Unit 2 - Operations Strategy in a Global Environment Flashcards
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.
North American Free Trade Agreement (NAFTA)
A free trade agreement between Canada, Mexico, and the United States.
European Union (EU)
A European trade group that had 28 member states in 2015. Britain is leaving in 2018.
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 “experiences” 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.
Key Success Factors (KSFs)
Activities or factors that are key to achieving competitive advantage.
Core Competencies
A set of skills, talents, and activities in which a firm is particularly strong.
International Corporation
A firm that engages in cross-border transactions.
Multinational Corporation
A firm that has extensive involvement in international business, owning or controlling facilities in more than one country.
International Strategy
A strategy in which global markets are penetrated using exports and licences.
Multidomestic Strategy
A strategy in which operating decisions are decentralized to each country to enhance local responsiveness.
Global Strategy
A strategy in which operating decisions are centralized and headquarters coordinates the standardization and learning between facilities.
Transnational Strategy
A strategy that combines the benefits of global-scale efficiencies with the benefits of local responsiveness.
