Today, for large multinational corporations (MNCs), building or maintaining their competitive advantage requires effective methods in managing the global supply chain in order to evaluate raw resources, inventories of warehouse and factory productivity. Multinationals look to global sourcing for several reasons, including: scarcity or high cost of local raw materials, low labor costs in developing countries, and increasing market share in new geographies. Effectively managing the global supply chain is literally the lifeblood of a multinational corporation producing goods to sell around the world. Building an effective global supply chain involves integrating and coordinating common materials, processes, designs, technologies and suppliers through global purchasing, design and supply. operational headquarters (Trento, 2005). Managing the global supply chain poses many challenges that will be examined, including cultural differences, language, regional and government laws and regulations, as well as the design and integration of the global information infrastructure (GII). Furthermore, the risk assessment of possible disruptions in the supply chain will also be reviewed. Addressing Differences in Culture and Language Every large multinational has a defined culture within it, which has been developed by senior leadership (Schein, 1985). It is the responsibility of senior leadership to manage and sometimes change cultural values within the organization to better adapt to changes in the environment, for example by moving to a different geographic area with different cultural values (Schein, 1985). Leadership must effectively manage both language and culture in order to maintain an efficient flow of raw materials, assembly and product shipments throughout the supply chain. Managing is... at the center of the article......Cultures. Retrieved from: http://gbr.pepperdine.edu/2010/08/managing-in-an-era-of- multiple-cultures/ Rolland, K. H., & Monteiro, E. (2002). Balancing the local and the global in infrastructure information systems. The information society, 18(2), 87–100.Schein, E. H. (2010). Organizational culture and leadership. San Francisco: Jossey-Bass.Selig, G. (1982). Strategic planning approaches for information resource management (IRM) in multinational companies. MIS Quarterly, 6(2), 33-45.Trent, R. J. (2005). Achieving excellence in global sourcing. MIT Sloan Management Review, 47(1), 24-32. Retrieved from http://search.proquest.com/docview/224962244?accountid=38569 Waples, E. & Norris, D. M. (1992). Information systems and cross-border data flow. Retrieved from: http://faculty.usfsp.edu/gkearns/Articles/Information%20Systems%20and%20Transborder%20Data%20Flow.htm
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