Chapter 2 Flashcards
(56 cards)
What are the six reasons domestic business operations decide to change to some form of international operation:
- Improve supply chain
- Reduce costs (labor, taxes, tariffs)
- Improve Operations
- Understand Markets
- Improve products
- Attract and retain global talent
The supply chain can often be improved by:
locating facilities in countries where unique resources are available
Relocating to another country can reduce what types of costs?
Direct and indirect, along with tax liability and tariffs.
What are three advantages to shifting low-skilled jobs to other countries
- Reduce labor costs
- frees higer cost workers to do more expensive tasks
- money saved on wages can be reinvested
An international organization that promotes world trade by lowering barriers to the free flow of goods across borders
World Trade Organization
What are two ways operations can be improved by going overseas?
- Learn new and better ways of doing things
2. Be closer to customers for better service
Firms that go overseas inevitably learn what?
about new opportunities for products and services because of interactions wih new people
One reason firms go overseas is to ______ the product life-cycle
increase
Why can global firms recruit and retain good employees?
- They provide greater growth opportunities
2. They are more insulated from unemployment
successfully achieving a competitive advantage means maximizing
all the possible opportunities–tangible and intangible–that international operations can provide.
What two things must an effective operations management effort must have?
A mission and a strategy
What is a mission?
Purpose or rationale for an organization’s existence
what are the major disciplines required by the firm, such as accounting, marketing, and production?
Functional Areas
What must each functional area have?
supporting missions
What is a strategy?
How an organization expects to achieve its missions and goals
What must be taken into account while the firm is preparing its strategy?
(SWOT) Strength, Weaknesses, Opportunities, Threats
Firms achieve their missions in three conceptual ways:
- differentiation
2 cost leadership - Response
These three ways of following the conceptaul ways are:
- better or different
2 cheaper
3 more sponsive
what is competitive advantage?
The creation of a unique advantage over competitors
Differentiation is concerned with:
providing uniqueness
What is differentiation?
Distinguishing the offering of an organization in a way that the customer perceives as added value
What is experience differentiation
Engaging a customer with a product through imaginative use of the five senses, so the customer “experiences” teh product
What is low-cost leadership?
Achieving maximum value, as perceived by the customer.
What is on specific way companies can become low-cost leaders?
effective ulization of resources (ie high productivity/efficiency)
