Miscellaneous

Global desegregation versus Local Responsiveness Internation ally direct companies have to face two major challenges on how to put together and coordinate their value chain in the most competent and most profitable way: global integration and local anesthetic responsiveness (Daniels et al, 428). On the one hand, the growing globalization in the business world requires companies to lodge to global strategies, which emphasize proceeds standardization and globally functioning infrastructures (customer service, supply chain management, communication). On the other hand, consumer preference and host-government policies forces companies to tailor their operations and/or adapt to local market requirements (Daniels et al, 430). It is and will remain a considerable balancing act for all international companies to manage the quip of this apparent conundrum. However, distinctions have to be made when it comes to specific industries. The Integration Responsiveness (IR) Grid (Daniels et al, 431) illustrates for instance that bulk chemicals require naughty standardization and central control regarding global integration, whereas local responsiveness is of minor necessity. BASF, the German based and estimated biggest chemical guild in the world, operates 330 deedion sites around the globe.

Since most of its produced chemicals are considered commodities, the focus of the companys global production is efficiency and economies of scale. The more a plant produces, the lower the fixed costs per ton of product (economies of scale). This is why BASF operates such cost-efficient large-scale facilities in all regions. (BASF Website). Their so-called Verbund-System, the German translation of a combination of plants that act on a global basis by consistently informing about best practices, makes use of integrated production processes to manufacture as inexpensively and as efficiently as possible. Hence, local responsiveness plays a minor role, but cannot be disregarded completely. Environmental... If you want to get a full essay, invest it on our website: Orderessay

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