《國(guó)際管理-教程和案例》教學(xué) 中國(guó)人大出版社

Chapter1TheInternationalizationProcessKeyPointsRationaleProcessDimensionsCourseContentOverviewRationaleFirmsbecomeinternationalinscopeforavarietyofreasons:DesireforcontinuedgrowthUnsolicitedforeignordersDomesticmarketsaturation,PotentialtoexploitanewtechnologicaladvantageThedominantreason,however,relatestoperformanceProcessInternationalizationistheprocessbywhichFirmsincreasetheirawarenessoftheinfluenceofinternationalactivitiesontheirfutureEstablishandconducttransactionswithfirmsfromothercountries.Internationaltransactionscaninfluenceafirm’sfutureinbothdirectandindirectways.Businessdecisionsmadeinonecountry,regardingsuchthingsasforeigninvestmentsandpartnershiparrangements,canhavesignificantimpactonafirminadifferentcountry—andviceversa.Theimpactofsuchdecisionsmaynotbeimmediatelyanddirectlyevident.DevelopmentofanawarenessandappreciationfortheroleofforeigncompetitionbecomesintegralDimensionsofInternalizationInternationalizationhasbothinward-lookingandoutward-lookingdimensions.Theoutward-lookingperspectiveincorporatesanawarenessofthenatureofcompetitioninforeignmarketsIncludesthefollowingmodesofactivities:Exporting.Actingaslicensortoaforeigncompany.Establishingjointventuresoutsidethehomecountrywithforeigncompanies.Establishingoracquiringwhollyownedbusinessesoutsidethehomecountry.DimensionsofInternalization(cont.)Internationalizationaffectsfirmsinequallyimportantwaysfromaninwardperspective.Therelatedmodesofactivityinclude:Importing/sourcing.Actingaslicenseefromaforeigncompany.Establishingjointventures(JVs)insidethehomecountrywithforeigncompanies.Managingasthewhollyownedsubsidiaryofaforeignfirm.CourseContentOverviewTheGlobalBusinessEnvironmentTheWorldofInternationalTradeManagingExportOperationsGlobalSourcingStrategyLicensingTheDesignandManagementofInternationalJointVenturesInternationalStrategyFormulationCourseContentOverview(cont.)TheImpactofGlobalizationontheOrganizationofActivitiesTheEvolvingMultinationalTheGlobalManagerStrengtheningInternationalGovernmentRelationsGlobalLeadershipEthicalChallengesofInternationalManagementManagingtheNewGlobalWorkforceChapter2TheGlobalBusinessEnvironmentKeyPointsKeyVariablesPopulationEconomicDevelopmentTradeandNaturalResourcesForeignInvestmentMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigKeyVariablesPopulationEconomicDevelopmentIndicesGrossNationalIncome-GNIPurchasingPowerParity-PPPInternationalTradeandNaturalResourcesForeignInvestmentMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide2-2INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigPopulation6billionin2000–estimatedtogrowto8.5billionby2025Halfofworld’spopulationisinAsia-Pacificregion30%oftheworld’spopulationisundertheageof15ImplicationsexistforthetypesofproductsdemandedRural–urbandividesexistinpopulationdistributionwithinacountryMigrationtoothercountriescanhaveamajorimpactonoveralltradeandbalanceofpaymentsofacountryMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide2-3INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigEconomicDevelopmentThepositionoftheG7countriesisunderchallengeAsof2000,India,Mexico,RussiaandBrazilhaveeconomiesthatarelargerthanthatofCanadawhenmeasuredusingPPPGNIlevelsindicateincomelevelsPPPrestatesGNIforeachcountrywiththesamepricesforabasketofgoodsandservicesPPPaddressestheproblemofchangingexchangeratesMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide2-4INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigTradeandNaturalResourcesTrendsinthetradeofmanufacturedproductsVolumeoftradeinmanufacturedproductshasrisendramaticallyNumberofsourcecountrieshasrisenCompositionofthetradeofmanycountrieshaschanged-tradeinserviceshasincreasedasapercentageofinternationaltrade(eg.Tradeintourism)Therelativevalueofunprocessednaturalresourcesininternationaltradehasdeclined.Acombinationoftechnologytransferandrelativelylowlaborcostshasledtoincreaseinthenumberofcountriesexportingfreshandprocessedagriculturalandfisheryproducts.McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide2-5INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigForeignInvestmentForeigndirectinvestmenthasbecomeoneofthemajormeansbywhichcompaniesoperateinternationallyFDIishighlyconcentratedamongarelativelyfewcountries.Three-fourthsofFDIflowsareamongthehigh-incomecountriesinEurope,Japan,andNorthAmerica.OftheFDIflowstolower-incomecountries,abouttwo-thirdsisconcentratedamong10countriesHeightenedawarenessofinterconnectednessandenvironmentalissueshasraisedbothethicalandlegalproblemsforMNEsMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide2-6INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigChapter3TheWorldofInternationalTradeKeyPointsAFrameworkforTradeAnalysisAbsoluteandComparativeAdvantageNewTheoriesofInternationalTradeOtherFactorsaffectingInternationalTradeMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigAFrameworkofTradeAnalysisMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-2INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigTheSocial,Technological,EconomicandPolitical(STEP)system,anditseffectsoncomparativeandcompetitiveadvantageCountriesabroadasmarketsforexportsandsourcesofimports.Tradeandnontarriffbarrierstotradeandgovernmentincentivestopromotetrade.Linkingproducersandbuyersthroughtradeintermediaries.TheSTEPsystemMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-3INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigEachfirmoperateswithinthesocial,technological,economic,andpolitical(STEP)environmentofthecountryinwhichitproduces.TheSTEPenvironmenthasastronginfluenceonthefirm.STEPenvironmentinfluencesthecomparativeadvantageoftheproductsitproducesrelativetoproductsproducedbyotherfirmsabroad.Thefirm'sSTEPenvironmentmayalsoinfluenceitscompetitiveadvantageinthenationalmarketandabroad.TrendsinaSTEPenvironmentrelativetothetrendsintheSTEPenvironmentofothercountrieshaveastronginfluenceonafirm'sabilitytoenterortocontinueinternationaltradingoperations.MarketIdentificationMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-4INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigEntailsanalysisoftrendsindemandarisingfromchangesinpopulation,incomelevels,andconsumerpreferencesinpotentialexportmarkets.Ifthereisademandforthefirm'sproductsinamarket,thesupplycapabilitiesofdomesticfirmsandotherexportersworldwidetomeetthisdemandatlowerpricesorhigherqualitymustbeassessed.ImpedimentstoTradeMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-5INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigGovernmentpoliciestorestrictandtopromotetradecanhaveadecisiveinfluenceonTradeflowsThecompetitivepositionoffirmsinexportmarketsTheavailabilityandpriceofimportsTheabilityoffirmstocompetewithimports

