Global Sourcing
Takeda Pharmaceuticals is interested in advancing its activities through sourcing various services including research, manufacture and distribution. It aims to take the full advantage of sourcing with the need to improve its productivity and ensure that it meets the needs of various customers in the industry, effectively (Yeo & Saboori-Deilami, 2017). However, different cultural challenges exist in global sourcing. These challenges might bear a negative impact in light with the performance of the company.
One of the challenges regarding global sourcing is the language barrier. For example, China acts as a significant sourcing country. Companies like Takeda would wish to establish their operations in the country, owing to the low cost of labor in the country, and the technological advancements experienced within. However, the language barrier between China and Japan, where the headquarters of the company are, might seem to be a challenge (Yeo & Saboori-Deilami, 2017). As a result, there is the possibility that the company might fail to obtain significant benefits of sourcing from the process. There is a high risk that the rate of decision-making will be slow. It will, therefore, not be possible for the management to be aware of the best approaches which it needs to adapt to improve the performance of the company. The problem might be solved by having Chinese, Japanese and English translators to ensure that communication is effective. Don't use plagiarised sources.Get your custom essay just from $11/page
Another challenge is that China has a culture of failing to have a well-defined intellectual property regime. As a result, there is a risk that Takeda might lose some of its crucial innovations to China. The situation would result in counterfeits of its products, finding their way to the market, thereby, impacting negatively on the level of profitability which the company might attain (Yeo & Saboori-Deilami, 2017). The situation would, therefore, bear a negative effect on the ability of the company to fully explore sourcing. The problem might be mitigated by adequately safeguarding the patents through a contract signed with the Chinese sourced firms.
Reference
Yeo, C., & Saboori-Deilami, V. (2017). Strategic challenges of outsourcing innovation in global market. Asia Pacific Journal of Innovation and Entrepreneurship.