Nortel Networks Corporation’s Supply Chain College Application Essay Help Online

Table of Contents
The Worldwide Supply Chain The Market Entry Technique Comparison of Global Strategies pertaining to Global Supply Chain Management Conclusion Bibliography

The Worldwide Supply Chain

In order to build a plan for international operations, Nortel Corporation must consider shipping costs, delivery time, and potential dangers. Physical distribution and distribution routes are the two fundamental elements of the global supply chain. Both are concerned with physical and legal flows. Channels are a set of interconnected marketing entities that allow titles and products to reach consumers (Baudin 2005).

Typically, sales, communications, and contractual concerns influence the selection of these global channels or routes for reaching consumers. The global supply chain focuses on the actual movement of goods to markets. It regards the institutions composing channels as assembly and distribution hubs for products. Consequently, it encompasses the transit, movement, loading, stacking, handling, and warehousing activities of the entire channel. Today, Nortel's production strategy is product-centric, with global centers devoted to a single product. Each “systems house owns a supply chain for a certain set of products (Nortel Corporation 2008, p. 123).

It is crucial to consider the location of other supply chain centers, the cost of materials, and the cost of manufacturing in a foreign country when establishing a plant abroad. In addition, Nortel should consider packaging and order-processing actions that do not alter the physical look of the products but can damage or degrade them. For several industries, enhancements in the performance of physical distribution activities have enhanced marketing effectiveness and decreased expenses (Christopher, 2005). Not all business segments are affected equally. Nortel Corporation must focus on the following:

The extensive distribution of large goods. Filial warehouses Competitive locations for customer service. Significant freight charges. Substantial intracompany transactions. Significant investments in warehouse space and completed items. Seasonal demand or seasonal production.

The proposed strategies will be affected by a country's economic and political climate. In a fledgling nation, the primary economic indicators are high inflation rates and economic instability. Thus, enhancements to the global supply chain will cut certain costs and allow for the expansion of markets. Perspective is a distinctive contribution of physical distribution. It takes a systems approach to plant siting, transportation, storage, inventory, and movement and handling activities. These operations are planned as a coordinated system and are integrated with the other components of the global supply chain (Cohen and Roussel, 2004).

The Market Entry Technique

Nortel Corporation followed two primary entry tactics in its global expansion: a mergers and acquisitions approach and a market and product pioneer strategy. Both of these tactics enable Nortel Corporation to attain a leading position and compete with small and medium-sized businesses. Nortel Corporation acquired Bay Networks in recent years, allowing it to join the data processing market. To ensure profitable expansion, Nortel Corporation introduces new products that correspond to distinct periods of market growth. When some products are losing market share, others should be growing.

Sometimes this is accomplished through a merger; other times it is accomplished internally. Regardless, a company's position is determined by the complete product line in relation to its target markets. Opportunity evaluation must therefore span a period of time and continuously add growth opportunities to a company's current product portfolio (Drejer 2002).

Through ensure efficient logistics, Nortel Corporation builds its “own supply chain, which enables the management of all activities from initial customs interests to customer satisfaction.” (Nortel Corporation 2008, p. 123).

Major decisions, such as altering product lines or automating production, include risks and should not be made until the market opportunity has been evaluated. Thus, the selection of essential policies and tactics, and consequently the company's survival and expansion, are contingent on the circumstances. Due to limited firm resources, only certain prospects can be efficiently pursued. External factors include technological advancements and shifting market situations, while internal factors include research and development and revisions to products, packages, marketing channels, and advertising campaigns. Opportunity evaluation must consider both (Bennet 1996).

This procedure includes the rationalization of global operations and the improvement of overall quality. For Nortel Corporation, neither population expansion nor price reductions guarantee market entry. Opportunities are affected by market cultivation operations such as product creation, credit, advertising, and personal selling. The Nortel Corporation recognizes that the challenge and importance of identifying marketing prospects are heightened by the rapid evolution of technology.

Changes in technology produce not only new items but also entirely new industries. These advancements speed advances in sectors such as electronics, miniaturization, energy sources, high-temperature materials, rocket engines, and controllers, all of which will have a substantial economic impact. Some may even lead to the formation of entirely new industries. The space frontier will increase businessmen's risk-taking and long-term commitments in global and interplanetary space, as well as broaden their risk-taking and creative thinking.

