Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

International Management > International Division of Value Creation > Flashcards

International Division of Value Creation Flashcards

1
Q

What are a company’s main strategic goals of internationalisation?

A
  1. ) Increase of cash flows

2. ) Reduction of risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Wha are potential sources of value increase from internationalisation for a company and how can they contribute to the realisation of the main strategic goals?

A

Increase of Cash Flow

  1. ) Economies of scale
    - -> learning curve effects
    - -> common use of resources
    - -> increased return to scale
  2. ) Arbitrage
    - -> differences in factor prices
    - -> differences in institutional conditions

Risk Reduction

  1. ) Economies of scale
    - -> capacity utilisation
  2. ) Arbitrage
    - -> access to resources
    - -> hedging
    - -> corporate foresight
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are potential barriers of value increase from internationalisation for a company and how can these barriers affect the main strategic goals?

A

Incease of Cash Flow

  1. ) Transaction costs
    - -> costs for flow of capital, goods or information
  2. ) Differentiation costs
    - -> heterogeneity of consumer and retail requirements

Risk Reduction

  1. ) Transaction costs
    - -> capital flow restrictions
    - -> currency exchange rates

2.) Differentiation costs
–> increased complexity of business strategy and internal
business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Explain the components of a firm’s value chain according to porter

A

Primary activities

  1. inbound logistics
  2. production
  3. outbound logistics
  4. marketing & sales
  5. customer service

Secondary activities

  • firm infrastructure
  • human resource management
  • technology development
  • procurement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the different strategic option of designing value creation proccesses within a value chain? (give company examples and explain briefly)

A
  1. ) Locally centralised value chains (ex. Augusutiner)
    • -> complete value chain only in one country

2.) Autarkic (independent) value chain (ex. McDonald’s)
–> value chain is executed in multiple countries
independently

3.) Value network (ex. VW)
–> different parts of the value chain are executed in
different countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What 4 different types of sourcing are there? (briefly characterise them)

A
  1. ) Traditional purchasing
    - -> operative national sourcing
  2. ) Strategically oriented sourcing
    - -> strategic national sourcing
  3. ) International purchasing
    - -> operative international sourcing
  4. ) Global strategic sourcing
    - -> strategic international sourcing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the the terms for sourcing from one, two or multiple suppliers?

A

1 supplier –> single sourcing /solo sourcing

2 suppliers –> second sourcing

2 or more suppliers –> multiple sourcing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the levels of sourcing decisions within global sourcing?

A

Strategic decisions

AND

Operative decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What do strategic decions entail?

A

include making decisions on:

  • success factors
  • demand & sourcing needs
  • market selection
  • product and supplier selection
  • purchasing policies / terms and conditions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What do operative decisions entail?

A

include decisions on:
- choice of criteria for performance measurement (ex.
Quality assurance)
- purchase controlling (calculation/budgeting)
- order policy & planning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are critical success factors of global sourcing ?

In which to categories can these success factors be classified?

A

Strategic success factors

  • Purchasing power & partnerships
  • Economies of scale
  • Supplier & product risk

Operative success factors

  • Delivery time
  • Reliability
  • Performance control
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the difference between the strategic and operative responsibilities in global sourcing?

A

Strategic Responsibilities –> CENTRALISED task ownership,

Operative Responsibilities –> DECENTRALISED task ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the advantages of producing abroad?

A

Cost Oriented
- reduction of logistics & labour costs

Market Oriented

  • access to new customers
  • keep up with competition
  • increase of reputation

Governmental
- local content

Risk/Flexibility

  • arbitrage/leverage
  • risk reduction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the disadvantages of producing abroad?

A

Cost Oriented
- possible loss of economies of scale (decentralised
production)
- increase in logistics costs

Market Oriented

  • negative firm image (exporting of jobs abroad)
  • negavite country of origin effect

Governmental
- import duties

Risk/Flexibility

  • reduced quality
  • increased uncertainty
  • less flexibility
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the different strategies for international production (characterise them briefly)

A
  1. ) National network production
    - production in one country
    - splitting of production stages
  2. ) International network production
    - production in multiple countries
    - splitting of production stages
  3. ) National parallel production
    - production in one country
    - splitting of production sites
  4. ) International parallel production
    - production in multiple countries
    - splitting of production sites
  5. ) Global market production
    - production in one country
    - regionally concentrated production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the biggest difference between Global Market Production and International Parallel Production?

