Chapter 5 location - 2nd
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The document discusses locational break-even analysis, a method of cost-volume analysis used to determine the optimal location for an industrial facility. It involves three steps: 1) determining the fixed and variable costs for each potential location, 2) plotting the total cost curves for each location, and 3) selecting the location with the lowest total cost for the expected production volume. The document provides an example comparing three locations - Perlis, Pahang, and Perak - based on their fixed and variable costs. It determines that Perlis has the lowest total cost for volumes under 500 units, Pahang for volumes between 500-1,000 units, and Perak for volumes over 1,000 units.
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SM CH 1 STRATEGIC MANAGEMENT ESSENTIALS
The document discusses strategic management, outlining its key stages and terms. It describes the strategic management process as having three main stages: strategy formulation, implementation, and evaluation. Some key points covered include defining strategic management, discussing the need for strategic planning, explaining why some firms do not strategically plan, and comparing similarities between business and military strategy.
Why Should The Company Implement Green Business?
The document discusses why companies should implement green business practices. It outlines the concept and evolution of green business and its benefits, which include reducing costs, attracting eco-conscious customers, and improving public image. Examples are given of multinational corporations like Panasonic and IKEA that have achieved significant environmental and economic benefits by implementing green strategies such as using renewable energy and reducing waste. The document concludes that companies should establish green policies and monitor their impact to gain a competitive advantage through sustainable practices.
GBS CH 3 LEVERAGING RESOURCES AND CAPABILITIES
1. The document discusses leveraging resources and capabilities through understanding a company's value chain.
2. It defines the value chain as the set of linked activities a company performs to design, produce, market, distribute and support its products.
3. Primary activities in the value chain include product design, operations, marketing, logistics, and service, while support activities include procurement, human resources, technology, and general management.
4. Configuration and coordination are important for managing a value chain. Configuration refers to how activities are arranged, while coordination connects the activities and is influenced by factors like national culture, learning effects, and operational obstacles.
Notes GBS CH 1,2,3,4,5,6,7,9,8 and 10
The document discusses global strategy and international business. It defines global strategy as business strategies that serve consumers throughout the world by maximizing company performance across marketing, organization theory, business strategy, and international management. Effective global strategies consider differences between countries to gain competitive advantages from factors like labor costs, market sizes, and flexibility. They also manage risks and promote innovation and learning across international operations.
GBS CH 1 FOUNDATIONS OF GLOBAL STRATEGY
This document discusses global business strategy and international firms. It begins by outlining the learning objectives, which are to understand the needs of studying global business strategy, define global strategy, discuss issues in global strategy and the effects of globalization, discuss different types of global strategies, and discuss emerging types of global corporations. It then discusses the importance of global strategies for international firms and how strategies have evolved with the global marketplace. Different types of international strategies are also outlined, including their benefits and limitations. Key aspects of developing a global strategy like sources of competitive advantage, country comparative advantages, and the global business environment are also covered.
GBS CH 9 SMALL BUSINESS AND INTERNATIONAL ENTREPRENEURSHIP
This document provides an overview of small business and international entrepreneurship. It discusses key concepts like the definition of small businesses and SMEs in Malaysia according to factors like annual sales turnover and number of employees. It also describes characteristics of small businesses related to ownership, management, resources, organizational structure and flexibility. The document then covers topics like the internationalization process for small businesses according to stages from passive exporting to becoming a transnational company. It discusses reasons for entrepreneurship like pursuing growth, innovation and financing opportunities.
GBS CH 8 FDI RELATED ENTRY MODE STRATEGY
Foreign direct investment (FDI) can occur through mergers and acquisitions or various types of joint ventures and strategic alliances. When embarking on FDI, companies should analyze the level of competitiveness in the target market, conduct thorough market research, consider market expectations, and evaluate their own internal resources. Common forms of FDI include joint ventures, licensing agreements, cross-border mergers and acquisitions, and strategic partnerships.
