Lecture 6 Gpn06
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1. Whirlpool operates a global production network, producing appliances like washers and microwaves in different countries based on factors like wages, transportation costs, and the location of parts suppliers. This allows the company to remain competitive while maintaining U.S. jobs and investing overseas profits domestically. 2. Economists study global value chains and how production is sliced up across countries. Industries are either producer-driven by large manufacturers or buyer-driven by retailers who outsource production globally. 3. As production has globalized, firms have reorganized by outsourcing stages of production, selling non-core assets, and emphasizing human capital over physical assets to retain talent.
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Economic globalization has led to increased unemployment as multinational corporations seek to reduce costs through international division of labor and moving factories to lower cost locations. While this allows corporations to maximize profits, it has adverse effects on low-skilled and manufacturing workers. Even high-tech and research jobs are outsourced as long as a place can offer higher cost effectiveness. Additionally, globalization increases the threat of unemployment across different job types. Economic interdependence has also grown as globalization supports continuous growth but makes economies more vulnerable to external factors, such as downturns negatively impacting trading partners like Southeast Asian countries experienced after the weak 2001-2002 American economy.
GU STIA305 06
The document provides an overview of technological innovation and change. It discusses models of technological change including technology push and market pull. It describes how innovations can take place in products or processes and outlines models like the classical product cycle theory. The document also discusses factors like competition, disruptive innovations, the rebirth of manufacturing, and how information technology has impacted services. Finally, it outlines perspectives on long-term technological waves and clusters.
Globalization in detail and international business
This document provides an overview of globalization, including its definition, types, benefits, challenges, causes, and effects. It discusses key concepts like the globalization of markets and production. Several global institutions that help manage and regulate global trade are mentioned, such as the WTO and IMF. Characteristics of global managers and stages of entering international markets are outlined. India's large skilled professional population abroad and natural resources are briefly noted.
Ficci tag 2014
This document summarizes a presentation on driving growth through innovation in the textile and garment manufacturing industry. The presentation discusses:
1. Innovation is essential for business success as companies that did not innovate have gone out of business. Asian countries like China and India emerged as major textile producers due to lower costs.
2. Western countries have shifted to focus on high-end, innovative products while Asia produces basic goods. Companies need a strategic shift from basic to innovative products for higher profits.
3. Ways to kickstart innovation include funding R&D, having a visionary organization, exploring new areas, and grooming innovators within the company. A four-pronged approach of funds
Unit ii
A brief discussion over the desirability of global integration in the perspective of developing nations
Global Value Chains and the Changing Geography of Development
Global Value Chains and the Changing Geography of DevelopmentDuke University Global Value Chains Center (GVCC)
This presentation from Gary Gereffi, Director of the Duke University Center on Globalization, Governance & Competitiveness, covers four main areas:
1. The New Global Economy
2. What is a Global Value Chain (GVC)?
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This IDC Spotlight paper emphasizes how continuous improvement methodologies, empowered by instrumentation, machine learning, and distributed intelligence, will help manufacturing companies become flexible, context-aware digital businesses.
Chapter 3 Micro Foundations of Firm’s Advantage – Dynamic Capabil.docx
Chapter 3: Micro Foundations of Firm’s Advantage – Dynamic Capabilities View
In a previous chapter, we learnt about resource-based view (RBV), knowledge-based view (KBV) and core competence view (CCV) hypotheses. A major limitation of these hypotheses is that they are not designed for the VUCA world – the world that is volatile, uncertain, complex and ambiguous. Therefore, they do not consider the entropy factors – the factors that act as disruptive forces in highly dynamic markets. In this chapter, we will examine three of the most important entry factors:
· mainstreaming of non-consumers, i.e. the rise of new groups of customers served using alternative sets of resources, knowledge and/or core competencies.
· political power play, i.e. the role of non-market – often government-supported - factors in enabling competing firms to develop alternative sets of resources, knowledge and/or core competencies.
· globalization games, i.e. the shifts in the advantages of different national markets, and as a consequence of the firms having investments in those markets.
Micro foundations of firm’s advantage refer to the structures, processes and behaviors that help firms navigate the VUCA world. Development of appropriate structures, processes and behaviors that are in tune with the VUCA world allows firms to be dynamic in their capability. Dynamic capability is the capability for recognizing and responding or adapting to significant market change. Dynamic capability view (DCV) hypothesis of strategic action is intended to help firms stay relevant and is of strategic advantage for larger corporates and their stakeholders.
