International Business: by Charles W.L. Hill
International Business: by Charles W.L. Hill
International Business: by Charles W.L. Hill
Business 7e
12-3
Strategy And The Firm
12-4
Calculating Profitability and Profit
Growth
12-6
Value Creation
12-7
Value Creation
12-8
Value Creation
12-9
Strategic Positioning
Differentiation or
Low cost
and then configure internal operations to support the choice
12-10
Operations: The Firm As A Value Chain
A firm’s operations can be thought of a value chain
composed of a series of distinct value creation activities.
Production,
Sales & marketing
Materials management
R&D
Human resources
Information systems, and the firm infrastructure
Value creation activities can be categorized as primary
activities (R&D, production, marketing and sales, customer
service) and support activities (information systems,
logistics, human resources)
12-11
Operations of The Firm As A Value
Chain
Figure 12.4: The Value Chain
12-12
Global Expansion, Profitability,
And Profit Growth
International firms can:
12-13
Expanding The Market: Leveraging
Products And Competencies
12-14
Location Economies
12-15
Location Economies
12-16
Experience Effects
By moving down the experience curve, firms reduce the cost of
creating value
To get down the experience curve quickly, firms can use a single
plant to serve global markets
12-17
Summary
12-18
Cost Pressures And Pressures
For Local Responsiveness
12-19
Cost Pressures And Pressures
For Local Responsiveness
12-20
Pressures For Cost Reductions
12-21
Pressures For Local Responsiveness
12-22
Pressures For Local Responsiveness
12-23
Choosing A Strategy
12-24
Choosing A Strategy
12-25
Global Standardization Strategy
12-26
Localization Strategy
12-27
Transnational Strategy
12-29
The Evolution of Strategy
12-30
The Evolution of Strategy
12-31