Supply Chain 2C

a). The business of global trade

The business of global trade in international trade means a business whereby a

company trades across the globe. The business of global trade dates back from the
ancient time where people could trade goods over a great distance. In Europe in the
Stone Age period Anthropologists have already established trading that involves long
distance. In times preceding Greek Civilization trading of sea-borne products was
common in many regions in the world. Though such trade where not global business
trades their features where in common with business of global trade. During the sixteen
century all the continents become customarily connected to ocean based
communications. Afterwards in the 17 th century modern business trading followed in
what is termed the Roman times. The essay will analyses the structure and operations
of PPC in the global supply chain while discussing elements, procedures and processes
which are important to the success of business global trade.
In the business of Global trade PPC Ltd company leads globally a the main supplier of
lime, cement together with related products in the Southern Africa. PPC in Africa has
eleven factories of cement and manufacturing facility for lime. These factories and
manufacturing plants and facilities are located in Zimbabwe, Rwanda, Ethiopia, Congo,
Democratic Republic of Congo, Botswana and South Africa. While PPC import raw
materials needed in the production process from different states it also exports most of
its products mainly to the western parts of the world. In terms of resource sharing and
advancement in technology, globalization is credited for the creation of the global village
so that every enterprise becomes interlinked. For example since Zimbabwe is endowed
with lime concentrate it has the capacity to export to other 10 PPC member companies.

Global supply chain is also a factor which is very important for global business trade
success. As such, in situation where several business supply chain such as retailers,
distributors, manufacturer work together to coordinate, plan and control material, parts
and finished goods from suppliers to customers it becomes an integrated process. One
or more of these business supply chain must then operate in different countries.
The improvement in the transport logistics, advances in the production provided firms
with incentive which is great to fragment production processes and to geographically
delocalize them. Global supply chains (GSCs), also referred as global production chain
can lead to strategies that monitors goods that are often produced using intermediate
inputs which originates from several countries which are then extended over to other
developing countries. PPC Ltd implemented this business of global trade in its global
supply chain so as to reduce costs. In terms of Joining the Global Supply PPC
enterprises have the great potential and opportunity to do so. In export led development
it is evidenced at PPC that its pillar is the intergration into the Global Supply chain. For
PPC to be known a global competitive company it is rational to enable the GSCs
functionality so as to obtain hands-on information on quality technology and standards
while modern management know how. As such companies that are utilizing GSCs will
learn quickly on the patterns of demand and consumer preferences even in high income
market. As a result, for developing nations participation in the GSCs will generate
positive externality which benefits the whole economy. These benefits of participating in
GSCs include export diversification, upgrading of productive capacity, technological
improvements and the creation of direct or indirect employment. In the case of PPC, the
positive externalities will result in the attractiveness of the company to receive more of
foreign direct investment. As such all the gains can be explained by the acute interest
by policy makers to utilize the link that exists between the GSCs and the private sector.
Because of the link of the private sector and GSCs Gereffi and Korzeniewicz (1994),
observed that in today’s global factory, the production of a single commodity often
spans many countries, with each nation performing tasks in which it has a cost
advantage.
There is evidence of an important element of the global supply-chain operations or
management in the case of PPC Ltd. As posited by Soni and Kodali (2010), in order to
intensify firm’s performance drivers in supply chain management ought to be considered
because they are vital. The drivers which are key in performance of supply chain in PPC
Ltd include pricing, sourcing, information management, distribution, and inventory,
transportation and facility locations. As such if PPC is able to manage it self-better it will
have the capacity to improve its performance and maximize on profits.
In conclusion, the global trade is of great importance if one is to consider supply chain
and operations for the growth of multinational companies in the Global Supply chain. It
ensures reduction in cost and profit maximization in the supply chain management of
PPC Ltd. Global trade also helps in adaptation of changes in technology.

b). Global trade controls

Controlled goods movement in whatever form be it intangible technology transfer,
brokering, Transit, re-export, transshipment and exportation are usually subjected to
regulations. For comprehensive licencing screening of all the movements of goods
which are controlled, the Global Trade Control assist by providing policy standards. As
such, from various points of origin to the any destination accrose the globe GTC will
accelerate the determination process on export permits or licenses (Dani and Deep,
2010). Companies like PPC that processed the Global supply chains will realize that
depending on country of origins and available trade controls factors that affects trade
controls differs. For example trade controls for PPC can varies with country one branch
is situated. Global Trade Controls enables PPC Ltd to determine requirements of trade
that includes permit or license or permit to export or import, report filling, an exception or
exemption, export general authorization and record keeping of a specific destination
based upon classification codes by EU, A.U, SADAC or other several countries specific
trade controls.
Conducting business undertakings through borders is considered to be more complex.
Organizations must formulate multifaceted trade policies, tariffs, embargoes and
sanction in a number of countries. When the business creates Global Trade Controls,
Global supply chains will evolve to become more complex. Related regulatory
inspection and enforcement of government actions have higher chance to increase to
be at highest level. Therefore, for Multinational organizations that include PPC Ltd
significant challenges are being faced in the process of navigating today’s global trade
landscape. Global anticorruption law, handing restriction, economic sanctions, exports
and imports control laws have made seamless trade even more difficult and risky. PPC
Ltd, processes a team experts who may be called on-demand so as to simplify the
challenge experienced in a complex global trade. To conduct risk assessment in the
business of global trade the company utilizes legal counsel and compliance officers. To
enhance compliance with dynamic economic sanctions, export control and customs, the
company utilizes solutions which suits global business centric. As such whatever the
context, to help to unravel the existing complexities in the global trade, PPC draw upon
its professionals who collaborative based on their experiences in negotiation with
regulators in the government.
Doing business among the foreign market implies accepting many challenges which are
often non-existent in the domestic market (Hoeing, 2011). These challenges in this
essay are therefore referred as international business constraints. There are numerous
of international constrains that are associated in the operation of PPC Ltd and are as
described next.
Different trade patterns
Among different countries across the globe PPC Ltd has to deal with different global
business patterns. Accordingly, the company must take into account such differences in
business policies for respective country that governs exports and imports. As such, in
international trade such practices and policies are considered as constraints for
business.
Regulatory measures.
It is a fact that every nation at a particular point can export the surplus of manufactured
goods, agricultural produce and natural resources. This implies the countries can only
imports products or goods which it has little or no capacity to manufacture or produce
within its borders. As such, it is justifiable for the imposition of constraints such as
regulatory measures like tariff barriers (custom duties), quota restrictions, non-tariff
barriers, trade agreements, technological regulations, foreign exchange restrictions,
administrative regulations, preferential arrangements, consulter formalities, state
trading, and joint commissions.

