• Internal Code :
  • Subject Code :
  • University :
  • Subject Name : Supply Chain Analytics

Global Value Chain Decisions

Contents

Introduction.

Analysis of Poland.

Political

Economic.

Culture.

Education.

Competence.

Infrastructure.

Analysis of the Philippines.

Political

Economic.

Culture.

Education.

Competence.

Infrastructure.

Summary of analysis.

Recommendation for selection of country.

Conclusion.

References.

Introduction

The concept of the global value chain has become a domineering for contemporary organizations. The division of value chains across the national boundaries enables the companies to attain the benefits needed to preserve the competitive position in the market. Moreover, the companies get advantages in terms of greater economies of scale, enhanced innovation, and larger markets (Hernandez & Pedersen, 2017). This report discusses the global value chain decisions for the Cisco factories in china. Moreover, it entails the analysis of two locations namely Poland and the Philippines for the offshoring of Cisco business processes to one of these countries.

Analysis of Poland

Poland is the center of Europe that has become a popular offshoring location for large companies, investors, and clients. Below is the analysis factor that shows the strengths and weaknesses of Poland in terms of the political environment, education, culture, competence, infrastructure, and economic environment.

Political

The political environment of Poland is stable and it is the biggest politically stable country in the eastern and central Europe that is a good sign for companies for successful long-term investments. It is a nation with a suitably founded system of democratic government. There are numerous tax reliefs given by the European Union that attract many entrepreneurs for offshoring of their business processes. The reliefs in taxes and other concessions in tariffs further lead to saving costs, produce more consistent resources, and import inexpensive products. It has its membership with the EU (European Union), WTO (world trade organization), EEA (the European economic area), NATO (the North Atlantic treaty organization), and others, which has boosted its attractiveness for the companies to offshore in Poland. Furthermore, there is less intervention of the government in the private sector that is a good sign for businesses. However, despite these strengths, there are weaknesses in the form of work permits and the suitable visa required for the offshoring companies. Moreover, the nation has a poor extent of the direct liability index (Hansen, Mena & Aktas, 2019).

Economic

There is no doubt that Poland has a robust economy has been ranked as one of the best nations for offshoring and investment, by the World and US reports. This nation is the 25th largest market over the globe in terms of population, comes at 23rd place in respect of GDP. Moreover, its economic freedom score is 69.1 that enable this nation to climb the ranks of the moderately free for more than a period. Due to its boom in investment and private consumption, this nation has attained a constant GDP growth rate in the previous 5 years (Surdea-Blaga, 2020).

Culture

There may be an occurrence of misunderstandings when companies from different cultures collaborate with each other. However, Poland has cultural similarities with western countries thus; the problem of misunderstanding in communication cannot take place certainly. Moreover, Poland's developers employ a work ethos that promotes shared language, a direct style of communication, and cultural affinity (Barczyk et al, 2019). It leads to streamlining the workflow and reduce the expensive misinterpretations. Poland organizations give less importance to family values and more focus on the professional status of employees. It means that they have to work for longer hours and little time for family. These people are really hardworking and are trustworthy. The companies that are looking for offshoring in this nation have to be ethnically aware as it will provide them gratitude for the sense of state pride and the duties and customs that direct the business environment.

Education

There are higher values of Poland's educational system that can be seen by its outstanding technical schools, and the universities that offer a treasure of educational talent. Moreover, its technical and mathematics experts are the leaders in the R &D (research and development) over the globe. The students of Poland are well-versed in numerous foreign languages. The staff at the organizations of Poland is creative, innovative, open-minded, and intelligent. This nation is multilingual who knows more than 50 foreign languages and these languages to be leaned in102 universities and colleges, in 59 of Poland’s cities. Therefore, it can be said that it’s highly advanced and the professional education system and enduring tradition is responsible for the quality of the workers in the Polish organizations (Piotrowicz & Kedziora, 2018).

Competence

The competency of the country can be seen in the strategic geographical location of the nation. It means that Poland is a bond between the west and east and provides a great market of significant Europe for transportation and trade. There are numerous trade opportunities in this country due to its geographical location in the center. Moreover, consistent funding from the European Union is responsible for attracting foreign investment. There are business approachable improvements for the minimization of taxes by the Polish government. Furthermore, the polish people are competent to make robust relationships with their counterparts and are extremely trustworthy to them after establishing a trust factor.

Infrastructure

In Poland, infrastructure is not as good as it must be to attract offshoring businesses. The country is struggling to modernize its infrastructures like the internet, roads, railway, and more. The government is putting its substantial efforts into investment in the internet-based projects so that access to it cannot be limited to certain urban. However, the infrastructure development has been improved in Poland as the nation is the home to the R & D centers for numerous international technology companies. It can be said that it has acquired a quality infrastructure with lots of investment in the crucial areas of development (Halemba-Pawlik, 2017).