Similarly, environmental contamination will result in the expansion of “the ecological industries” — industries dedicated to the preservation and improvement of the environment's quality. Of existence. The need to dispose of trash and sewage, minimize automobile and aircraft emissions, manage food contamination, and purify air and water creates unexplored business prospects. In this decade, billions of dollars will be spent on products and services intended to satisfy our ecological requirements (Baudin 2005).

For a comprehensive view of the market, a company and its products must be viewed from their broadest angle. In order for Nortel Corporation to comprehend that a corporation is not in the television business, but rather in communications, a broader perspective is essential. Likewise, a corporation markets domestic settings as opposed to household furniture. When evaluating market prospects, executives face a spectrum of conditions ranging from the comparatively simple to the most challenging to evaluate.

At one end of the spectrum are stable, nonperishable commodities with a consistent demand pattern. On the opposite end of the spectrum are products that are essentially new, or those with high style and high obsolescence factors. A good method for detecting market needs gives ideas, data, projections, and the evaluation of their potential. Salesmen can sometimes provide crucial insights (Chase and Jacobs 2003).

A "systems house" and supply chain integration are viewed as operations that facilitate Nortel Corporation's entry into a new market and establishment of a leading position. The management of change for Nortel Corporation entails the constant management of new market situations and the resolution of new difficulties. However, change is frequently perceived as a danger to established profitable businesses and goods. In actuality, the reverse is true (Stroh 2006).

By identifying profitable possibilities in a state of constant change, businesses are able to overcome threats and achieve growth. To effectively manage change, businesses must anticipate developments, anticipate logical repercussions, transform them into prospective possibilities, and devise strategies for capitalizing on profitable options. Create an environment where market change is foreseen, anticipated, and sought. To thrive, corporate systems must adapt to environmental changes and be adaptable enough to deal with their repercussions. New products and services must be programmed and planned for development. The potential inherent in change must become the executives' primary emphasis (Slack et al 2002).

This strategy may appear to reduce economic efficiency, yet it preserves consumer choice and has led to the best quality of life in human history. In a market-based economy, however, there is a trade-off between more efficient industrial processes and customer autonomy.

Management of the Global Supply Chain

Control over the supply chain is exercised by means of a process-based team and "value-managed relationships." In both instances, supply chain activities are carried out as a collection of separate functions rather than as a system. For the purposes of planning, directing, and coordinating physical distribution activities, it is preferable to house them all in one department. This is often achieved by the operations department in retailing and wholesaling.

In contrast, manufacturing typically lacks such cooperation. The physical movement of commodities is viewed by Nortel Corporation as a series of related actions carried out by a number of enterprises at various levels and interconnected to build a comprehensive distribution system. The design of a company's movement and storage system is determined by a cost-market need study of potential solutions. Transfer costs, operating costs, and marketing elements must be balanced. Transportation is the link between factories, warehouses, and markets. Physical distribution operations are influenced by the qualities of the product.

If product markets are extremely competitive, there is a significant need for physical distribution due to product substitution, the need for appropriate supplies and rapid delivery, and competitive pricing (Simchi-Levi et al 2008).

The primary function of the supply chain control system is to make products available to support the company's demand-creation efforts. Exemplary customer service can be described in various ways:

the percentage of customers whose orders are fulfilled within a specific number of days; the limitation of backorders to a specified level; delivery to any client in a specified territory within x days.

In addition to product availability, delivery dependability and frequency, order cycle time, and stock-out percentages, customer service comprises the following elements: Customers and rivals are considered while determining the quality of the customer service provided (Pfeffer and Salancik 1979). The services provided by significant rivals set the benchmark for the industry. However, while evaluating alternate physical distribution systems, management must also evaluate the impact of service differences on consumer response and profitability.

As is the case with breweries, a manufacturer may decentralize processing operations to put them closer to customers for low-cost and low-priced commodities with relatively high handling and transit costs. But if clients are willing to accept longer delivery times without switching to a rival, then centralized processing facilities may be utilized more efficiently and less efficient ones could be shuttered (Perreault et al 2003).