A

Global Market Production
- follows Locally Centralised Value Chain
–> meaning product manufactured in one country and
shipped all around the world

International Parallel Production
- follows Autarkic Value Chains
–> meaning same product is manufactured according to
same value chain in every country

17
Q

What are 4 different forms of how international network production can look like?

A

Type 1 –> Value network (each step of value chain
manufactured in different location)

Type 2 –> Only first production stage in every country, all
other stages same country (same product)

Type 3 –> First and second production stage is the same for
every product and is executed in one country.
Thereafter different products are produced in
different countries

Type 4 –> Second stage of production is the same for every
product and is conducted in the same country

18
Q

Name the advantages of contract manufacturing?

A
  • focus on core competencies
  • cost reduction
  • production time reduction/productivity increase
  • shared risk
  • chance to overcome trade barriers
19
Q

What are some disadvantages of contract manufacturing?

A
  • dependence on partners
  • quality concerns
  • increase in logistics costs
  • possible unused capacity at own site
20
Q

What is the significance of logistics as a core process?

A

logistics costs are relatively low when compared to total costs

in retail –> 15,9% of all costs
in industry –> 7% of all costs

21
Q

What are the Logistics Sub-systems and what do they entail?

A
  1. ) Sourcing logistics (receipt of goods/commissioning/storing)
  2. ) Production logistics (Interim storage/material handling)
  3. ) Distribution logistics (shipping/commissioning)
22
Q

What are possible structures of the basic logistics systems?

A

1.) One step system (direct stream of goods from sender to
receiver)

  1. ) Combined system (direct & indirect stream of goods)
    • -> some goods follow one step system
    • -> some are bulked at one point and then sent to receiver

3.) More step system (indirect stream of goods)
–> goods sent via break-bulk point or consolidation point to
receiver

23
Q

What are some challenges of international logistics?

A
  • infrastructure
  • limitations to free transport
  • political/ legal influences
  • cross-national interdependencies
  • geographic distance and climate conditions
24
Q

What are different logistics service providers (ordered from operative to strategic/regional to worlwide focus)?

A
  1. ) Carrier
  2. ) Haulage (transport) contractor
  3. ) System Service provider
  4. ) System integrators
  5. ) Providers of logistics software
  6. ) Logistics and strategic consultants
25
Q

What are the components of the Pipeline Map for the textile industry and what do they represent?

A

Pipeline length –> sum of horizontal lines (minimum time a
product needs)

Storing time –> sum of vertical lines

Pipeline volume –> time from start to end user (sum of
horizonal and vertical lines)

26
Q

What are the components of the Speculation & Postponement Strategy (Lampel & Mintzberg) and how can they be characterised?

A

Speculation (in prodcution process)

- economies of scale
- generalisation/standardisation of goods
- low cost of marginal production

Postponement (in production process)

- minimalisation of risks due to delaying of investments
- customisation of goods
- high cost of marginal production
27
Q

How can the Speculation & Postponement Strategy be characterised?

A

–> moving from speculation to postponement by switching
from standardisation to customisation and therewith
reducing risk within supply chains

28
Q

What are the different categories of reasons for going international?

A
  • input oriented
  • output oriented
  • political/cultural
  • efficiency
  • external
29
Q

What are some input oriented reasons for going international?

A
  • qualified employees
  • IT-networks
  • R&D infrastructure
  • local scientific community
30
Q

What are some output oriented reasons for going international?

A
  • national legal environments
  • proximity to different markets
  • cost & performance advantages
  • lead users and customisation
31
Q

What are some political/cultural reasons for going international?

A
  • International patents
  • subsidies
  • lack of demand/acceptance in domestic market
  • possible legal limitations in home country
32
Q

What are some efficiency reasons for going international?

A
  • logistics
  • labour costs
  • shorter R&D-cycles
  • lesser risk of misdevelopment
  • flexibility
33
Q

What are some external reasons for going international?

A
  • Mergers and Acquisitions
  • Tax reasons
  • Pressure by competition
34
Q

Name some possible reasons for international cooperation?

A
  • ability to react to demand volatility
  • shortening R&D-cycles/expanding R&D know-how
  • diversifying risks
  • realisation of projects that not feasible otherwise

International Management (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions