The Global Environment and Operations Strategy Flashcards
Learn vocabulary for Chapter 2
Maquiladoras
Mexican factories located along the U.S – Mexico border that receive preferential tariff treatment
World Trade Organization (WTO)
An international organization that promotes world trade by lowering barriers to the free flow of goods across borders
NAFTA
A free trade agreement between Canada, Mexico, and the United States
European Union (EU)
A European trade group that has 27 member states
Mission
The purpose or rationale for an organization’s existence
Strategy
How an organization expects to achieve its missions and goals
Competitive advantage
The creation of a unique advantage over competitors
Differentiation
Distinguishing the offerings of an organization in a way that the customer perceives as adding value
Experience differentiation
Engaging a customer with a product through imaginative use of the five senses, so the customer “experience” the product
Low-cost leadership
Achieving maximum value as perceived by the customer
Response
A set of values related to rapid flexible, and reliable performance
Operations decisions
The strategic decisions of OM are: goods and service design, quality, process design, location selection, layout design, human resources and job design, supply-chain management, inventory, scheduling, and maintenance
Resources view
A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage
Value-chain analysis
A way to identify those elements in the product/service chain that uniquely add value
Five forces analysis
A method of analyzing the five forces in the competitive environment