Analysis of the Philippines

Political

The Philippines has transformed its political system after eras of political isolation and difficulties. The taxes are comparatively less than the rest of the globe, however, not as less as countries of Southeast Asia (Booth, 2019). The government of the Philippines has effectively integrated a support system to hold on to the organization's outsourcing industry. There have been changes in the field of tax policies in form of validation of tax incentives accessible to competent worldwide firms to pay low or nil tax rates when they employ new people, acquire their assets locally, and more. The tax incentive is involved in package two of the inclusive tax restructuring program that aims to decrease the corporate income tax (CIT) and streamline the financial enticements system. The low incentive scheme motivates the businesses offshore to this nation and it enables the firms to build a competitive reputation in the native market.

Economic

It is the fastest-growing economy in Southeast Asia due to the higher amount of foreign investments in the nation. In the year 2019, the GDP growth rate has been declined and reaches 5.9% as per the estimates of the International monetary fund (Edo, Osadolor & Dading, 2019). This is due to the fact that there has been a decline in the investment growth in the nation and the weakening of the external environment. Its economic freedom score is 64.5 that make it the 70th freest nation. There is a need for the nation to boost its economic growth and economic freedom. In order to do so, the government of the Philippines needs to concentrate on lagging index meters of the nation in respect of the rule of law and the regulatory environment (Aldaba, 2019).

Culture

The people of the Philippines "Filipinos" are extremely welcoming and friendly people. Moreover, these people use the non-verbal language in their daily routine in business communications. These are very punctual in the workplace and even render overtime for meeting their deadlines at work. In addition, they are easily adaptable to any type of environment and are hardworking people. In their culture, they call their bosses using the words like “Sir”, “Miss”, “Mam”, and more, rather than just by their first name as followed by western countries. Moreover, they follow a little family-like structure in an organization rather than being formal. They are helpful whenever their peers need help in any respect. Furthermore, they believe that trust is an essential factor for establishing robust relationships in the workplace (Crayon et al, 2017).

Education

It is true that the Philippines is one of the largest English-speaking nations around the globe and claims a ninety-four percent English literateness rate. Talking about its education system, there are annually 400000 graduates coming out from its well professional universities. Since there has been an increase in the operations of offshoring and outsourcing industries in the country, more and more individuals approximately 4 million have already practiced functioning for the external companies. In the Philippines, education is the key push of the government and the education arrangement is constantly being upgraded to stay at average with worldwide ideals. Advanced training and education in numerous fields are given crucial significance by society. Moreover, this nation is a home to trustworthy government and private institutions and campuses that offer specified education across a range of disciplines (Turmudi & Hajan, 2020).

Competence

The Philippines nation has its competence in the outsourcing and offshoring sector. It is due to that fact that initially, it started with the call centers and then enlarged its business operations in the form of back-office processes. It has established the best offshoring centers around the globe. Moreover, it has become a reliable destination for offshoring from all over the world including nations like Australia, the United States, and the United Kingdom. Moreover, the charges of offshoring to this nation are extremely competitive and enable substantial savings on processes costs, and human resources. The talented people of the Philippines are also the competency of the nation. The stabilization in terms of economic growth from the past numerous years is its competency. The government also offers financial incentives in the form of tax holidays, reduced taxes, and duty waivers. These inducements motivate the nations offshore in the Philippines. 

Infrastructure

In the Philippines, there have been constant improvements in the infrastructure. There have been enormous investments of government in improving the office spaces for business processing outsourcing, internet access, and other aspects. The BPO’s in the country are now connected by railways and the highways with the improvements in the transportation infrastructure. Furthermore, this nation has an exceptional information technology infrastructure that can easily manage the offshoring objectives of the company.

Summary of Analysis

 

Economy

Politics

Infrastructure

Education

Competence

Culture

Philippines

It is the fastest-growing economy in Southeast Asia due to the higher amount of foreign investments in the nation

Low incentive scheme motivates the businesses offshore to this nation and it enables the firms to build a competitive reputation in the native market.

This nation has an exceptional information technology infrastructure that can easily manage the offshoring objectives of the company.

In the Philippines, education is the key push of the government and the education arrangement is constantly being upgraded to stay at average with worldwide ideals

The Philippines nation has its competence in the outsourcing and offshoring sector. The government also offers financial incentives in the form of tax holidays, reduced taxes, and duty waivers.

The people of the Philippines "Filipinos" are extremely welcoming and friendly people. Moreover, they follow a little family-like structure in an organization rather than being formal

Poland

Economic freedom score is 69.1. Due to its boom in investment and private consumption, this nation has attained a constant GDP growth rate in the previous 5 years

The political environment of Poland is stable and it is the biggest politically stable country in the eastern and central Europe that is a good sign for companies for successful long-term investment. Moreover, work permits and the suitable visa required for the offshoring companies

Infrastructure is not as good as it must be to attract offshoring businesses. The country is struggling to modernize its infrastructures like the internet, roads, railway, and more

Students of Poland are well-versed in numerous foreign languages. Staff at the organizations of Poland is creative, innovative, open-minded, and intelligent

The competency of the country can be seen in the strategic geographical location of the nation. The polish people are competent to make robust relationships

Poland has cultural similarities with western countries thus; the problem of misunderstanding in communication cannot take place certainly

Recommendation for Selection of Country

The Philippine's nation is preferable Poland to offshore the business processes of the Cisco factories in china. The reason behind this selection is its lowest labor cost for the offshoring experts and it can be matched with the country like India. This country has hourly labor charges for the eight provision professions averaged 13 percent of the United States levels. These are about 1/3rd of the average in the Eastern European countries like Poland. Moreover, this location is best for the offshoring of the Cisco factory as it scores well on its robust English language competencies. There are numerous reasons for selecting the Philippines as the offshoring location. These benefits are as follows:

  • The BPO industry is the one factor that is responsible for constantly increasing the economic growth of the country.

