Please enable JavaScript.
Coggle requires JavaScript to display documents.
Competing in Global Environment (Operational Strategy (Advantages (New…
Competing in Global Environment
Analysis of foreign market
The Diamond Mode
Demand conditions within the country and industry
Strategy of existing firms
Quality of infrastructure
Political legislation
Political stability
The five force competition
Direct competitors
Suppliers
Buyers
Potential entrants
Substitute Goods and Services
Operational Strategy
Identify
Which Country to manufacture the goods in?
Which country to sell the goods in?
Low cost supply chain
How much of the supply chain business wants to own?
Vertically integrated supply chain
Upwards integrated supply chain
Security of Supply
Reliability of Supply
control of raw material costs
Downwards integrated supply chain
Control of customers
Guarantee of business
Access to Market data
Customer knowledge
How to minimize bullwhip effect?
Reduce the number of stages within supply chain
Sharing demand information through the supply chain
Smaller more frequent stock replenishment
Reducing lead times
Limiting activities to reduce surges in demand
Disadvantages
Increased complexity
Different legislation within the country
Potential lack of skilled workforce
Loss of control if subcontractors are used
Advantages
New suppliers
Identify countries that offer cheaper materials
Cheaper labor
Outsourcing business processes/functions to reduce the cost
Outsource business functions to reduce the cost
Converge, diverge or crossvergance ?
Finances
Taxes
Explore countries legislation on reporting and paying taxes
Tax avoidance by transfer pricing
Inflation
Tax on imports and exports
Consider international tax system
Exchange rates of currency
Exchange rates speculates
Government policies that might influence exchange rates artificially
Marketing Approach
Decision where to globalize and where too localize
Gain local knowledge on social and cultural trends
Penetrate local segment
Ethical marketing approach
Maintaining brand reputation
HRM Function
Establish global recruitment
Manage relationships within organisation
Be the voice between employer and employee