Lop sided development of developing countries

Countries which are developed are normally equipped with sophisticated and advanced
technologies which have the capacity to transform raw materials to be finished goods at
a large scale. On the other hand, in developing nations where most of PPC’s operations
are located they lack vibrant technological knowledge and even latest equipment’s. In
international business this will result in lop sided development.
National policy of development
There are certain national policies that inhibit trade. For countries that intend to be self-
sufficiency, they are likely to follow a national economic policy that encourages
importation of capital goods that is characterised by sophisticated technology. This will
be intended to restrict imports by locally producing more of consumer goods which are
considered less important for continuous importation. Therefore, this will affects PPC
operations as some of its raw materials ought to be imported to avoid production
stoppages.
Procedural difficulties
Different nations have advanced different practices, procedures and documents that
enable the regulation of export trade. Keeping in touch with national objectives there are
some regulations on foreign exchange which were formulated that posed some
procedural problems to importer and exporters.
According to Cachou (2005), global trade, also known to be international trade, is simply
the exporting and importation of goods and services through international boundaries
(Cachou, 2005). This also impact global trade in resources. The availability of quality
natural resources such as land, water, energy and materials are essential to human
well-being and sustenance.
The uneven sharing of such resources, due to climatic and geological factors among
others, has led traditionally to human and business entity settlements in geographies
where the required resources were accessible and plentiful (Wisner et al. 2006). PPC
Ltd cement manufacturing branches are situated where resources need for cement are
found. If resources are assumed to be that plentiful, the process of settlement would
have created population centres that are often turned into industrial regimes which then
dependent on the immediate natural environment of resources. The resulting depletion
in local availability created a demand for resources from peripheral territories. This
pattern also applies resources which are non-renewable resources such as petroleum,
coal, iron, copper and silver, which play a central role in the later stages of
development. Therefore, in physical terms, there is an inevitable asymmetry between
PPC Ltd and population centres thus, PPC extract raw materials from nature and
process them to a certain degree for their own consumption, on the one hand, and for
use by the other PPC branches outside the country. PPC Ltd processes limited raw
materials that can be extracted such that they process the extracted raw materials
further and consume them with subsequent delivery of manufactured products to many
countries. Historically, urban centres are characterised by specialization in commodities
on which resources are easily accessible through economic exchange that promotes
trade with other centres (Pomeranz and Topik, 2006).
The activity in modern business enterprises are conducted on the conditions of global
integration in the domestic economy into the world economy (Poliscshuk, 2011).
Therefore, PPC Ltd’s economic activities are often accompanied by unstable trends
which affect dynamics and condition on the development of industrial-economic system.
This situation generates new pre-requisites for PPC operation, ability to quickly react or
adapting on factors on a changing market environment which then allow optimal use of
available resources so as to achieve organizational goals. Accuracy and objectivity in
the determination of business level affect managerial effectiveness in decisions that
depend on the activity of using financial and material resources, the personal
development level, market activity and innovation to mention but a few. Such
perquisites determine the research of business activity as a system management
category that consists of many indicators of individual spheres of enterprise’s activity,
and its formation depends on a set of management methods and procedures.

Question 2
a). In today’s global economy, ensuring compliance with statutory regulations and legal
requirements is a critical part of doing business and, in turn, integral to the success of
international trade. In order for PPC Ltd multinational cement company do its operation
it should comply with a number of regulation and legal requirement. The following legal
requirements and statutory regulations ought to be considered when PPC Ltd is
exporting goods outside the country.

PPC ought to possess an Exporter registration and Export permit so that it will be able
to export its products to the international market in other nations. Moreover, PPC
company must have an Import license so that it can imports required as raw materials
in the production process. PPC must also processes an International featured
standards-certificate that ensures it as a certified companies that manufacture products
that complies with the specifications agreed with the customer with continuous
improvement being of great priority. The quality specification in South Africa is always
check-ups by the Consumer Council.

There are also statutory regulations on the use of road transport in the process of
moving goods. For example, the Roadworthy requirement allows all vehicles must be
roadworthy showed through producing of COF (Certificate of Fitness). In some
instances the vehicle mustn’t exceed the permissible axle masses (No overloading).

