government have stated their intention to continue with current economic policies, there is the real possi bility of another UK recession, with very little available for industry and individuals to cut, as most cuts were made following the 2007-2008 global economic crisis. As such, many businesses may find a second recession occurring so soon after the last one, with a higher tax burden this time (increases in VAT and both income tax and national insurance) results in their ceasing trading, exacerbating the effects of the cuts being made and intensifying the impact of the recession. Even without recession, the higher tax burden and public sector cuts being made are likely to cause many businesses to cease trading, either voluntarily or through insolvency. The market for all goods and services will become increasingly tight, with both business and personal consumers keeping purchases to the absolute essentials as everyone focuses on keeping their heads above water. The Bank of England may be forced to raise interest rates, which have been at an historically low 0.5% for some time, allowin g both businesses and individuals to mitigate to a certain extent, the lack of price/wage rises (although the Consumer Price Index (CPI) is well above the 2% target set by the government). The impact of any rise will depend on the amount of the rise. If rates rise to, say, 1.5%, then it is likely most people will be able to adjust their outgoings to compensate.