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Retail entry into India
India’s retail sector is one of the most robust, and the country’s major economic pillars. This is in terms of the number of retailer outlets, country’s total GDP, and the people working in these outlets (Branch, 2008). However, despite the robustness of this sector, there are various restrictions that have been put in place to prevent Foreign Direct Investment (FDI).
Larsen (2007) point out that the current situation in India, as far as foreign activity in India’s retail sector is concerned; FDI is still not permitted in the country’s mass retailing sector. Be that as it may, there is a provision that allows foreign investors to become majority shareholders in some of the retail outlets, which deal with their products.
Drake (2012) notes that the entry of established retail outlet chains, such as Wal-Mart, is likely to increase the supply chain efficiency in India’s retail industry. This is because they will, among other things, enhance the sector’s ability when it comes to value addition and ensuring that products do not get spoiled as a result of lack of storage facilities.
Moreover, Drake (2012) explains that the entry of established chains is likely to have a positive effect on the existing local retailers because it will ensure standardization in the sector’s products. This will enhance the sector’s capacity to export its products.
Determination of Successes and Failures
Several strategic factors determine the success and failures. First and foremost, Taylor (1997) notes that the nature of the products themselves is a key determinant when it comes to the success or failure in global supply chain management. Global retail outlets, such as Wal-Mart, that have managed to successfully ensure that there is value addition in their products, have been successful in their operation.
This is because such products are able to attract higher prices in the international market because of the nature of their quality (Mangan, Lalwan & Butcher, 2008). The ability to understand market dynamics and make the appropriate adjustments is also another aspect that should be taken into consideration. A global supply chain outlet operates in different market environments and, therefore, it has to tailor its operation to suit the exact needs of the market.
Finally, the ability to align the operations of the outlet with the market demand is also an important determinant, as far as determination of success or failure of global supply chain initiatives is concerned (Mentzer, 2001). This will ensure that the inventory levels are maintained at optimum, thus preventing any losses resulting from excess inventory.
Repatriation involves the movement of employees back to their original or birth countries (Mangan, Lalwan & Butcher, 2008). Multinational corporations such as Unilever usually repatriate their employees for various reasons, including the fact that employees are likely to be more productive in familiar settings. However, there are several problems associated with repatriation.
First and foremost, repatriation might result into underutilization of an employee’s talent or abilities, especially if they are repatriated back to a country whose ability to enhance and improve performance of the company in question, has been compromised. Secondly, repatriation results to a loss in the country of origin.
This is because it basically involves exodus of talent and capacity, which are associated with the employees in question (Mentzer, 2001). Finally, repartition can be used for discriminatory purposes whereby, managers might decide to repatriate certain employees because they have conflicting interests (Mentzer, 2001).
Inpatration involves movement of employees from the sub-office countries to the head office countries (Taylor, 1997). Inpatration is usually aimed at encouraging exchange of ideas for the purpose of improving the overall management of the organization (Koster, 2007). Despite its obvious benefits, there are several problems associated with inpatration. First of all, inpatration can be counterproductive if there is a conflict between employee interests in the two countries
and, thus, its objectives will not be attained. Secondly, inpatration might result in unfavorable business practices being introduced into the host countries, as a result of the inpartriated employees learning the same from the head office country (Kouvelis & Su, 2007).
Branch, A.E. (2008). Global Supply Chain Management and International Logistics. London: Routledge.
Drake, M. (2012). Global Supply Chain Management. London: Taylor & Francis.
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Koster, B.M. (2007). Managing Supply Chains: Challenges and Opportunities. Copenhagen: Copenhagen Business School Press.
Kouvelis, P. & Su, P. (2007). The Structure of Global Supply Chains. New York: Now Publishers.
Larsen, T. (2007). Managing the Global Supply Chain. Copenhagen: Copenhagen Business School Press.
Mangan,J., Lalwani, C. & Butcher, T.(2008). Global Logistics and Supply Chain Management. Boston: John Wiley & Sons.
Mentzer, J.T. (2001). Supply Chain Management. London: SAGE.
Taylor, D.H. (1997). Global Cases in Logistics and Supply Chain Management. New York: Cengage Learning.