MANGT 421 Lecture 2: Chapter 2 Review

• School: Kansas State University
• Department: Management
• Course: MANGT 421
• Professor: Tom Hollinberger

Document Summary

Reasons to globalize: improves the supply chain, reduces costs, improves operations, understand markets, improve products, attract and retain global talent. How to improve the supply chain: locate facilities closer to unique resources. How to reduce costs: foreign locations have lower wage rates and can lower direct and indirect costs, trade agreements can lower tariffs. International operations can improve response time and customer service. Cultural and ethical issues: cultures and attitudes can vary depending on what country you"re in. Mission statement tells where an organization is going: the organizations purpose for being, provides boundaries and focus. Strategy tells how the organization is going to get there: action plan to achieve the mission, strategies exploit opportunities and strengths, neutralize threats, and avoid weaknesses. Strategies for competitive advantage: differentiation better, different, etc, cost leadership cheaper, response more responsive. Competing on cost: providing the maximum value as perceived by the customer.