Governmentscanalsofacilitateexportsdirectlybysuchmeasuresas:ConcessionalexportfinancingExportsubsidiesDifferentialtaxationofexportearningsFinancingforexportmarketdevelopmentTradeIntermediariesMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-6INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigAcompetitiveproductandareceptivemarketarenotenough;theproductmustbe:Transportedfromthefactorytothepointofshipment(portorairport)TransportedtoexportmarketBereceivedintheexportmarketClearcustomsMovethroughdistributionchannelstothepointofsaleSoldtothecustomerBeservicedaftersaleInternationalchannelsofdistributionareoftenlong,multilayered,complex,difficulttoanalyzeandunderstand,andexpensivetoaccessortodevelop.Channelcostsmayrepresentthreetimestheproductioncostofaproduct.AbsoluteAdvantageMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-7INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigOutputOutput/HourXYXYLabourHoursCountryA1642112CountryB44126TotalOutput(notrade)208TotalOutput(trade)2412ComparativeAdvantageMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-8INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigOutputOutput/HourXYXYLabourHoursPy/PxCountryA1244252CountryB7711141TotalOutput(notrade)1911TotalOutput(trade)2014AspectsofTheoriesofInternationalTradeMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-9INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigThetheoriesalsoshowthat:Tradeimprovestherelativewelfareofthefactorsofproductionthatareusedintensivelyintheexportedproduct.Iflaborandcapitalareimmobileamongsectors,thenthereturnstothefactorsofproduction(laborandcapital)intheexportingindustrywillimproverelativetothoseintheimportingsector.Thewelfareofconsumersoftheexportproductswilldeclinerelativetoconsumersofimportedproducts.Countrieswilltendtoexportproductsthatusetheirrelativelyinexpensiveandabundantfactorsofproductionintensively.Tradebringsaboutanequalizationofthereturnstofactorsofproduction;thatis,tradetendstoequalizecapitalcostsandwageratesamongcountriesovertime.NewTheoriesofInternationalTradeMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-10INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigIntraindustryTradeClustersofInterconnectedCompaniesExchangeofideasamongpersonnel.Buildingofsupportinfrastructure.BenefitsofTradeTradeflowsalsoinfluencedby:RealExchangeRates.Demandconditionsoverthebusinesscycle.RealExchangeRateMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide3-11INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigAnincreaseinacountry'srealexchangeratehasmanyofthesameeffectsasareductioninitstariffrate.Afallintherealexchangeratehastheoppositeeffect.Realexchangerateisimportanttolargeandsmallcountriesandforhigh-incomeanddevelopingcountriesalike.Realexchangesratesmaychangedueto:Agapbetweeninvestmentdemandanddomesticsavings.Short-termgovernmentmacroeconomicpolicy.Changeinacountry'stermsoftrade.Discoveryofvaluablenaturalresources.DemandDemandconditionsoverthebusinesscyclesinthedomesticmarketandinexportmarkets,andsourcecountriesforimportsinfluenceinternationaltrade.Ifthedomesticeconomyisexpandingrelativetotheeconomiesofothercountries,exporterswilltendtodivertproductiontothedomesticmarket.Ifthedomesticdemandisslack,producerswilltendtotrytopushexcessproductionontoexportmarkets.Chapter4ManagingExportOperationsKeyPointsStepstoManagingExportOperationsPricinginExportMarketsStagesofExportMarketInvolvementTradeIntermediariesVitalQuestionstobeaskedPresentdayexporttradeMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigStepstoManagingExportOperationsStep1-SegmentWorldmarketsProductQualityandProductfeaturesegmentationFactorsinfluencingsegmentationPurchasingpowerConsumertastesWeatherconditionsLevelanddispersionofwagesandtechnicalskillsImportantfactorsinanalysisEmergingdemandmetbyinnovationsinproducttechnologyinonecountrythataremirroredinothercountriesDeregulationandrestructuringofmarketsGovernmentpoliciesandprogramsMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-2INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigStepstoManagingExportOperations(contd..)Step2-SelectanEntryStrategytoPromoteSustainableCompetitiveAdvantageStandardizedproducttoallmarketsProduct-LifecyclestrategyLocalizedmarketstrategyAcombinationofstrategiescanalsobefollowedStep3-Takealong-runPerspectiveInitialcostsmustbeviewedasinvestmentsReturnsoninvestmentswillnotbeimmediateinexportmarketsMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-3INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigPricinginExportMarketsStrategy1-RequiringpricesinexportmarketsthatyieldhigherreturnsthanareavailableindomesticmarketsBasedonthebeliefthatexportoperationsaremoreriskyrelativetodomesticsales-canresultinuncompetitiveprices.Strategy2-PricingtoyieldsimilarreturnsindomesticandexportmarketsBasedontheviewpointthatexportmarketsdonotnecessarilydifferfromdomesticmarketsStrategy3-Pricingtoyieldlowerreturns,orevenlosses,inexportmarkets—atleastintheshortrunReflectsanapproachthatviewsexportmarketsasthepotentialgrowthmarketsofthefuture-firmvulnerabletoantidumpingactionStrategy4-PricingtosellproductioninexcessoftheneedsofthedomesticmarketsolongasthesesalesmakeacontributiontofixedoverheadandprofitViewofexportmarketsasadumpinggroundforproductionintimesofexcesscapacity-firmsveryvulnerabletoanti-dumpingactionsMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-4INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigStagesofExportMarketInvolvementStage1–UnplannedentryUnsolicitedorderfromabroad,overproduction,decliningdomesticsales,pressures,“followtheleader〞behavior,government-sponsoredtradefairs,andfundedexportmissionsStage2–SystematicevaluationoftheimpactofexportsStage3-Exportsbecomeamajorfactorinthefirm’sstrategyandoperations.McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-5INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigTradeIntermediariesImportTradersForeveryexport,thereisanimportPureimportersaremarketconnectors;theycreatevaluethroughlinkingproducersabroadtobuyersinthedomesticmarketPureimportersusuallyhaveanadvantagesuchasknowledgeofthedomesticmarketandpracticesExportTradersTheyarealsomarketconnectorsTheiradvantageslieinknowledgeofmarketsinparticularcountriesorinknowledgeofworldwidemarketsforparticularproducts.TradingHousesPureimportoperationsandpureexportoperationsarejoinedtogetherin

thetradinghousesMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-6INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigVitalQuestionstobeaskedDoesourproductandfirmhaveasustainablecompetitiveadvantageinexportmarketsand,ifso,why?Whataretheexportmarketsandthesegmentsofthosemarketsthatwillvalueourproductsufficiently(relativetoothercompetingproducts)tooffsetourcostsofproductionanddistribution?Shouldthefirmexportastandardproductwithastandardmarketingmixworldwideorshouldittailoritsproductsandmarketingmixtoindividualexportmarkets?Whatnaturalandgovernment-imposedtradebarriersimpedelinkingproductioninonecountrytopurchaseinanother,andwhatfactorsmightfacilitatethislinkage?Whatarethemostappropriatechannelsofdistributionforourproducttoachieveourgoalsinexportmarkets?McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-7INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigPresentdayexporttradeTariffandnontariffbarrierstotradehavefallengloballyandfreetradeareashavedeveloped.Firmsoftennowanalyzetradeopportunitiesonaregional,andsometimesevenbroaderbasisProductsareoftennotsentdirectlyfromonehomeproductionsitetoanexportmarketabroad.Inputsaresourcedinanumberofcountriesandassembledinothercountries,andthefinalproductissoldinyetothercountriesTradeintricatelylinkedwithforeigninvestment,jointventures,licensing,franchising,contractproduction,andcomponentsourcingMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-8INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigCountertradeAspecialformofexportingiscountertrade,thelinkedexchangeofgoodsforgoodsininternationaltradeCountertradecovers-Barter