The Nortel Corporation's control systems are intended to maximize customer service while minimizing distribution expenses. The first objectives suggest numerous distribution facilities, extensive stockpiles, and swift transportation, while the latter objectives suggest the opposite. The realistic perspective entails a balanced strategy for developing a workable system that satisfies customers and consumers within cost, time, and competitive constraints. Marketing decisions are precipitated by physical distribution choices. They influence customers, retailers, and wholesalers, as well as the marketing strategies of manufacturers and vice versa.

Closing or relocating warehouses, for instance, has ripple effects across the system (Paley, 2006). The primary responsibility of marketing is to deliver and maintain the highest possible standard of living, to ensure that the products and services offered for sale are those consumers want, and to distribute them in the most efficient manner possible from the perspective of both consumers and businesses. Consequently, the identification of viable market groups becomes crucial for each company.

Global Comparative Strategies

The chosen company for comparison is British Telecom. This is one of the leading providers of broadband and communications services in the United Kingdom. In contrast to Nortel Cop rotation, BT adopts the strategy of the adopter. BT expands internationally through global alliances like as those with AT & T and MCI. This method enables Bt to penetrate new markets, but it restricts the company's autonomy and strategic options.

Similar to Nortel Corporation, BT concentrates on a complete process, despite the fact that legal control may be in the hands of multiple parties; that is, it is frequently concerned with the interconnection of various distinct businesses. Companies must view their independent distributors as a part of their distribution chain (Murphy and Wood, 2005).

Additionally, the value features of products must be examined. Low-value products, such as lumber and coal, absorb these expenses more easily for Nortel Corporation than high-value items, such as diamonds. Variations in product lines and characteristics such as packaging, color, size, and style create a significant strain on the distribution system. Now, a greater number of products must be handled with a smaller volume per item and higher storage, inventory, and handling costs.

Transport and handling expenses, remote locations, and time are obstacles to the growth of markets. Through physical distribution, expenses are decreased and geographical and temporal restrictions are overcome, allowing businesses to grow additional profitable markets. In actuality, logistical expenses have compelled businesses to withdraw from formerly supplied markets (McDonald and Christopher 2003).

Unlike BT, Nortel's supply chain activities are dynamic in response to market movements and competitive forces. Its strategies are adaptable and often revised in order to strike a balance between the objectives of serving the markets and minimizing distribution costs. Marketing managers must achieve a balance between physical-distribution components in order to improve the flow of goods to customers and consumers. Logistics decisions made by BT that are not coordinated result in comparatively high expenses.

Modern analytic tools, new technology (particularly data processing), and handling and moving equipment enhance services and save expenses. Examples of vehicle integration include the design of two-level and three-level railroad cars to transport automobiles, the development of containerization and special loading and unloading terminals, the use of highway transport for local pickup and delivery, and the elimination of warehouses through the use of air transportation.

In addition, physical distribution is the area of marketing where quantitative methodologies have been most effectively utilized. Using linear programming, simulations, and waiting-line theory, problems have been solved. For instance, linear programming has been utilized to cut shipping costs and find warehouses. Simulations have been used to answer challenges with the quantity and variety of warehouses. In contrast to other marketing circumstances, the employment of mathematical models may be justified by the concreteness of the components, the availability of data, and the approximate linearity of the correlations (Lansdowne 2007).

Nortel Corporation has a strategy of diversification. This expansion of product ranges is sometimes accomplished via merging. Diversification strategies that are meticulously designed can result in more fast growth, a more efficient use of resources, greater capitalization on the results of research and development, and enhanced achievement of business objectives. The diversification of a product may be horizontal, vertical, or heterogeneous.

Horizontal refers to diversification with new items in the same industry; vertical refers to movement backward or forward, such as in the manufacture or extraction of previously purchased products; and heterogeneous refers to diversification with new products and industries. Programs for product diversification must align with marketing objectives. The maintenance of profitability and sales positions necessitates alterations to the product-and-service mix, often substantial alterations.

Even over a five- or ten-year period, a company's product portfolio is consequently anything but stable. Changes are dictated by a product's life cycle, and products in developing phases must have adequate market capacity to compensate for the loss of those in decline. Multiproduct businesses must have a product mix with increasing total potential and profits. Between these two extremes, they may want to be reimbursed for their initial expenditures while still retaining ownership.