Module 2 Flashcards
six reasons domestic business operations decide to change to some form of international operation
Improve the supply chain.
Reduce costs and exchange rate risk.
Improve operations.
Understand markets.
Improve products.
Attract and retain global talent.
What is an maquiladoras
Mexican factories along the border and receive preferential tarrif treatment
What is a strategy?
organization’s action plan to achieve the mission.
Firms achieve missions in three conceptual ways
(1) differentiation, (2) cost leadership, and (3) response
Competitive advantage
a unique advantage over competiton
Experience Differentiation
engaging the customer with a product through the use of the 5 senses
What is Low Cost Leadership?
achieving maximum value as perceived by the customer
Response
a set of values related to the rapid, flexible, and reliable performance
What is a resources view?
a method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage
What is value chain analysis?
a way to identify elements in the product/service chain that add value
Porters Five Forces
immediate rivals, potential entrants, customers, suppliers, and substitute products.
Key Success Factors
activities that are necessary for a firm to achieve its goals.
Outsourcing expansion reasons
(1) increased technological expertise, (2) more reliable and cheaper transportation, and (3) the rapid development and deployment of advancements in telecommunications and computers
Seven Categories of advantage in global supply chain
1) Improving the SC
2) Reducing costs
3) Avoiding currency exchange risks
4) Improving the quality of operations
5) Improving products
6) Attracting global talent
7) Understanding the consumer markets in foreign countries
