In this chapter, the learning objectives are: Explain the promises and risks associated with exporting, identify the steps managers can take to improve their firm's export performance, identify information sources and government programs that exist to help exporters. | Global Business Today 6e by Charles . Hill McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Global Production, Outsourcing, and Logistics Introduction In today’s global economy, firms must decide where to locate productive activities what the long-term strategic role of foreign production sites should be whether to own foreign production activities or outsource those activities how to manage a globally dispersed supply chain and what the role of Internet-based information technology should be in the management of global logistics whether to manage global logistics or outsource Strategy, Production, and Logistics Question: How can production and logistics be conducted internationally to 1. lower the costs of value creation 2. add value by better serving customer needs? Production refers to activities involved in creating a product Logistics refers to the procurement and physical transmission of material through the supply chain, from suppliers to customers The Six Sigma system, a direct descendant of total quality management (TQM), aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company Where to Produce Question: Where should production activities be located? When deciding where to locate production facilities, firms must consider country factors technological factors product factors The Strategic Role of Foreign Factories Question: Does the rationale for establishing a foreign production facility change? The strategic role of foreign factories and the strategic advantage of a particular location can change over time A factory initially established to make a standard product to serve a local market, or to take advantage of low cost inputs, can evolve into a facility with advanced design capabilities As governmental regulations change and/or countries upgrade their factors of production the strategic advantage of a particular location can change Outsourcing Production: . | Global Business Today 6e by Charles . Hill McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Global Production, Outsourcing, and Logistics Introduction In today’s global economy, firms must decide where to locate productive activities what the long-term strategic role of foreign production sites should be whether to own foreign production activities or outsource those activities how to manage a globally dispersed supply chain and what the role of Internet-based information technology should be in the management of global logistics whether to manage global logistics or outsource Strategy, Production, and Logistics Question: How can production and logistics be conducted internationally to 1. lower the costs of value creation 2. add value by better serving customer needs? Production refers to activities involved in creating a product Logistics refers to the procurement and physical transmission of material through the supply chain, .
