Managing a global supply chain is a logistical and ethical minefield. Students investigate why businesses choose to outsource (using third parties) or offshore (moving their own operations abroad). While these moves can significantly reduce costs, they also increase the risk of ethical scandals, such as child labour or poor working conditions, which can devastate a brand's reputation in the UK market.
National Curriculum Attainment TargetsAQA A-Level Business 3.9.4Edexcel A-Level Business Theme 4.3.1
Groups are given a 'scandal' (e.g., a factory fire or environmental spill). They must trace the supply chain back to a major UK brand and draft a crisis management plan to protect the brand's reputation.
What are the benefits of offshoring and outsourcing?
Debate whether a business should stay with a cheap but 'ethically questionable' supplier or move to a certified 'Fair Trade' supplier that will force a 20% price increase for customers.
How can businesses ensure ethical practices in their global supply chains?
Stations provide different business scenarios. Groups must decide whether to outsource, offshore, or keep production in the UK, justifying their choice based on cost, quality, and ethical risk.
What is the role of corporate social responsibility in global business?
Outsourcing is *who* does the work (a different company). Offshoring is *where* the work is done (a different country). You can offshore without outsourcing. Using a simple matrix helps students keep these clear.
Ethical sourcing is just about avoiding bad PR.
While PR is a factor, ethical sourcing can also improve supply chain reliability, attract 'ethical' investors, and appeal to the growing segment of conscious consumers. Peer-researching the 'triple bottom line' helps broaden this view.