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With reference to one multinational company that you have studied, describe and explain any two of the following: ➢ Sourcing of raw materials and components ➢ Location of processing units ➢ Location of markets. - Leaving Cert Geography - Question B - 2014
Question B
With reference to one multinational company that you have studied, describe and explain any two of the following: ➢ Sourcing of raw materials and components ➢ Loca... show full transcript
Worked Solution & Example Answer:With reference to one multinational company that you have studied, describe and explain any two of the following: ➢ Sourcing of raw materials and components ➢ Location of processing units ➢ Location of markets. - Leaving Cert Geography - Question B - 2014
Step 1
Sourcing of raw materials and components
Answer
One multinational company that exemplifies effective sourcing of raw materials is Nestlé. Nestlé sources its raw materials from various locations worldwide, ensuring a reliable supply chain for its extensive range of products. The company emphasizes local sourcing to not only minimize transportation costs but also to support local economies.
Furthermore, Nestlé engages in sustainable sourcing practices, which include conducting audits of suppliers to ensure ethical practices and environmentally friendly farming methods. This process guarantees not only quality but also enhances brand reputation and aligns with consumer preferences for sustainability.
Step 2
Location of processing units
Answer
Nestlé strategically locates its processing units in proximity to its key markets. For instance, the company has established several factories in regions with high demand for its products. This geographic strategy reduces transportation costs and enhances delivery times, thus allowing for fresh products to reach consumers rapidly.
Additionally, the placement of processing units in diverse regions enables Nestlé to cater to local tastes and preferences, allowing for the customization of products that resonate with specific markets. This localized approach enhances customer satisfaction and loyalty, contributing positively to Nestlé's overall performance in the global market.