Textbook Notes (368,164)
Canada (161,688)
Management (848)
MGM102H5 (200)
Chapter

Our Changing World - MGM .docx

5 Pages
64 Views
Unlock Document

Department
Management
Course
MGM102H5
Professor
Dave Swanston
Semester
Winter

Description
Our Changing World Although today’s growth continues to rely on significant U.S. economic capacity, the  next few decades will see a significant shift in this regard as China, India, Brazil, and  other economies mature and benefit from the significant foreign direct investment (FDI)  currently underway within these countries, and from the overall development of their  monetary banking systems, intermodal transportation facilities, and competitive business  models and operating platforms. The Global Market Place  Whether it is through operational growth, strategic alliances, formal partnerships,  mergers, or acquisitions, the global marketplace is becoming home to an increasing  number of businesses seeking to operate via an international­based business model. Why Go Global?  New Market Opportunities   Able to take your company to a new country/city > therefore you are potentially  able to expand  Cost Reduction Opportunity   Organizations will buy resources where it is relatively cheap > Enables  organization to have lower overall costs (manufacturing companies are attracted  to china because of cheap labor)   Offshoring: Transferring a component of a firm’s business system to another  country for the purpose of reducing costs, improving efficiency or effectiveness,  or developing a competitive advantage   Outsourcing: Contracting out a portion of, or a component of a firm’s business  system for the purpose of reducing costs, improving efficiency or effectiveness, or  developing a competitive advantage  Resource Base Control   The key fundamental in resource base acquisition strategies lies in seeking to  control supply sources or influence the use of such sources, as well as being able  to generate lower costs or better value by having more control over resource­ based factors of production. Closeness to Markets   Establishing facilities within developing economic regions enables companies to  operate closer to these emerging markets and to react more quickly to market  opportunities and trends Economies of Scale   Def’n: are reductions in the cost base of an organization as a result of greater size,  process standardization, or enhanced operational efficiencies The Role of Government: Global Market Instability   Government may have to in
More Less

Related notes for MGM102H5

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit