The largest challenge facing Ribs with its supplier network is that if business is moved to China they are facing a 38- day freight time. They must also build their network with suppliers in Eastern Europe. Ribs should develop new business areas and specifically enter into China. They already have a 10,000 square meters building in the Nordic Industrial Park, and most of that area Is aimed for companies specifically trying to rent a production cell. Usually Ribs charges Its clients for Its services but with the NIP building clients could void this capital being tied up.
When It comes to offspring China serves as one of the leaders for global expansion. There are 3 different categories that you can measure the global expansion on. After weighing China against two other countries that are possible candidates for expansion it appears to be the best. The overall business attractiveness chart comes from averaging the other three numbers together. One con of global expansion into China is the freight time of 38 days, which could cause delay in orders from companies if they decide to change orders suddenly.
These types of situations are calculated risks and China has plenty of other great reasons to locate there. Forecasting demand correctly can mitigate these types of problems. I en struggle Detente Delve steel maturating company Ana a consulting company appears to be a problem for Ribs. This is a major issue that must be addressed because Ramadan appears to be a lucrative extension of the business Ribs. In 2004, two-thirds of the year-end result stemmed from it. The consulting and outsourcing business is a very smart move for Ribs.
The problem arises with whom the company must hire. The business started with only two people who had higher degrees and eventually grew to eleven, which was needed for the Ramadan section of the company. That certain part of the company needed those higher educated individuals to go along with the growth and specialization in international outsourcing and logistics. This worked for Ramadan but began to make Ribs lose its edge because they no longer had the knowledge about production methods and techniques.
They began to hire less and less blue-collar workers especially when they outsourced manufacturing process to a Polish company. My suggestion is to treat the two entities entirely separate although they fall under the same umbrella. Hire separate types of people for each business unit. Blue-collar workers are needed for certain aspects as white-collar workers. Since Ramadan accounts for 2/3 of the revenue I would hold the hiring of those people above those blue-collar workers although they are still crucial to the business continuing to grow.
In Figure 3 and 4 of the reading you will see between 2000-04 the number of white collar workers increased from about three to eleven, and the revenue in those same years increased room about 70 million to 275 million. It’s also important to note that the number of skilled/unskilled workers decreased about 40 percent also. The Ramadan business operated by connected established business with quality track records and standards with its web of suppliers. They met with business to understand their actual needs and wants from the suppliers and exactly what they wanted to get out of outsourcing.
Consulting companies is a great tool and can bring in millions in revenue but one future problem I predict is companies accessing that web of appliers and business and later trying to go directly to them. Companies may use the resources of Ramadan and once they are in the door, stop relying on the consulting advice. I suggest some type of contract signing where if companies first time working with another company was through Ramadan that some type of percentage or payment will always be given to Ramadan. Contracts are not as common in some cultures where they like to build relationships in business.
These types of businesses would be perfect for the work Ramadan is doing since they meet tit Coos and quality directors face to face and go through various aspects of the business. The largest challenge in the configuration of Rib’s supplier network is finding new suppliers in China. Gaining a supplier network in a new region can be difficult because a company has to evaluate which suppliers are the best with little to no Knowledge Dehydrogenate. My suggestion would De to Interview Deterrent supply companies Just as Ramadan meets with Coos face to face to evaluate their problems.
These face-to-face meetings can cancel out any business with shady and normalized structures. Ribs must take this process very seriously because it is an essential part of the continued success. Although establishing a new supplier network can be challenging if Ribs follows a set structured interview process they will be able to identify worthy suppliers. The chart above demonstrates the gain of the company and its financial performance. Ramadan is going in the correct direction and expanding its supplier network will only increase these profits for the company.
In conclusion, I believe China is the right move for Ribs because they have nominative advantages by having a huge space located in China already. This allows them to already begin cutting end prices for customers. Ribs also has a division of the company that is growing exponentially. A business such as manufacturing can be duplicated with enough resources and time, but consulting and strategic advice cannot as easily. It takes a great mind to be able to look at a situation and draw logical conclusions and give advice to a company. Ramadan accounts for two-thirds of Rib’s total profits and is organized, rare, and difficult to imitate.