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impact of the Internet on Komatsu

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Research and describe the impacts of the Internet on Komatsu corporation.
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Research and describe the impacts of the Internet on Komatsu corporation.

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1. What are some significant contemporary issues that are evolving in global value chain management?

One of the major issues evolving in global value chain management is the challenge of integrating the value chain spread over different countries across the world. With the evolution of global value chain, companies are trying to source, produce and manufacture products in several locations across the world to tap opportunities related to outsourcing and comparative advantage. As countries differ significantly in terms of cultures, customs, business practices and infrastructure, it has become a major issue for global corporations to effective integrate the entire value chain for smooth functioning.

Another major challenges include addressing management and human resource issues, challenges pertaining to upgrade and protect proprietary technology and financial management issues.

2. How are these issues being resolved?

The issues pertaining to successful integration of participants of the global value chain located in different countries across the world can be resolved by working closely with the business partners via effective two-way communication and by upgrading the infrastructure, upgrading the skill set of employees via training and education and implementing technological solutions after extensive analysis to bridge the infrastructure/technology gap between the various participants in the value chain.

Global corporations can eliminate issues pertaining to financial management, exchange rate fluctuations, etc. by using financial institutions providing global financial management services and utilizing hedging mechanisms to hedge their exposure in the global value chain.

3. How do they impact the effectiveness of the global value chain?

The major impact of the effectiveness of global value chain is significant improvement in productivity, timeliness and quality of manufactured products. Effective global value chain management allows global organizations to tap opportunities related to comparative advantage in terms of cost, quality and strategic presence and thus, allows organization to operate more efficiently and attain improved operating margins.

Global value chain management allows organizations to maintain ...

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  • MBA, Rochester Institute of Technology
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