GBS CH 7 ENTRY MODE STRATEGY
The document discusses different entry mode strategies for international market expansion. It focuses on trade-related strategies like exporting, subcontracting, and countertrade (barter, counterpurchase, offset, buyback). Exporting has benefits like lower risk but disadvantages like tariffs and transportation costs. Countertrade strategies allow trade without cash by exchanging goods or services. The document also briefly introduces transfer-related strategies like international franchising which involve transferring ownership or rights in exchange for royalty fees.
GBS CH 6 COUNTRY EVALUATION AND SELECTION
This document discusses factors to consider when evaluating and selecting countries for international business operations. It covers the importance of location, scanning countries to identify opportunities and risks, and variables to assess like sales expansion, resource acquisition, and political risk. The key steps are scanning countries broadly first before narrowing down options for more detailed analysis considering objectives, strategies, environmental factors, and flexibility as conditions can change. Opportunity variables include sales potential and accessing resources, while risk variables include political, economic, natural disaster, and competitive risks. Companies must prioritize and weigh these factors to decide where and how much to invest abroad.
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- 1. 8 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall Locational Break-Even Analysis Method of cost-volume analysis used for industrial locations Three steps in the method 1. Determine fixed and variable costs for each location 2. Plot the cost for each location 3. Select location with lowest total cost for expected production volume
- 2. 8 - 2© 2011 Pearson Education, Inc. publishing as Prentice Hall Locational Break-Even Analysis Example Three locations: Perlis 30,000 75 180,000 Pahang 60,000 45 150,000 Perak 110,000 25 160,000 Fixed Variable Total City Cost (RM)Cost (RM) Cost (RM) Total Cost = Fixed Cost + (Variable Cost x Volume) Selling price = RM120 Expected volume = 2,000 units
- 3. 8 - 3 Locational Break-Even Analysis Example – 180,000 – – 160,000 – 150,000 – – 130,000 – – 110,000 – – – 80,000 – – 60,000 – – – 30,000 – – 10,000 – – Annualcost(RM) | | | | | | | 0 500 1,000 1,500 2,000 2,500 3,000 Volume Perlis lowest cost Pahang lowest cost Perak lowest cost
- 4. 8 - 4 APRIL 2003 (1a) TCP = RM150,000 + RM60 (40,000 units) = RM255,0000 TCJ = RM300,000 + RM40 (40,000 units) = RM190,0000 TCT = RM500,000 + RM20 (40,000 units) = RM130,000 © 2011 Pearson Education, Inc. publishing as Prentice Hall
- 5. 8 - 5 APRIL 2003 (1b) TCPerlis =TCJohor RM150,000 + RM60x = RM300,000 + RM40x RM60x – RM40x = RM300,000 – RM150,000 RM20x = RM150,000 X = 7500 units © 2011 Pearson Education, Inc. publishing as Prentice Hall
- 6. 8 - 6© 2011 Pearson Education, Inc. publishing as Prentice Hall TCPerlis =TCTerengganu RM150,000 + RM60x = RM500,000 + RM20x RM60x – RM20x = RM500,000 – RM150,000 RM40x = RM350,000 X = 8,750 units
- 7. 8 - 7 TCJohor =TCTerengganu RM300,000 + RM40x = RM500,000 + RM20x RM40x – RM20x = RM500,000 – RM300,000 RM20x = RM200,000 X = 10,000 units © 2011 Pearson Education, Inc. publishing as Prentice Hall
- 8. 8 - 8© 2011 Pearson Education, Inc. publishing as Prentice Hall – – – – 500000 – – – 400000 – – – 300000 – – – 200,000 – – 100000 – – – Annual cost (RM) | | | | | | | 0 5000 10000 Volume Perlis lowest cost Johor lowest cost Terengganu lowest cost TCp = 150000 + 60x TCT = 500000 + 20x TCJ = 300000 + 40x
- 9. 8 - 9 APRIL 2003 (1c) Range Location 0 – 7500 unit Perlis 7500 – 10,000 units Johor More than 10000 units Terengganu
- 10. 8 - 10 October 2009 May 2012