  • It is a traditionally well-suited country with western countries.

  • There is strong support from the government as certain laws have been passed by it to protect the welfare of the experts of business processes outsourcing. Moreover, tax incentives have been increased for them.

  • The nation has best maintained its position as the offshoring destination in the globe.

  • It has been forecasted that the entire income of the BPO sector will be $ 40 bn in the year 2022 and the jobs to be created in the future will reach 7.6 million.

  • The cost of living is low in the Philippines as compared with Poland and due to which Chinese Cisco must offshore its operations in this nation. There are low taxes, rentals, fewer prices of goods, and basic amenities needed for survival.

  • The offshoring of Cisco operations of the Philippines enables it to expand its operations and reach the novel markets and it is freeing up its resources for the other business needs.

  • There are the latest technologies available in the IT infrastructure, internet connectively, and data security. There is no need to worry about Cisco in respect of technology; there is the availability of all the contemporary technology.

  • One more advantage is that there exists a better work-life balance in the Philippines nation. Thus, Cisco does not need to worry about less productivity due to an imbalance of work-life balance. The country has a culture where individuals just need to concentrate on their main responsibilities, rest will be managed by the leaders.

  • Poland is not to be considered for the offshoring of Cisco operation as there are high turnover rates and higher developer costs.

  • Furthermore, the informal family-like culture in the organizations will be nest suites for the Cisco operations rather than a more formal culture.

Conclusion

From the above report on the global value chain decisions for the Cisco business processes to countries Poland or the Philippines, it can conclude that the Philippines will be the best suitable country for offshoring of the Cisco operations. Moreover, it can be inferred that the Philippines have more literacy in terms of English proficiency skills and talented peoples. There are more opportunities for the people as they have already experienced professional jobs in the back-office operations in the BPO sector. It can also be inferred that country has been increasing its economic stability due to the ever-increasing BPO sector growth for numerous years. 

References

Aldaba, R. M. (2019). Mapping the Philippines in the Offshoring Services Global Value Chain. Journal of Southeast Asian Economies, 36(2), 153-182.

Barczyk, C. C., Rarick, C. A., Klonowski, M., & Angriawan, A. (2019). Structuring Organizational Culture to Complement Poland’s National Culture–An Approach for Achieving High Impact Entrepreneurship. The Journal of Applied Business and Economics, 21(2), 11-26.

Booth, A. (2019). 2 Towards a Modern Fiscal State in Southeast Asia, c. 1900–60. Fiscal Capacity and the Colonial State in Asia and Africa, c. 1850-1960, 36.

Crayon, C., Gyurcsak, S. A., Patton, T., & Steigerwald, A. (2017). Managing a virtual project team: Offshoring technical services in the Philippines. International Journal of Global Business, 10(1), 37-46.

Edo, S., Osadolor, N. E., & Dading, I. F. (2019). Growing external debt and declining export: The concurrent impediments in economic growth of Sub-Saharan African countries. International Economics.

Halemba-Pawlik, M. (2017). Offshoring Destination Case of Poland. Przedsiębiorstwo we współczesnej gospodarce–teoria i praktyka, 23(4), 55-67.

Hansen, C., Mena, C., & Aktas, E. (2019). The role of political risk in service offshoring entry mode decisions. International Journal of Production Research, 57(13), 4244-4260.

Hernandez, V., & Pedersen, T. (2017). Global value chain configuration: A review and research agenda. BRQ Business Research Quarterly, 20(2), 137-150.

Piotrowicz, W., & Kedziora, D. (2018). Outsourcing of Information Technology and Business Processes in Poland: Motivations and Environmental Factors. Managing Global Transitions.

Surdea-Blaga, B. (2020). Key factors for selecting an offshoring location. Review of Economic Studies and Research Virgil Madgearu, 13(1), 137-160.

Turmudi, D., & Hajan, B. H. (2020). Education system and English language teaching in the Philippines. Premise: Journal of English Education, 9(1), 73-86.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Supply Chain Management Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

"

5 Stars to their Experts for my Assignment Assistance.

There experts have good understanding and knowledge of university guidelines. So, its better if you take their Assistance rather than doing the assignments on your own.

What you will benefit from their service -

I saved my Time (which I utilized for my exam studies) & Money, and my grades were HD (better than my last assignments done by me)

What you will lose using this service -

Absolutely nothing.

Unfortunately, i had only 36 hours to complete my assignment when I realized that it's better to focus on exams and pass this to some experts, and then I came across this website.

Kudos Guys!

Jacob

"

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?