In this chapter, we will also learn about different types of marketplaces, and how to classify these marketplaces using the niche density (number of firms in a marketplace) and carrying capacity (size of the market) approaches. It is important to recognize the link between the concept of dynamic capability and the type of marketplaces. By operating in different types of marketplaces across different business divisions or regional geographies, the firms may be able to gain experience and develop structures, processes, and behaviors to not only survive but also thrive in a VUCA world.
Exhibit 3.x illustrates the evolution of DCV, based on the refinements of RBV, KBV and CCV. KBV distinguishes capabilities (and knowledge-base of the capabilities) from resources. CCV distinguishes core competencies (creative integration and innovative combination of knowledge) from ordinary capabilities (articulation and replication of knowledge). DCV distinguishes transforming capabilities, from core competencies.
Exhibit 3.x: Refinements in RBV, KBV and CCV Bring DCV in Perspective
Entropy Mechanisms under Dynamic Environments
We need a significant revision in the original elitist assumptions of the RBV, KBV and CCV, to account for the success of firms in face of the environmental crisis and dynamism in the 21st century. R ...
Science
This document discusses the branding challenges faced by Asian manufacturing firms as they attempt to transition from contract manufacturers to brand owners. It outlines several market-level and firm-level challenges, including competing in a sophisticated global marketplace, higher customer expectations, an emphasis on manufacturing over R&D, a top-down management style, and less willingness to invest in market research and branding consulting. While many Asian firms see branding as a way to capture more value and break out of the commodity trap of manufacturing, very few have succeeded in creating truly global brands, with the notable exceptions being Japanese and Korean automotive and electronics brands. The document examines some potential avenues for Asian firms to transition to branding, but notes that success is not guaranteed and competitive
Growth Strategies: Growth Drivers - Innovation and Entrepreneurship
This is the 5th part of the undergraduate course in Growth Strategies: Growth Drivers - Innovation and Entrepreneurship. Read by Pavel Luksha
Hitting The Wall Nike And International Labor Practices
Nike adopted a strategy of outsourcing all manufacturing to low-cost countries to reduce costs. While this saved on wages, it led to issues with working conditions and ethics. Nike failed to properly manage its outsourcing relationships and communicate its values to contract manufacturers. When reports of unethical practices surfaced, the company was unprepared and its reputation suffered. Moving forward, Nike learned to be more transparent and conduct marketing audits to improve social responsibility and regain consumer trust.
global stategies
The document discusses strategies and organizational structures of multinational corporations operating across international markets. It covers topics such as the impact of internationalization on industry structure and competition, frameworks for analyzing competitive advantage in an international context, and how national influences can shape competitiveness. It also examines the evolution of multinational strategies from early decentralized structures to more centralized and integrated approaches.
Ch14
The document discusses strategies for multinational corporations operating internationally. It covers topics such as the international location of production, modes of foreign market entry, implications of internationalization on industry analysis, and developing competitive advantage within an international context. National influences on competitiveness are also examined.
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- 3. Whirlpool WHR (NYSE) Data as of 11-04-2005 03:20 PM CT 612,400 0.42 (-0.52%) $80.17 Volume Day Change Price
- 5. Whirlpool's global network Microwave ovens Refrigerators Washers Engineered- Sweden Made in China Designed (made) America (Tulsa, Okla) Stoves Assembled Brazil American consumers Front - loading Top - loading German- made Export: Mexico Made in Clyde, Ohio Export: Europe
- 13. Producer-driven commodity chains Host A MNE HQ Host B Host C Host D control technology capital expertise commodity flows between subsidiaries inputs from ‘host’ economy (Source: Henderson, 1998: 369) value Finland: Nokia Design in London Finish in China Parts in Taiwan Market /Distribute in US
- 15. Buyer-driven commodity chains Brazil US India China Malaysia Taiwan Nike Developing economy A Developing economy B Developing economy C Core economy/major markets raw materials manufacturer B (basic production) manufacturer C (organizes production, finishing etc.) buyer (marketing, brand name) value Flows of capital, expertise, designs, materials etc. where relevant (Source: Henderson, 1998: 370)