Supply Management

Student name: Tse Po Lun, Eddie

Student no.: 1998124153

Subject name: Supply Management

Subject code: IELM6046

Lecturer name: Dr. W.K.Stephen Ng

1. Discuss the terms: strategy, outsourcing, relationship development, and global supply management

By discussing the term strategy, it is a goal for a group to gain and sustain competitive advantages whatever in business world or in competitive world. Per business perspective, strategy is one of the vital elements in an organisation; it is developed from V-MOST (Vision, Mission, Objective, Strategy and Tactic) which is extremely important to a company for running business successfully.

If a management group in an enterprise understand the customer needs and build up a strategy plan close to competitive realities, it can result in value creation and superior company performance while strategy plan could cause failure in the business if it doesn’t reflect to reality. Hence in order to win in a competition, regular review on the strategy plan in order to achieve market requirement is a key way to succeed. A computer product and service provider Dell is a good example for strategy review, Michael Dell who is the founder of Dell stated that “We focus on how we can coordinate our activities to create the most value for customers”, this is a driving force to their company to deal directly with customer for understanding their actual needs, also sell their computers directly to their end customers. This allows them to cut out all retailers’ margin which in turn to offer lower price to their customers. While the market was changing very fast and customers increasingly wanted up-to date computers with a high design value, and most significantly, they wanted to see, touch and feel the products before buying them, this is beating Dell who had spent 20 years investing in its telephone and internet based sales channels. But finally, Dell did recover and has re-emphasized its commitment to matching...