b). There are numerous roles of customs authorities and border agencies in the
organization’s international trade process. These roles intent to regulate international
trade among nations. Customs authorities and border agencies perform key functions
for the country's development and play a leading role within the stability and
development of foreign trade. The tasks that can fall within the customs and border
agencies officials’ include:
 Collection of revenue (perhaps the most vital and oldest function of Customs)
 Trade statistics collections
 preventing illegal imports and exports through for instance the interdiction of
prohibited substances, protection of cultural heritage)
  processing of cargo, including physical examination and documentary checks
(including at international mail centres and air and sea ports)
 Coastal and land borders surveillance so as to prevent activities of smuggling
activities
 protection of external borders from illegal aliens, drugs and other criminal
activities
 responding quickly to the requirements of the globalized world, particularly to the
requirements for the implementation and management of free trade agreements
 securing and facilitating legitimate global trade and travel
 controlling quality and safety of products which enter markets
 protecting agricultural industry and food supply and agricultural in from diseases
and pests
 protecting intellectual property rights
 improving quality of services to facilitate foreign trade.
c). There are procedures and special requirements that need to be taken into account
when PPC Ltd is moving its goods internationally. The first procedure is before
exporting goods from South Africa, PPC need to submit a Customs Declaration Form
(SAD 500) to the Commissioner of Customs, which is a sub-department of the South
African Revenue Service (SARS). The goods may leave South Africa only once this
document has been approved. The following are the requirements needed for PPC to
move its products internationally.
Exchange control forms:
The government of South African still applies strict controls regarding the movement of
foreign currency in and out of the country.
Commercial invoice:
The commercial invoice is needed because it is the bill that the exporter provides to the
buyer, which provides details of the goods sold and the terms of the sale.
Certificate of origin:
In addition to a commercial invoice, certain governments require a certificate declaring
the origin of the shipment.
Bill of lading:
A bill of lading refer to the contract between the carrier and the exporter.
Inspection certification:
Some buyers require a certificate of inspection, which refer as a document which details
specifications of the shipment. These certificates are usually obtained from a third party
organization.
Insurance certificate:
The insurance certificate should accompany the shipment. If the seller provides
insurance,
Export permit:
Export permits assist so as to control the prohibited and even stolen goods. As a result,
this permit is required when regulated goods.
d). The operational and security requirements that influence the PPC Ltd’s international
movement of goods and people. The origin of transport security involves various
dimensions with potential measures which are dimensions and measures. Dimensions
here concern the information on the integrity of the passengers or cargo, the route, and
the information systems (IT security) managing the transport chain. Measures is the set
of procedures that can be implemented to maintain the integrity of the passengers or
cargo, namely inspections, the security of facilities and personnel, as well as of the data
and the supporting information systems.
The growth in passenger traffic and the development of the hub and spoke networks
has inistill a great deal of strain on the security process. There were wide  disparities in
the effectiveness of passenger screening at different checking points, and because
passengers were being routed by hubs, the number of passengers in transit through the
hub airports grew significantly. Concerns were being raised, but the costs of improving
screening and the need to process ever-larger numbers of passengers and maintain
flight schedules caused most carriers to oppose tighter security measures.

3.
a). How the PPC evaluates and plans the resources required to ensure the
optimum functioning of every link in the supply chain.
Global supply chain diagram for PPC Ltd

The figure shows that supply chain management is simply the management of network
of businesses which are interconnected but are involved in a common business goal. As
such, supply chain management has to ultimately provide service or product packages
which is required by the end customer (Harland, 1996). Overal, supply chain
management is composed of full spectrum of movement and raw material storage,
inventory that is work-in-progress together with goods which finished from the view point
of consumers. This is what ultimately forms what we now know as the ‘supply chain.
PPC Ltd evaluates and plan its resources that it required to ensure the optimum
functioning of every link in the supply chain.
As such, supply chain is considered to be the collection of steps which a company
pursue so as to transform components which are raw to become final product (Cachou,
2005). This means, planning is the first stage in supply chain management. As such,
PPC Ltd have to plan or strategize so as to address how a certain type of product or
service will then then meet the needs of the final consumer. Therefore, a profitable
supply chain significantly focuses on planning.
Therefore in order to meet consumer demand for its products PPC in its strategic phase
must manage resources which are necessary. Therefore supply chain management
involves the development set of metrics that have the capacity to directly the supply
chain for cost effectiveness while delivering high quality products to consumers.

The other stage during supply chain management at PPC is development which
consists of building a healthy and strong relationship with raw materials suppliers. This
stage will not only comprises of the identification of suppliers who are reliable but also
methods of planning for shipping, delivery, and payment. For PPC ought to choose
suppliers that will deliver goods they need in the production process. Therefore, PPC
supply chain managers will have to develop a set of pricing, delivery and payment
processes for suppliers. Hence, supply chain managers at PPC must put together
processes that will enable management of their inventory that includes receiving and
verifying shipments, transferring them to the manufacturing facilities and authorizing
supplier payments.
More so the other stage is manufacturing phase. Supply chain managers ought to
schedule activities which will be necessary for production, testing, packaging and
preparation for delivery. This stage is the most metric-intensive step in PPC supply
chain. This step will ensures that PPC is capable for measuring production output as
well as productivity of worker. During this manufacturing phase the company products
are being manufactured then tested before being packaged for delivery to wholesalers
and retailers (Chad and Bobbitt, 2008).
The other important phase is the delivery, whereby orders are made by customer with
subsequent planning of delivery of the goods by PPC management of PPC. In SCM this
is also called the logistic phase as it involves companies coordinating orders from
customers through the development of warehouses networks with the intention of
distributing products to customers. Supply chain management has three levels of
activity done at PPC, with different parts upon which companies focus and these
are strategic, tactical and operational. Strategic activities include building relationships
with suppliers and customers as well as integrating information technology (IT) within
the supply chain. Tactical decisions focus on adopting measures that will produce cost
benefits such as using industry best practices (Kull and Closs, 2008). Therefore,
Monitoring and studying competitor activity and making decisions regarding production
and delivery would fall under the tactical category.
b). Why it is important for resources to be compatible when trading
internationally.

