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Going global- AGB 202

Going global- AGB 202 - issues and deficits in their global...

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Joe Cremen AGB- 202 Going Global a. What is a retailers motivation to go direct? Retailers go direct in an effort of cutting off the middle-man (importer) as much as possible and dealing directly with the grower. The larger a chain is, such as Wal-Mart, the easier it is to go direct. Wal-Mart now has an office in Chile. “As retailers seek to cut costs, reduce prices and boost their corporate image, they are extending their global reach and seeking to build relationships with growers around the world.” Another reason why retailers are motivated to go direct is less room for error. The retailers can hold themselves accountable for the shipping of their loads. Going direct is “part of an expansive effort to reduce costs, improve speed to market, and present themselves as globally conscious organizations working closely with their offshore suppliers.” b. What are a few issues that they have regarding going global? Going global has proven to be problematic for retailers because of organizational
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Unformatted text preview: issues and deficits in their global sourcing infrastructure. Another problem many retailers face is their employees’ lack of knowledge. While some retailers find direct sourcing to be saving them a lot of money, their customers are often times not happy with the quality of the product. Handling produce is much different than anything else. The extra couple dollars for an importer to get the produce on the shelf in a timely manner with great quality is sometimes worth it. c. Which industry professional do you agree with? I tend to agree with Jungmeyer. Direct sourcing is a massive undertaking. An extremely large economy is needed to be a successful at going global. Many retailers are unable to achieve that type of economy. A large, knowledgeable work force is also needed to make direct sourcing successful. I agree with Jungmeyer’s comment, “The trend toward direct buying is going to continue, but I don’t see it becoming the de-facto way of doing business.”...
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