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40 Cards in this Set

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Define Production?

Define Logostics?
The activities involved in creating a product

The activity that controls the transmission of physical materials through the value chain. From obtaining to distribution (developing material)
What are the the strategic onjectives of of the production and logostics functions of a firm?
-lower costs (production location and supply chain mgmt)
-Increase quality (get rid of defects in supply chain)
-accommodate demands for local responsiveness
-respond quickly to customer demand
Three ways that increasing quality of goods can reduce costs
1. increase productivity because time is not wasted on defective products
2. Lower scrap costs
3. reduce warranty costs
What is total quality management?
What is Six Sigma?
ISO 9000?
TQM- largly adpoted theory to increase liability
SS- new version of TQM. aimed to reduce defects, boost productivity, eleminate waste, and cut costs
ISO- European Quality standard
What are three factors that can a firm contemplating international production must be considered
-Country factors
-Technological Factors
-Product Factors
What is the minimum effect scale?
The smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to supplies and costs
What is flexable manufacturing technology?
Range of manufacturing technologies that aim to reduce set-up costs, improve quality control, and increase machine utilization (wide variety of products at the cost of standardized products)
What is Mass customization?
A firms ability to utilize flexable manufacturing to customize products at a low cost.
Two product features that effect location decisions
Value-to-weight

if the product meets universal needs
Centralization of production is makes most sense when: (6)
1. differences in countries have impact on costs
2. trade barriers are low
3. exchange rates are stable
4. technology has high FC and high minimum efficient scale, or flexable manufacturing exists
5. value-to weight ratio is high
6. serves universal needs
Decentralization of products makes most sense when: (6)
1. differences in countries have no effect on costs
2. trade barriers are high
3. exchange rates vary
4. Technology have low FC, low minimum efficient scale, and flexable manufacturing doesnt exist
5. value-to weight is low
6. not serve universal needs
What are some hidden costs of basing production over seas
employee turnover
shoddy workmanship
poor product quality
define global learning
The idea that valuable information does not reside just in the firms domestic operations, but also in foregin subsaries
What are four main production issues for firms?
-production location
-logostics management
-supply chain managment
-to buy or own production functions
four technology factors that a firm must consider when choosing production location?
fixed costs
minimum efficient scale
flexable manufacturing
lean manufacturing
Improvement in a foreign facility comes from??
1. pressue to lower costs or respond to local markets
2. increase in availadibily of advance production factors
advantages of make
low costs, protect technology, accumulate dynamic capabilities, improve scheduling
Advantages of buy
strategic flexability, low costs, offsets
Four main attributes of the Marketing Mix
-pricing strategy
-Distribution Strategy
-communication strategy
-product attribute
What is Levitt's theory?
advances in technology is creating a global marketplace which demands standardized products and rids multinational companies
What is Market Segmentation? Ways consumers are segmented?
identifying groups of consumers whose purchasing behavior differs from others in important ways
-geographical
-demographical
-psychological
-sociocultural
Product attributes are determined by three main things
product and technical standards
economical development
cultural differences
Four main differences in distribution strategies
- channel length
-concentration (fragmented and concentrated)
-channel quality
-channel exclussiveness
Three variables that jeapordize the communication strategy
cultural barriers
source and country of origin effects
Noise
Push vs. Pull
3 things that effect which method is choosen
Push- personal selling with a lot of work force and money. Pull- mass media

Product type and consumer satisfaction
media available
channel length
Push should be used when?
-short channels
-complex products
-few electronic media available
Pull should be used when?
-long channels
-universal products
-electronic media available
What is pricing discrimination?
when consumers in one country pay a different amount in consumers in another
Three aspects of strategic pricing
- expereince curve pricing
-multipoint pricing
-predatory pricing
What is the ethnocentric staffing policy? Advantages and disadvantages?
key managements positions are held by home-nationals.
A- unified culture/ brings core competencies
D-resentment in host country
What is Polycentric staffing approach? advantages and disadvantages?
Host country nationals manage subsidiaries while home country nationals have key corporate jobs.
A-inexpensive, no mytopia
D-isolates headquarters, limist mobility
What is a geocentric approach to hiring? advantages and disadvantages?
Picks the best person for the job without considering nationality.
A-uses HR right/strong culture
D-expensive
Four things that create success in foreign postings
self-orientation
Others-orientation
Perceptual ability
Cultural toughness
Three ways employees get trained
Cultural, practical, and language
What are two things Human Resources does for an international business?
Reduces costs of value creation and decides when to use expatriate employees (employees from home countries who go over seas)
What is expatriate failure?
The premature return of expratriate managers back home
Why do expatriate managers fail?
1. spouse cant adapt
2. managers inability to adapt
3. Family-related reasons
4. personal maturity
5. Unability to handle large responsibilities
What is the fundamental attribute of a global manager?
A global mindset
How do most companies pay expatriates?
Balance sheet approach : they recieve the same standard of living no matter where they live
what are labor unions concerns when it comes to a global strategy?
-multinationals will use the threat of production location movement to decrease union effect
-multinationals will move low-paying jobs overseas
-multinationals will import contractual agreements from home country lessening union importance