IB 3101- Midterm Exam Guide - Comprehensive Notes for the exam ( 25 pages long!)
13 Oct 2017
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Week 9 chapter 12 strategy of international business. Strategy: actions that managers take to attain the goals of the firm, profitability. Is the rate of return the firm makes on its invested capital: reduce costs, add value and raise prices, profit growth. Is the percentage increase in net profits over time: sell more in existing markets, enter new markets. Value created = price consumer is willing to pay (value to consumer) cost of production. Micron: competitive advantage by having unique features. Involves creating the product, marketing and delivering the product to buyers, and providing support and after-sale service to the buyers of the product: r&d, production, marketing, sales, customer service, design. Support activities: provides the inputs that allow the primary activities of production and marketing to occur, information systems, logistics, hr. Organization architecture: the totality of a firm"s organization - formal organizational structure, control systems and incentives, organizational culture, processes, and people.