,Counterpurchase,Compensationorbuyback,Productionsharing,Industrialoffsets,Switches,UnblockingfundsandDebtforequityswapsCanbecomplicatedandcostlytonegotiateandexecuteImportantcharacteristicsofcountertradecontractsneedtobeattendedtocarefullybyanexporterGenerallycountertradeisaninefficientformoftrade.ItcreatescostsandrisksforbothimportersandexportersMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-9INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigMajorProjectDevelopmentImportanceandinvestmentincreasedduringthe1990s–likelytocontinuetoincreaseinthefuture.Generallyforinfrastructuredevelopment-electricitygeneration,telecommunications,waterandsewagetreatmentfacilities,andevenroadsandports.TypesofMajorprojectsTurnkeyprojectsFirmundertakestoconstructamajorproject,thenturnsitovertoitsownerswhenitisinfulloperationBuild,operate,andtransferprojects(BOT)Firmsbidfortherighttoconstructtheproject,thewinningfirmalsooperatesthefacilityafteritiscompleted.Ownershipislimitedtoacertaintimeperiod,afterwhichtheprojectistransferredtoanotherorganizationBuild,operate,andownprojects(BOO)Firmsbidfortherighttoconstructtheproject.Thewinningfirmalsooperatesthefacilityafteritiscompleted..McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-10INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigExports,Imports,andInternationalFinanceImportantaspectsforexporters/importersEffectoftherealexchangerateoncompetitiveadvantage,EffectofvariationsinthenominalexchangerateonexportandimportprofitabilityPricingofthegoodsintheimporterscurrencyCounteredbysettingupcurrencyhedgeUseofforwardcontractsEffectoftradeonfinancingneedsandsourcesIrrevocableletterofcredit(LoC)usedtoovercomeuncertaintyMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide4-11INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigChapter5GlobalSourcingStrategyKeyPointsInternationalProductCycleTheoryTrendsinGlobalSourcingStrategyPotentialPitfallsinGlobalSourcingTheValueChainFunctionalInterfacesLogisticsofSourcingStrategyLong-termConsequencesMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigInternationalProductCycleTheoryGlobalcompetitionsuggestsadrasticallyshortenedlifecycleformostproducts,andnolongerpermitscompaniesapolycentric,country-by-countryapproachtointernationalbusiness.Afrequentlyusedframeworktodescribecross-nationalbusinesspracticesistheinternationalproductcycletheory.Accordingtothetheory,changesininputsandproductcharacteristicstowardstandardizationovertimedetermineanoptimalproductionlocationatanyparticularphaseoftheproduct’slifecycle.McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-2INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigInternationalProductCycleTheory(cont.)However,threemajorlimitationsoftheinternationalproductcycletheoryhavetobeborneinmind:1. Increasedpaceofnewproductintroductionandreductionininnovationalleadtime,whichdeprivecompaniesoftheage-oldpolycentricapproachtoglobalmarkets,2. Predictablesourcingdevelopmentduringtheproductcycle,whichpermitsashrewdcompanytooutmaneuvercompetition,and3. Moreactivemanagementoflocationalandcorporateresourcesonaglobalbasis,whichgivesacompanyapreemptivefirst-moveradvantageovercompetition.EmphasisonlogisticalmanagementoftheinterfacesofR&D,manufacturing,andmarketingactivitiesonaglobalbasis–globalsourcingstrategyMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-3INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigTrendsinGlobalSourcingStrategyTrend1:

