Integrating Spatial Analytics in Global Sourcing Decisions

2018 ◽  
Vol 17 (03) ◽  
pp. 709-739
Author(s):  
David M. Goldberg ◽  
Jason K. Deane ◽  
Cliff T. Ragsdale
Keyword(s):  
Global Economy ◽  
Risk Mitigation ◽  
Business Environment ◽  
Mitigation Strategy ◽  
Minimal Risk ◽  
Global Sourcing ◽  
Spatial Analytics ◽  
Local Business Environment ◽  
The Cost ◽  
Objective Program

The ability or inability to develop an effective, reliable supplier network can often play a major role in determining an organization’s competitive position. Especially in today’s era of a complex global economy, disruptions to an organization’s supply chain can drastically undermine its ability to compete. We analyze the interaction between density risk, or risk related to the proximal relationships between suppliers, and environmental risk, or risk arising from conditions affecting a supplier’s local business environment. We provide a powerful supply base risk mitigation strategy incorporating spatial analytics to enhance our analyses. We develop a multi-objective program to manage these factors and recommend minimal risk supply bases. We detail the interaction between objectives in an example and discuss the ramifications for managers. This work will assist managers in their efforts to build a supply base that meets the cost and efficiency demands of their organization.

scholarly journals Materials Manufacturing

MRS Bulletin ◽  
1992 ◽  
Vol 17 (4) ◽  
pp. 27-34
Author(s):  
Thomas W. Eagar
Keyword(s):  
Global Economy ◽  
Technological Development ◽  
New Products ◽  
The United States ◽  
Business Environment ◽  
Advanced Materials ◽  
Manufacturing Companies ◽  
New Material ◽  
And Function ◽  
The Cost

The behavior of successful manufacturing companies has changed in response to the accelerating pace of technological development in recent years. Manufacturing firms are under greater pressure than ever to bring new products and processes to market rapidly, with lower costs and higher quality than achieved in the past. In addition, the establishment of a global economy no longer dominated solely by the United States has required firms to expand their outlooks and horizons. Successful firms must take a multinational view, understanding and serving local customer needs while maintaining the efficiency of a global enterprise. This requires greater flexibility in manufacturing and distributing new products.As the business environment for materials manufacturing changes, so too does our measure of materials performance. Traditionally, materials scientists and engineers have emphasized processing, structure and properties, and the way they come together to produce performance of a product in a given application. However, as shown by Figure 1, there are several additional dimensions to performance. In particular, successful commercial performance depends not only on the physical properties of the material but also on our ability to shape it into a useful object in an economical and timely manner. Without shape, the product cannot serve its intended function, and without economical production, the product's usefulness is limited to fewer, higher value applications. Achieving more rapid and more consistent commercial success from advanced materials requires emphasizing not only the process by which the material is made but the process by which the material achieves its geometry and function, while at the same time maintaining the ability to bring these materials to market rapidly at an economical price. Indeed, the cost delay in commercializing a new material can be the key to success or failure.

scholarly journals Aggravate or Mitigate? How Cost Analysis Associated into Risk Management Process

2020 ◽  
Vol 19 (1) ◽  
pp. 47-54
Author(s):  
Winda Nur Cahyo ◽  
Eky Fasich Trialopa ◽  
Hari Purnomo
Keyword(s):  
Risk Management ◽  
Cost Analysis ◽  
Potential Risk ◽  
Risk Mitigation ◽  
Mitigation Strategy ◽  
Mitigation Strategies ◽  
Management Process ◽  
Risk Map ◽  
Risk Management Process ◽  
The Cost

In most researches in the area of risk management, the result stops at proposing the mitigation strategies. The number of researches on associating cost analysis into the risk management process is very limited. This paper proposes a practical process on how cost analysis can be associated into the risk management process especially in the area of manufacturing. The process of the risk management is conducted as usual, started by selecting the potential risk and finding the major causes. Then, a risk map and its rubric of risk likelihood and severity are developed, and the major causes are plotted into it to select the priority of the major causes and the proposed mitigation strategy is developed. Then, the poposed strategy is compared with the current strategy based on the cost generated using the developed equation. The result shows the proposed mitigation strategy is selected because it saves approximately IDR 2 million per order. It indicates that cost analysis can be successfully associated into the risk mitigation process and generates a comprehensive recommendation to the decision maker.

scholarly journals Global Economy Crisis and its Impact on Operational Container Carrier’s Strategy

2018 ◽  
Vol 30 (2) ◽  
pp. 187-194
Author(s):  
Vladimir Jerebić ◽  
Stanislav Pavlin
Keyword(s):  
Problem Solving ◽  
Global Economy ◽  
Management Strategies ◽  
Business Environment ◽  
Market Potential ◽  
Container Shipping ◽  
Freight Rates ◽  
New Business ◽  
Cyclic Changes ◽  
Economic And Financial Crisis

The shipping market is an economic derivative of global production and trade, being precariously subject of their cyclic changes, depressions and expansions. This paper analyses the condition of global container shipping market, caused by long-lasting economic and financial crisis that begun in 2008, but is still much visible within the container industry, particularly through overcapacity and low freight rates. It also deals with major changes of maritime container carrier’s management strategies, development and application of advanced transportation, technological, technical, economical, organizational and commercial measures in order to adapt and cope with new business environment. Finally, an attempt is made to forecast the market, potential difficulties and to propose problem-solving measures.

