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Logistics and Supply Chain Management: CEOs in Times of Crisis

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The internal analysis of risk in a supply chain includes considering the consequences of recalling a product which affects not only the brand image of the firm but also brings suppliers activity disruption where customers feel the need to alter their buying trends.   With such an unstable attitude on part of the consumer,   the firm experiences market destabilization and risk the propagation of the recall scandal along with the threat to the distorted national image of the country where damage can incur to the extent that results in falling exports and strained international relations.

Components of the internal analysis of the supply chain crisis deal with individual links whereas the external analysis requires consideration of the whole chain together. Dependencies of one firm may be a cutting edge for the other. Therefore, a firm in crisis aims to analyze and detect the dependencies so as to examine how an interruption in one part of an organization could affect the ability to supply goods and services (Elliott et al. 2002, p. 84). Dependencies for a supply chain are significant in assessing where and what went wrong in the firm because dependencies entail one activity to be preceded by another and in case one activity fails, all other activities associated or linked with it fails.

For example, supplying consumer goods in a market requires the production and transportation of every single unit from a factory to the market during the process of which are several dependencies that escort to potential points of failure. Thus the whole process is interdependent upon the availability of raw materials, to the extent where the processing instruments are required and lorries to transport the finished goods.

  SCM makes it essential to identify the true nature of the most recent competition and the factors which serves to be the catalyst of competitors. Such factors can be explored on the basis of how firms identify competitors and how they use logistics to position and obtain a competitive advantage. In this context redefining marketing strategies is important to analyze the competitive positions of rivals.  

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