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COMPETING IN A GLOBAL CONTEXT earthspace-85757273 (Marketing digital…
COMPETING IN A GLOBAL CONTEXT
Operations
Supply Chains
Internationalisation
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Advantages :check:
Reduced Costs
Increases flexibility from suppliers
Lower labour costs
Disadvantages :red_cross:
Longer supply chain
Loss of control
Time delay
Sustainability issues
Supply Chain Management
Optimise whole supply chain
Throughput efficiency
Bullwhip effect
Vertically integrated supply chains
Direction of any further intended integration
Extent of integration
Balance of integration
Manufacturing network development
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Domestic sourcing
Reactive international sourcing
Proactive international sourcing
Global sourcing networks
Operation Network Patterns
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Home country operations with exports
Multi-domestic operations
Regional operations
Global coordinated operations
Outsourcing
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External suppliers
The Barnes Outsourcing Matrix
Novelty
Utility
Commodity
Proprietary
Finance
Balance of payments
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The current account
The capital account
The financial account
Tax and exchange rates
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Tax
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Tax avoidance
Lower tax rate countries
More profit
Transfer pricing
Arms-length principle
Ensures prices are recorded
Stops companies distorting price of trade
Unitary taxation obstacles
Path dependency
Vested interests
Technical issues
Exchange rates
Supply and demand
Reason for increase in currency demand
Increase in income overseas
Increase in interest rates relative to returns available elsewhere
Financial reporting
IFRS
Sets standards and regulations
Marketing
Macro environment
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STEEPLE
Trading systems
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Micro environment
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Market attractiveness
Organisation capabilities
Three main marketing segments
Premium segment
Middle-market segment
Low-end segment
Branding
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Naming
Equity
Identity
Reputation
Ethical issues
Differing standards of consumer protection
Increase in cultural homogenisation
Targeting of lower-income consumers in developing countries
Corporate social responsibility
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Taking responsibility
Minimise negative impact of business activities
Global
Context
Organisational
Significant implications for
Innovation
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Internal context
Governance structures
Prevailing Culture
Internal stakeholders
External context
Outside Influences
Political regulations
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Physical resources
Cultural norms
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Operating environment
Factors :
Cultural
Political
Economic
Geographic
Globalisation
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Creates opportunties
Creates challenges
Driven by technology advancement
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Transportation development
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Changes in trade
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World shrinking
Transforming employee relations
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International focus
HRM needed to navigate
Work/life balance improvement
Glocalisation
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Integration of local and global forces
Trade Environment
The theory of comparative advantage
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Absolute comparative advantage
Developed by Adam Smith (1776)
Better to import goods if it is cheaper than making it ourselves
Relative comparative advantage
Countries specialise in production of goods
Specialise in goods of relative comparative advantage
Price difference main factor
The diamond model
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Structure of firms and rivalry
Demand conditions
Factor conditions
Related and supporting industries
The five forces of competition
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Direct industry competitors
Suppliers
Buyers
Potential entrants
Substitute goods and services
Challenges
Political Instability
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Adapting to changes
Cultural differences
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City Leadership
Activate
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Mobilise
Social processes
Lead
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Types
Managerial
Political
Civic
Business
Main elements
Actors
Structures
Processes
Followership
Convergence
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Adopt global values and processes
Divergence
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Encourages innovation
Considers local culture and context
Crossvergence
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Considers both local and global contexts