Evaluating the cost and benefits of earthquake protection of buildings

2018 ◽  
Vol 11 (2) ◽  
pp. 263-278 ◽  
Author(s):  
Benedetto Manganelli ◽  
Marco Vona ◽  
Pierfrancesco De Paola
Keyword(s):  
Real Estate ◽  
Seismic Risk ◽  
Risk Mitigation ◽  
Tax Incentives ◽  
Seismic Retrofitting ◽  
Content Type ◽  
Seismic Risk Mitigation ◽  
The Cost ◽  
Earthquake Protection ◽  
Real Estate Assets

Purpose The purpose of this study is the evaluation of the cost and benefits of earthquake protection of buildings to verify whether the legislative push, through tax incentives, will produce results and lead to a redevelopment of private real estate assets. Design/methodology/approach Through contingent valuation, this research aims to measure the propensity of homeowners to invest in the seismic security of their properties. The sample of homeowners was selected in a southern Italy city, which was characterized by a medium-high seismic hazard. The willingness to pay, once made independent from the family income, was compared with the actual cost of a seismic retrofitting technique to assess its cost-effectiveness. Findings The analysis developed on an example case shows that the economic sustainability of the intervention is only verified when considering the current tax incentives for this type of intervention. Practical implications Choosing to introduce a system to compulsory insurance against seismic risk could certainly be a strong incentive for the implementation of retrofitting interventions on private real estate assets. In this direction, investigations like this can be fundamental to establish the fair risk premium. Originality/value The need for effective seismic risk mitigation policies is also based on the growing awareness of the, often fatal, effects of seismic events, emphasized by the recent medium and high intensity events that hit Italy. The issue of the security of residential buildings is therefore a very topical issue in view of their high seismic vulnerability and the vast number of buildings requiring major seismic retrofitting. Therefore, the propensity of owners to intervene in improving the seismic performance of their properties can be crucial in seismic risk mitigation.

The Rise of Transnational Corporations from Developing Countries in the Second Half of the 20th Century

Istoriya ◽  
2021 ◽  
Vol 12 (11 (109)) ◽  
pp. 0
Author(s):  
Alexey Kuznetsov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
World Order ◽  
Developed Countries ◽  
Global South ◽  
Business Environment ◽  
Outward Foreign Direct Investment ◽  
Foreign Direct Investment Stock

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.

scholarly journals The ALARP Principle in the Cost-Benefit Analysis for the Acceptability of Investment Risk

2018 ◽  
Vol 10 (12) ◽  
pp. 4668 ◽  
Author(s):  
Antonio Nesticò ◽  
Shuquan He ◽  
Gianluigi De Mare ◽  
Renato Benintendi ◽  
Gabriella Maselli
Keyword(s):  
Cost Benefit Analysis ◽  
Risk Mitigation ◽  
Cost Benefit ◽  
Economic Evaluations ◽  
Investment Risk ◽  
Benefit Analysis ◽  
Mitigation Design ◽  
The Cost

The process of allocating financial resources is extremely complex—both because the selection of investments depends on multiple, and interrelated, variables, and constraints that limit the eligibility domain of the solutions, and because the feasibility of projects is influenced by risk factors. In this sense, it is essential to develop economic evaluations on a probabilistic basis. Nevertheless, for the civil engineering sector, the literature emphasizes the centrality of risk management, in order to establish interventions for risk mitigation. On the other hand, few methodologies are available to systematically compare ante and post mitigation design risk, along with the verification of the economic convenience of these actions. The aim of the paper is to demonstrate how these limits can be at least partially overcome by integrating, in the traditional Cost-Benefit Analysis schemes, the As Low as Reasonably Practicable (ALARP) logic. According to it, the risk is tolerable only if it is impossible to reduce it further or if the costs to mitigate it are disproportionate to the benefits obtainable. The research outlines the phases of an innovative protocol for managing investment risks. On the basis of a case study dealing with a project for the recovery and transformation of an ancient medieval village into a widespread-hotel, the novelty of the model consists of the characterization of acceptability and tolerability thresholds of the investment risk, as well as its ability to guarantee the triangular balance between risks, costs and benefits deriving from mitigation options.