According to Grossman (2013), global resources are being subjected to massive

depletion such that between the period of 1990 to 2020, the world’s forest is said to
have fall from 19 million hectares to 13 million-this has even caused water withdrawal
rate to triple for the last 50 years such that species are subjected to be extinct more
than what has been historically recorded (Shogren et al, 1999). Pollutants are being
released into the air and water at unprecedented levels. It is important for resources to
be compatible when trading internationally. Firms are becoming increasingly
interconnected with firms in the same line of business such that networks are being
created to access value enhancing resources. In such business networks, business
firms will then to both deal with competitors and collaborators. As such this implies that
if a company is to understand the deviations and variance on performance this will
require managers to look at their networks which is the integrated part of its external
environment (Hakansson and Snehota, 2006).

According to Cloodt (2010), a firm that engage in business partnership will be

embedded in well-connected and large business networks which enable acquiring of
resources which are scarce. As a result of engagement with external environment
resources which complement internal resources will lead to the improvement in firm
performance and even the innovativeness capacity. Also through partnership the
company will acquire important technological innovations and regulatory harmonization.

Resource compatibility also creates strategic challenges that may have a negative
influence on a firm's performance. When resources are to be exchanged among
companies, companies to a significant extent lose control on conditions which have the
capacity to turn their resources to be a source of competitive advantage. Sharing
resources with partners also makes them more dependent on and vulnerable to the
discretion and expertise of others, which may create high coordination costs, slow down
their capital accumulation and may create over embeddedness, which reduces their
ability to enter into new more valuable partnerships (Hagedoorn and Frankort, 2008). In
other words, the potential costs of being part of a network may reduce a firm's
competitive advantage, and hence their performance. When engaging in collaborative
and competitive behavior which co-exists in business network, resource compatibility
will depend on the company’s strategic actions (Clarke-Hill, Li and Davies, 2003).
Collaborative and Competitive behaviors will obviously create different threat and
opportunities for a firm. Behaviors which are Competitive among firms will create an
environment which is so competitive and is characterized by rivalries which are
constant, competitive bargaining, and the use of power so as to compete for available
scarce resources and markets (Clarke-Hill et al., 2003).

Resource compatibility will create an environment which is collaborative that ideally is

characterized by trust, mutual benefits, sharing and reciprocity. These characteristics of
networks that exist in business are very important in order to take into account for firms
that share their resources efficiently and effectively so as to leverage on their resources
and those of their partners, which will result in competitive advantage. Both
perspectives are therefore considered to be more concerned with the possessing of
critical resources as they are source of competitive advantage, be it rooted in internal or
external resources, and undervalue the importance of strategic actions (Madhok and
Marques, 2014). Although external and internal resources are sources of competitive
advantage, competitive advantage of a firm may disintegrate with emerging resource
compatibility, business opportunities and threats in its business network.

Available resources and markets are limited, which means that firms engage in constant
rivalries with other firms to outperform each other. Opportunistic behavior may emerge
as a result of resource sharing and resource compatibility. Sharing resources may also
cause firms to imitate each other. Changing business opportunities, constant rivalries
among competitors and opportunistic behavior among partners may dissipate a firm's
competitive advantage and have an adverse effect on its performance.

c). Different trading and financial methods that PCC Ltd may use in international
trade.

