Global Business Strategies Quiz

Study Notes

Define mission and strategy to articulate organizational direction.
Identify and explain three strategic approaches to gain competitive advantage.
Understand key success factors and core competencies vital for business growth.
Utilize factor rating methods to evaluate outsourcing options for countries and providers.
Identify and explain four global operations strategy options.

Boeing operates on a worldwide sales and supply chain model.
Benetton excels in rapid inventory movement worldwide through flexible design and distribution.
Sony sources components globally, notably from Thailand and Malaysia.
Volvo, notably Swedish, is owned by Chinese company Geely, assembles models across continents, sharing platforms with Mazda and Ford.
Haier, a Chinese appliance manufacturer, dominates the U.S. market for compact refrigerators and wine cabinets.

Strategic facility placement close to valuable resources facilitates production efficiency.
For example, perfumes are manufactured in France, and auto designs originate in California.

Trade agreements such as NAFTA and the EU can lower tariffs and improve profit margins.
Utilizing maquiladoras, the World Trade Organization, and regional pacts streamlines operations.

Exposure to diverse business practices enhances response times and service.
Notable practices include Japanese inventory management, German robotics innovation, and Scandinavian ergonomics.

Engaging with diverse markets exposes firms to new opportunities and extends product life cycles.
Cell phone design, shifting from Europe to Japan and India, exemplifies this globalization trend.

Collaborating on R&D, as seen with Toyota and BMW, fosters innovation.
Joint production efforts, like those between Samsung and Bosch, minimize risk and cut costs.

Global operations must navigate varying social and cultural norms, alongside international ethical guidelines.
Despite challenges, there is significant movement of capital, information, and goods worldwide.

Organizations assess factors such as national literacy, work ethic, innovation rates, and political stability when entering markets.
Economic indicators such as inflation, tax rates, and skilled workforce availability are critical for operations.

Various brands align with parent companies, like Braun with Volkswagen and Godiva with Campbell Soup.
Understanding such relationships aids in leveraging brand strengths and market positioning.

A clear mission establishes the organization's destination, while the strategy outlines the methods to achieve that goal.
Effective mission statements are foundational for guiding strategic objectives.