scholarly journals CONCEPTUAL FOUNDATIONS FOR IMPROVING THE ASSESSMENT OF THE EFFECTIVENESS OF TERRITORY POSITIONING

2021 ◽  
Vol 71 (3) ◽  
Author(s):  
Elina Boichenko ◽  
Liudmyla Kobyliatska
Keyword(s):  
Cost Effectiveness ◽  
Modern Science ◽  
Well Being ◽  
Business Environment ◽  
Intangible Asset ◽  
Social Nature ◽  
Clean Environment ◽  
Brand Promotion ◽  
Business Entities ◽  
The Cost

The article deals with the problems of positioning the Territory (Country, Region, United territorial communities). When positioning a territory, use only such characteristics that are important, for example, for business entities, investors, residents, or persons who are interested in this territory, and which they focus on when making their choice. It is proved that the results of positioning the territory can be considered the formation of economic, social, and attractive attractiveness of the territory. The essence of economic attractiveness as a set of results of financial and economic activity of the economic complex of the territory and its economic potential is considered. Social attractiveness is considered as a process of creating a qualitative state of the living conditions of society, and above all, increasing the level of its social well-being. Attractivity in the context of forming the attractiveness of the territory is considered as a symbiosis of appropriate household (comfortable) conditions for the life of the population and a clean environment, the existence of a favorable business environment that ensures the efficiency of business activities and creates the basis for meeting the various needs of society. The results of positioning a territory are considered as an intangible asset that has its value. The effectiveness of measures for positioning a territory (country, region, ah) can be determined using appropriate assessments of its effectiveness. In modern science, the concept of "efficiency" is considered an economic category that has independent qualitative and quantitative characteristics. Note that efficiency will be understood as the ratio between the results obtained and the costs (resources) for obtaining these results. When evaluating the effectiveness of territory positioning, we consider comparing the costs already incurred with the results of the positioning procedure. Thus, the importance of improving the assessment of the effectiveness of territory positioning is primarily due to the social nature of these costs. Estimating the cost-effectiveness of territory positioning is significantly complicated. This is because the results of this process (image creation, brand promotion, business reputation formation) are expressed not so much in monetary or value-form, but have an intangible effect. Difficulties in estimating the cost-effectiveness of territory positioning arise due to the uncertainty of the final result, which can only be predicted approximately. Thus, it is advisable to consider the results of positioning the territory as an intangible asset that has its value. The article offers an approach to assessing the effectiveness of territory positioning, which consists of using a system of indicators that combines economic, social, and attractive efficiency.

scholarly journals A critical review of corporate governance reforms in Malaysia

2017 ◽  
Vol 6 (1) ◽  
pp. 38-44 ◽  
Author(s):  
Ahmad Al-Hiyari
Keyword(s):  
Corporate Governance ◽  
Financial Statements ◽  
Business Environment ◽  
Market Regulation ◽  
Policy Makers ◽  
Corporate Managers ◽  
Accounting Scandals ◽  
Governance Practices ◽  
Capital Market Regulation ◽  
Local Business Environment

Following the East-Asian financial crisis in 1997 and the corporate accounting scandals, the shareholder’s confidence in the audited financial statements was adversely affected and regulators started to think seriously reforming the existing corporate governance practices. As a result, numerous initiatives were implemented to accelerate improvement of corporate governance practices. One of these initiatives was the Malaysian Code on Corporate Governance (MCCG). The code was derived from the approach applied by the British Hampel Committee, which attempt to mitigate the agency problem between corporate managers and outside owners. This study suggests that the British approach is unsuitable to Malaysian business environment. Particularly, the MCCG that had been lunched since 2011 ignore the uniqueness of Malaysia’s capital market, regulation environment and ownership structure. Therefore, the study recommends that policy makers and other regulators should consider the local business environment when establishing future code on corporate governance.

scholarly journals Family Businesses in Global Economy and Evaluating their Financial Health Using Bankruptcy Models

2021 ◽  
Vol 129 ◽  
pp. 03031
Author(s):  
Maria Truchlikova
Keyword(s):  
Financial Distress ◽  
Global Economy ◽  
Agricultural Sector ◽  
Prediction Models ◽  
Predictive Accuracy ◽  
Value Added ◽  
Business Environment ◽  
Bankruptcy Prediction ◽  
Family Businesses ◽  
Financial Health

Research background: Predicting and assessing financial health should be one of the most important activities for each business especially in context of turbulent business environment and global economy. The financial sustainability of family businesses has a direct and significant influence on the development and growth of the economy because they still represent the backbone of the economy and play an important role in national economies worldwide accounting. Purpose of the article: We used in this article the financial distress and bankruptcy prediction models for assessing financial status of family businesses in agricultural sector. The aim of the paper is to compare models developed by using three different methods to identify a model with the highest predictive accuracy of financial distress and assess financial health. Methods: The data was obtained from Finstat database. For assessing the financial health of selected family businesses bankruptcy models were used: Chrastinova’s CH-Index, Gurcik’s G-Index (defined for Slovak agricultural enterprises) and Altman Z-score. Findings & Value added: This article summarizes existing models and compares results of assessing financial health of family businesses using three different models.

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