Payment-in-advance
Payment-in-advance is a pre-export trade finance type, which involves an advance
payment or even full payment from the buyer before the goods or services get
delivered. This is risky, and although it can help the supplier in terms of cash flow
constraints, it is risky for the buyer in case the goods do not get delivered. Advance
payment is a popular option, but pertains to non-payment or credit risk for the supplier.
The positive contributing factors of utilizing Payment-in-advance
 With this payment method, the exporter can avoid credit risk as payment is
normally received prior to making of the transfer of ownership on goods.
The negative contributing factors of utilizing Payment-in-advance
 Require payment to be advanced such that on the buyer viewpoint it becomes
the option which is least attractive because it create problem of cash flow.
 Foreign buyers using this method are also gravely concerned on the fact that
goods will not be sent even if the payment is made in advance.
 Exporters that hold on this method of making payment as the only method when
doing business may find in serious problem as they lose out to competitors who
are willing to offer payment terms that are attractive.
Working capital loans
These are also known as  business loans which can be used to finance the upfront cost
of doing business; anything from funding the cost to purchase raw materials, right
through to operational costs and labour / staff cost. These short-term loans are normally
issued on a 6 month tenor. These loans are a bit different from the usual online loans.

The positive factors of working capital loans

  The firm will have the money to deal with the financial crisis right away.
 The firm can borrow and repay it quickly
 The firm keep full ownership of the company

The negative factors of working capital loans

 There is need to pay the money back
 May be required to bring collateral
 May be charged high interest

Overdrafts
An Overdraft is an easy to use facility which is often readily available on business
current accounts. It enables a company to go ‘overdrawn’ to a certain value, as defined
and agreed with the business bank account. The credit line of a business is likely to be
extended as an outcome of overdrawing. Simplicity and flexibility are the primary
benefits of utilizing this overdraft facility. However, one needs to be cautious about
being charged with a much higher rate of interest.
The positive factors of overdrafts
 An overdraft is considered to be flexible with firm only borrowing what it need
making it more cheaper compared to a loan.
 It can be arranged very quickly.
 There is no any charge when one payoff earlier than expected on the overdraft.
 It do away will all possible negative factors in working capital loans
Negative factors of overdrafts
 Overdrafts can be secured against assets that PPC have.
 The bank can charge PPC if it exceed its overdraft limit without necessary
authorization.

Factoring
Factoring is a type of post-export finance based on receivables. Suppliers that are
looking at balance sheet and also off balance sheet funding to free up working capital
within the business often use factoring to optimize a company balance sheet. Factoring
involves a funder or financial institution who would typically procure invoices and
accounts receivables of the supplier. Factoring accounts for approximately 80% upfront
payment and involves short-term receivables.
The positive factors of factoring
 Factoring has the capacity of providing quick boost on cash flow.
 It supports smoother financial planning and cash flow.
 Often a good number of customers respect factors by paying more quickly.
Negative factors of overdrafts
 Disputes and queries may impose negative impact on the available funding by
the company.
 The cost will obviously mean reduction in company profit margin based on each
respective order.
 It can reduce the scope for other borrowing as book debts is often not available
as security.
Forfaiting
Trade finance based on receivables are another tool, known as Forfaiting. Forfaiting
and factoring are can be distinguished by the tenor / duration of financing. Although
both are a type of post-export finance, the exporter does not have any recourse with
Forfaiting. Once the buyer receives the goods as per the pre-set terms, Forfaiting
supports a virtual elimination of risk to be performed by the supplier. The buyer’s bank
tends to support the receivables, which enables the supplier to eliminate the transaction
from the balance sheet thus backing the financial ratios.
The positive factors of forfaiting
 Exporter will get higher liquidity since the assets get simply renewed into money
on the presentation of the bill or promissory note.
 The risk of exchange rate fluctuations is non-existent
 It is very easy to alter so as to suit the requirements of the exporters.
The negative factors of forfaiting
  From exporter point of view it is very expensive since banks often take high fees
for forfeiture thanks to high risks concerned in it.
 There is no secondary marketplace for these kinds of instruments thus there is
lack of liquidity for these instruments.
d). A diagram to illustrate the links in the organisation’s global supply chain.

