The Logistics Management and Strategy of The Enterprise Globalization

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• Since 1979, the World Economic Forums annual
  Global Competitiveness Reports have examined the
  many factors enabling national economies to
  achieve sustained
• economic growth and long-term prosperity. Our
  goal over the years has been to provide
  benchmarking tools for business leaders and
  policymakers to identify obstacles to improved
  competitiveness, stimulating discussion on
  strategies to overcome them.
• In other words, more competitive economies tend
  to be able to produce higher levels of income for
  their citizens.

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First pillar Institutions
The institutional environment forms the
framework within which individuals, firms, and
governments interact to generate income and
wealth in the economy. The importance of
institutions is not restricted to the legal
framework. Government attitudes toward
markets and freedoms and the efficiency of its
operations are also very important Although the
economic literature has mainly focused on public
institutions, private institutions are also an
important element in the process of creation
of wealth.
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Second pillar Infrastructure

• Extensive and efficient infrastructure is an
  essential driver of competitiveness.
• Effective modes of transport for goods, people,
  and servicessuch as quality roads, railroads,
  ports, and air transportenable entrepreneurs to
  get their goods to market in a secure and timely
  manner, and facilitate the movement of workers to
  the most suitable jobs.
• Economies also depend on electricity supplies
  that are free of interruptions and shortages so
  that businesses and factories can work unimpeded.
• Finally, a solid and extensive
  telecommunications network

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Third pillar Macroeconomic stability

• Firms cannot make informed decisions when
  inflation is raging out of control. The
  government cannot provide services
• efficiently if it has to make high-interest
  payments on its past debts.

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Fourth pillar Health and primary education

• A healthy workforce is vital to a countrys
  competitiveness
• and productivity.Workers who are ill cannot
  function to
• their potential, and will be less productive.
  Poor health
• leads to significant costs to business, as sick
  workers
• are often absent or operate at lower levels of
  efficiency.
• In addition to health, this pillar takes into
  account
• the quantity and quality of basic education
  received by
• the population, which is increasingly important
  in
• todays economy.

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Fifth pillar Higher education and training

• Quality higher education and training is crucial
  for economies that want to move up the value
  chain beyond simple production processes and
  products.
• The extent of staff training is also taken into
• consideration because of the importance of
  vocational
• and continuous on-the-job trainingwhich is
  neglected
• in many economiesfor ensuring a constant
  upgrading of workers skills to the changing
  needs of the evolving economy.

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Sixth pillar Goods market efficiency

• Countries with efficient goods markets are well
  positioned to produce the right mix of products
  and services given supply-and-demand conditions,
  as well as to ensure that these goods can be most
  effectively traded in the economy.
• This can create an important competitive
  advantage, as it forces companies to be more
  innovative and customer oriented and thus imposes
  the discipline necessary for efficiency to be
  achieved in the market.

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Seventh pillar Labor market efficiency

• The efficiency and flexibility of the labor
  market are
• critical for ensuring that workers are allocated
  to their
• most efficient use in the economy, and provided
  with
• incentives to give their best effort in their
  jobs.
• Efficient labor markets must also ensure a clear
  relationship between worker incentives and their
  efforts,

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Eighth pillar Financial market sophistication

• Therefore economies require sophisticated
  financial markets that can make capital available
  for private-sector investment from such sources
  as loans from a sound
• banking sector, well-regulated securities
  exchanges, venture capital, and other financial
  products.

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Ninth pillar Technological readiness

• In particular, information and communication
  technologies (ICT) have evolved into the general
  purpose technology of our time,14 given the
  critical spillovers to the other economic sectors
  and their role as efficient infrastructure for
  commercial transactions.

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Tenth pillar Market size

• The size of the market affects productivity
  because large markets allow firms to exploit
  economies of scale.
• domestic demand in determining the size of the
  market for the firms of a country.

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Eleventh pillar Business sophistication

• When companies and suppliers from a particular
  sector are interconnected in geographically
  proximate groups (clusters), efficiency is
  heightened, greater opportunities for innovation
  are created, and barriers to entry for new firms
  are reduced.
• Individual firms operations and strategies
  (branding, marketing, the presence of a value
  chain, and the production of unique and
  sophisticated products) all lead to sophisticated
  and modern business processes.

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Twelfth pillar Innovation

• Firms in these countries must design and
• develop cutting-edge products and processes to
  maintain a competitive edge.

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• After improving last year, Turkey (63rd) has
  dropped by 10 places in the rankings this year.
  Turkey continues to benefit from its large
  market, which is characterized by relatively high
  competition (46th).
• However, some more basic issues must still be
  tackled,
• such as upgrading the quality of infrastructure
  (especially
• ports and the electricity supply), improving the
• human resources base through better primary
  education
• and better health care (78th), addressing the
  burgeoning
• inefficiencies in the labor market (125th), and
  reinforcing
• the efficiency and transparency of public
  institutions.

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Pakistan

• Pakistan, at 101st place, benefits from its large
• market size (ranked 29th overall). However, a
  number of
• competitive weaknesses are hindering its ability
  to fully
• benefit from the potential economies of scale,
  mainly
• related to the human resources base.
  Specifically,
• Pakistans rankings are low in the pillars
  measuring
• health and primary education (116th), higher
  education
• and training (123rd), labor market efficiency
  (121st), and
• technological readiness (100th). In addition,
  there has
• also been a measurable weakening over the past
  year in
• the perceived quality of public institutions.

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Middle East and North Africa

• The competitiveness of most Gulf countries
  covered
• by the GCI shows a robust upward trend. The most
• competitive among them, Qatar, 26th overall, has
• moved up by five places since last year, buoyed
  by the
• countrys consistently well assessed
  institutions, but also by advances in the
  functioning of financial markets, as well as
  enhanced innovative capacity.

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