Download - Bec doms ppt on international business
International Business
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IntroductionSupply chain management: the coordination
of materials, information, and funds from the initial raw material supplier to the ultimate customer
Logistics (also called as materials management): that part of the supply chain process that plans, implements, and controls the efficient and effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customers’ requirements
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Global Manufacturing Strategies
Global supply chain: links the suppliers’ suppliers with the customers’ customers, accounting for every step of the process between the raw material and the final consumer of the good or service
The success of a global manufacturing strategy depends upon: Compatibility Configuration Coordination and Control
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Manufacturing Compatibility
Compatibility: in the context of manufacturing strategy, the degree of consistency between a firm’s foreign direct investment decisions and its competitive strategy
Offshore manufacturing: manufacturing
activities that occur within facilities of a firm that lie beyond the borders of its home country, i.e., foreign direct investment made specifically for the purpose of serving a firm’s domestic market
Maquiladora is an example of offshore manufacturing
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Manufacturing Configuration
The three basic configurations that MNEs consider en route to developing their global manufacturing strategies are: centralized manufacturing in a single country regionalized manufacturing in specific regions
served local manufacturing in each country market
served
Multidomestic marketing and manufacturing approach is most common among multinationals
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Coordination and Control
Coordination: the linking and integrating of participants and activities throughout the (global) supply chain into a unified system
Control: embraces systems such as organizational structure and performance measurement that are designed to help ensure that strategies are implemented, monitored, and revised, as appropriate
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Total Quality ManagementTQM is a process that stresses customer
satisfaction. Employee involvement, and continuous improvement of quality
Quality: conformance to specifications, value enhancement, fitness for use, after-sales support, and psychological impressions (image)
Six Sigma: an idea perfected by Japanese manufacturers who refuse to tolerate defects of any kind
Kaizen: the Japanese process of continuous improvement, which requires identifying problems and enlisting employees at all levels of the organization to help eliminate them
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The Global Component Network for Ford’s European Manufacturing of the Escort
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Global SourcingSourcing: the process of a firm having inputs
supplied to it from outside suppliers for the production process. Firms pursue global sourcing strategies in order to:
reduce costs improve quality increase exposure to worldwide technology improve delivery of supply gain access to materials that are only available
abroad establish a presence in a foreign market satisfy offset (countertrade) requirements react to competitors’ sourcing practices
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Global Sourcing and Production Strategy
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Inventory ManagementInventory management: the planning and control of
the levels, flows, and storage of inputs, unfinished, and finished goods
Just-in time manufacturing (JIT): a system that reduces inventory costs by having inputs delivered just as they are needed for the production process
Foreign trade zones (FTZs): government-designated areas in which goods can be stored, inspected, and/or manufactured without being subject to formal customs procedures until they actually enter a country