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Competing in global context (Finance (balance of payments (current account…
Competing in global context
Environment
Local
Global
glocalisation
Trade
Politics
instabilities
Comparative advantage
absolute
cheaper price to another
relative
specialised in product
Competitive advantage
Differences in countries = competitive edge
International Operations pros
sourcing
closer to customer
supply networks
exposure (international competition)
innovation
Off-shoring + Re-shoring
Domestic Sourcing
Local
Reactive international Sourcing
Forced international sourcing
Proactive international sourcing
Wider supply chain sourcing quality and price
Global Sourcing networks
collaborative supply networks
Marketing
Macro- environment
micro - environment
Finance
balance of payments
current account
money in/out for goods/services
capital account
capital too/from abroad
financial account
financial inflows, assets, investments etc
''Paying taxes''
Small + medium sized companies must contribute (assets, capital etc)
Trading
arms length trading
between unrelated companies
transfer mispricing
Exchange rates
Volatile = effect value of assets/liabilities in foreign currency
Reporting
Stewardship
entrusting other people - reports at a later date
balance sheets
capital market function
professional manager - manage/ regulate owner manager
Context
Circumstances = Setting of event, statement or idea
Organisational context
Internal
Internal environment to help achieve goals
internal stakeholders
prevailing cultures
existing relationships
External
Outside Influences to help achieve goals
Stakeholders
Political regulations
cultural norms
Global Context
Convergence
adapting local places to meet global needs
Local Context
Divergence
coming away from parent culture and changing to meet local expectations
Cross- vergence
Staying with parent culture, adapting to local needs
Management
Supply Chain
Throughout efficiancy
Total value adding time/ total throughput time x100%
all activities add value, no waste
Bullwhip effect
magnified demand fluctuations
vertically integrated
controls most/all of supply chain
direction of further intended
extent of integration
balance of the integration
outsourcing
external companies to supply, deliver, manufacture etc.
Employee relations
employing international talent
international labour and product markets
HRM
Manage cultural differences
maximising opportunities globally
outsourcing
create fair working and wages
employee wellbeing interests