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Example research essay topic: Normal Functioning Raw Materials - 679 words

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Business Strategy Paper The increase of Global Trade by 7 % last year caused the creation of bottlenecks in seaports throughout the globe. This problem is especially becoming acute in China, which imports 60 % or raw materials, needed for normal functioning of its economy. The most important reason for this is the fact that its railway system is state-operated and there were very little investments directed to increase its transporting capacity. Also, Chinese commodity ports need to be reequipped, which would enable them to keep up with an increasing amount of in bounded raw materials. This requires an application of a strategic economical approach on the part of Chinese leaders.

Yet, it appears that they dont really care about the future, pursuing a momentary economical profits by simply increasing its exports, thus creating traffic jams in the seaports throughout the world. This also affects other categories of transportation, such as railways systems and deliveries by heavy-duty trucks. There is currently a 20 days hold up, during which an in bounded ships must wait for their turns to be unloaded in Chinese seaports. Yet, the ships that deliver goods from China dont seem to have any operational problems, related to ports being too busy. This shows that the situation, when transportation systems in North America and Europe are jammed with Chinese cheap products, is probably a part of some larger plan. In my opinion, there no purely economic method can be effective method in dealing with problem of transportation bottlenecks.

I also doubt that improving transportation infrastructure can prove to be beneficial in the long run. What needs to be done, is reconsidering the concept of Global Trade on the level of state governments. Those who promote this concept only care of how to extract the most profits, with minimal investments, within the shortest time. Thats why companies relocate their production lines to the Third World countries, particularly in China, where is an abundance of cheap labor. The only effective way to deal with this is when Western governments introduce laws that would limit such tendency. If I was a manager of a company that sells high volume components from East Asia in Midwestern U.

S. , I would adjust the business strategy of my company, according to the newly arisen circumstances of traffic jams that now occurring worldwide. Since there is a tendency among U. S. manufactures to increase the import of components, needed for normal functioning of its production lines, I would sharply increase fixed orders on every particular item. This would enable my company to deliver ordered components to the manufacturer without delay, since they will be stored in the USA mainland, rather than being stored elsewhere. Although additional storing expenses will come as a result of this, itd would guarantee that the supply line remains uninterrupted, thus insuring that there wont be any damage done to the reputation of our company if there were to be delays in delivering ordered components on the part of shipping company.

Another thing I would consider, is researching the possibility of shipping the ordered components by different means, such as air cargo. The cost of this would be as much as 10 times higher, yet itd be better to insure the deliverance of these components than taking a risk of having the supply line stalled. As a manager, I would also try to find the way to import the needed components from elsewhere. The most of the electronic components are produced in East Asia under the commercial license, which means that there are other industrial areas in the world, from where the technology had originated.

The only reason to import such products from East Asia is because its much cheaper. Still, if there was going to be the way to import such components from other part of the world, I would consider this. The financial loses that my company would sustain because of readjusting its commercial strategy, could be compensated by an increased price for required components, because of its much better quality comparing to those made in Asia.


Free research essays on topics related to: production lines, east asia, normal functioning, global trade, raw materials

Research essay sample on Normal Functioning Raw Materials

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