Base on the figure above, supply chain is merely a collection of suppliers which required
in order to create one identifiable product for a company. Towill and Naim (1992) define
it to be a sequence of production facilities, material supplies, distribution service and
final consumers interlinked. This implies each supplier will be linked in a chain like
relationship so as to create monetary gains. Supply chain management is the collection
of theories, methodologies and practices which then go assist in keeping a supply
chain continuously running so as to improving on efficiency for the benefit of most, if not
all of the links. Supply chain integration is therefore, business strategy which brings as a
good number of links of the chain so as to create closer working relationship with each
other.
The goal of SCM is to improve production time, response time, reduce waste and costs.
This implies any identifiable link of the chain will create significant benefits. Integration
therefore is possible to emanate form merger with another friendly firm in the supply
chain, or loosely by sharing information so as to work more exclusively with particular
customers and suppliers. As such, the supply chain won’t be practically owned by one
firm, but many of them that links and operate almost as if they are one company. The
table below shows an effective supply chain with their respective management linkage
functions at PPC Ltd.

Original sourcing or extraction of raw materials Purchase/supply partnering and

material management.
Refining or manufacturing materials into basic Manufacturing
parts

Assembling basic parts into finished products Manufacturing/ re-manufacturing

assembly
Selling finished products to end users Customer analysis and demand
and or leading time management.
Delivering finished products to end users or Storage and transportation and or
consumers order fulfilment

e). The different types of resources at PPC Ltd which enable international trade.
Physical Resources
Physical resources are considered tangible assets that can be used by PPC to create
value to customers. Physical resources can include distribution network, production
tools, inventory, buildings and equipment that are vital to the proper functioning of your
business. Physical resources are important for the operation of the organization as lack
of its inventory will give torrid time for the company to efficiently operate.
Human resources
Employees are considered the most undervalued assets of any organization. They are
important to the operation of any organization without which organizational activities are
disrupted. The great creativity and knowledge in needed in services provision such that
human resources is considered very important. Human resources are also important in
customer service and assistance to understand the nature of the customer's problem
and offer individual solutions. For example, PPC Ltd truckers are human resources in
which combine with physical resources, such as trucks, to deliver products to PPC
customers and create a unique PPC experience
Intellectual resources
These are the types of business resources which are nonphysical and intangible in
nature like business partnerships, copyright on important vital materials, brands of the
firm and patents on the product. Customer knowledge and data in any organisation is
an example of intellectual resource.
Financial resources
These obviously incudes, credit and cash combined with the ability to have options of
stock plans for the employees in an organization. Most of the businesses have financial
resources utilized and/or budgeted on a regular basis. However, few companies will
have extremely strong financial resources such as the banks which are based entirely
on financial resources and use them as a key resource.

There are business activities that are done by PPC Ltd in order enable
international trade.
Marketing
This department is responsible for market research and for analyzing the results of such
research so that consumer wants can be correctly identified. This information will then
be discussed with other departments of the business so that the right product decisions
are made. Once a product is available for sale, the marketing function will have to make
important decisions concerning its pricing, how and where to promote it and how to sell
it and distribute it for sale.
Finance
This function has responsibility for monitoring the flow of finance into and out of PPC
Ltd, keeping and analysing accounts and providing financial information to both senior
management and other departments. Without adequate finance, no effective decisions
can be made within the other functional areas, so finance is a key division of any
business.
Human resource management
Human resource (HR) management identifies the workforce needs of PPC Ltd. The HR
recruits, selects and trains suitable staff while as providing motivational systems that
help retain staff and encourage them to work productively. It also draws up employment
contracts and also covers the redundancy or redeployment of staff if these become
necessary.
Operations management
Once known simply as the ‘production function’, operations management has
responsibility in ensuring resources are adequately available for production,
maintaining production and quality levels so as to achieve high levels of productive
efficiency.

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