TheDeclineoftheExchangeRateDeterminismofSourcingTrend2:

NewCompetitiveEnvironmentCausedbyExcessWorldwideCapacityTrend3:

InnovationsinandRestructuringofInternationalTradeInfrastructureTrend4:

EnhancedRoleofPurchasingManagersTrend5:

TrendtowardGlobalManufacturingMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-4INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigPotentialPitfallsinGlobalSourcingConflictbetweenunificationandfragmentation-aclose-knitoperationalstrategywithsimilarforeignunitsversusalooselyrelated,highlyvariegatedfamilyofactivities.Dilemmarevisitedinsuchtermsas:“standardizationversusadaptation〞(1960s)“globalizationversuslocalization〞(1970s)“globalintegrationversuslocalresponsiveness〞(1980s)“scaleversussensitivity〞(1990s)However,abilityandwillingnessofcompaniestointegratehavechangedduetocompetitiveurgency.McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-5INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigTheValueChainThecollectionofactivitiesthatareperformedbyacompanytodesign,manufacture,market,deliver,andsupportitsproductiscalledthevaluechain.Thevaluechaincanbedividedintotwomajoractivitiesperformedbyacompany:

(1)primaryactivitiesconsistingofinboundlogistics(procurementofrawmaterialsandcomponents),manufacturingoperations,outboundlogistics(distribution),sales,andafter-saleservice,and(2)supportactivitiesconsistingofhumanresourcemanagement,technologydevelopment,andotheractivitiesthathelppromoteprimaryactivities.McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-6INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigTheValueChain(cont.)McGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-7INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweig

Fivecontinuousandinteractivestepsareinvolvedindevelopingsuchaglobalsourcingstrategyalongthevaluechain.1. Identifytheseparablelinks(R&D,manufacturing,andmarketing)inthecompany’svaluechain2. Inthecontextofthoselinks,determinethelocationofthecompany’scompetitiveadvantages,consideringbotheconomiesofscaleandscope3. Ascertaintheleveloftransactioncostsbetweenlinksinthevaluechain,bothinternalandexternal,andselectingthelowestcostmode4. Determinethecomparativeadvantagesofcountries(includingthecompany’shomecountry)relativetoeachlinkinthevaluechainandtotherelevanttransactioncosts5. Developadequateflexibilityincorporatedecisionmakingandorganizationaldesignsoastopermitthecompanytorespondtochangesinbothitscompetitiveadvantagesandthecomparativeadvantagesofcountries.FunctionalInterfacesMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-8INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigManagementoftheinterfaces,orlinkages,amongthesevalue-addingactivitiesisacrucialdeterminantofacompany’scompetitiveadvantage.GlobalsourcingstrategyencompassesmanagementofTheinterfacesamongR&D,manufacturing,andmarketingonaglobalbasisandLogisticsidentifyingwhichproductionunitswillservewhichparticularmarketsandhowcomponentswillbesuppliedforproduction.R&D/ManufacturingInterfaceManufacturing/MarketingInterfaceMarketing/R&DInterfaceLogisticsofSourcingStrategyMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-9INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweig“Sourcing〞isusedtodescribethemanagementbymultinationalcompaniesoftheflowofcomponentsandfinishedproductsinservingforeignmarkets.IntrafirmSourcing.

Multinationalcompaniesprocuretheircomponentsin-housewithintheircorporatesystemaroundtheworld.Domesticin-housesourcing.Offshoresubsidiarysourcing.Outsourcing.

Componentprocurementfromoverseas(offshoresubsidiarysourcingandoffshoreoutsourcing)hasbeenaserioussocialandeconomicissueasitaffectsdomesticemploymentandeconomicstructure.Long-termConsequencesMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc.Allrightsreserved.Slide5-10INTERNATIONALMANAGEMENT5/eBeamish,Morrison,InkpenandRosenzweigTwoopposingviewsoftheconsequencesofoffshoreoutsourcing:StrategicAlliancesMaximizesspecializedcompetencesDependenceCreatesuncertainenvironmentforindependentsuppliers,increasingproductionandmaterialcosts.Chapter6LicensingKeyPointsWhatisLicensing?Whenisitemployed?LicensingrelatedissuesSomeLicensingAnnouncementsMcGraw-Hill?2003TheMcGraw-HillCompanies,Inc