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Global integration; implications for technology, supply network

Read the article by Palmisano, S.J. (2006) 'The Globally Integrated Enterprise, Foreign Affairs, 85 (3) pp.127-136.

Please answer these questions:

-Identify the significant developments that are occurring related to global integration.

-What implications does this have for the technology that an organization might have in its supply network?

With citation and references.

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1. With the advent of technology there has been a shift in the way multinationals are operating. Earlier the manufacturing of goods took place close to where they would be sold. Also, the manufacturing activity was performed within the domestic boundary of the organization. However with global integration, companies are able to gain access to resources which were unthinkable till now. Following are few of the developments that are occurring as a result of global integration:
• Cutting of production costs: As opposed to confining manufacturing within local boundaries, companies are now able to look out for manufacturing sites where production costs would be lowest. The countries which have benefitted the most as a result of this development and due to lower wages are China and India.
• Outsourcing of non-value added activities: Companies can now hand over ...

Solution Summary

The impacts for technology, supply network in global integration is examined.