MKT & SCM Final Exam PDF

Foreign Trade Zones: Decrease Customs duty (avoid) Customs duty: Tax Main reason to implement tariffs: Protect local businesses first Government regulations is an issue faced when importing When paperwork is not 100% accurate and correct, delays then happen and it costs money to fix paperwork....

Foreign Trade Zones: Decrease Customs duty (avoid) Customs duty: Tax Main reason to implement tariffs: Protect local businesses first Government regulations is an issue faced when importing When paperwork is not 100% accurate and correct, delays then happen and it costs money to fix paperwork. USMCA: United States, Canada, Mexico Macro-influence - Geo-political issues Embargo: When we prohibit trade Inco-terms: Where responsibility shifts from buyers to shippers. Who is responsible during international shipping. Joint-venture: Two or more international companies are creating a NEW company or entity with each other Who is the U.S. top trading company: Mexico (2023) Zone of tolerance: Minimum to desired expectation of time allowed for arrival Doctors offices: Service dominant company (not providing products) Are service jobs increasing or decreasing in countries such as the US: Increasing In order to reduce service, we use trading ??? Communication gap: Difference between the service promised, and what the customer receives. Can reduce the gap by managing customer expectation What are the four things characteristics about services: Intangible, Inseparable, Heterogeneous, Perishable Delivery gap: The difference between actual service provided to customers and the service standards and policies. Directly interacting with customer and service: Is the delivery gap Entering foreign markets: Most risky strategy is setting up shop and least risky strategy is exporting Brick nations give us: Most opportunity for market growth What limits the amount of imported goods we can do: Quota Highest possible return: Direct investment Concerned about how to get there: Worried about infrastructure When you import more than export: A trade deficit What has to be in equilibrium in order for everything to cost the same: Exchange rate Four components of the global market assessment: Economic Analysis, Infrastructure and Technological Analysis, Governmental Analysis, Socio-cultural Analysis Hofstede’s High Power distance and Low individualism - Brazil (Latin America) What allows us to move goods and services (flow) across national borders: Globalization We live in a globally increasing world so it is important to be more: Global rather than local Gini Index: Goes from 0-100 and measures income distribution. 0 means everyone has the same. 100 means 1 person holds all the income. Gini Index of 20 compared to 40: The lower the number the more equally distributed. Differences between area and population: The more population in a dense area, you need more money and stores and everything. Who helps with knowledge gap: Locals Universal can be applied to everyone, but has to be applied differently compared to location. The cost of labor: Productivity, Skill-level, Cost What measures the yearly value of all finished goods and services produced within a countries borders: GDP What market is the only type of market where we care about consumers and competitors: Free Market What legislation is concerned about Safety and Health Issues: OSHA KPIs for sustainability: Green-house gas emission, energy consumption, waste from production Measuring the cost of sustainability is NOT a KPI for sustainability Order fill rate: Order number that needs to be filled divided by orders filled actually. If order fill rate is 100% than all orders filled Characteristics of metrics: Action-oriented, objective, results-oriented, Root causes, organizational goals Perfect order: When everything goes right, everything about the order is perfect 3 most important qualities data: of Accuracy, Completeness, Timeliness Components of a KPI: Starting-benchmark, Targe achievement, Time frame Sustainability KPIs are of great importance: Yes Can we manage things in supply chain without measuring them: No Check off your performance: Categorical scorecard Global Supply Chain Assessment Model Order: Background → Business Environment → Logistics Infrastructure → Supply Chain Practices & Issues GDP growth from one year to another is a measure of economic performance Service: any tangible offering that involves a deed, performance, or effort that cannot be physically possessed Customer Service: specifically refers to human or mechanical activities undertake to help satisfy their customer’s needs and wants Intangible: Cannot be touched, tasted, or seen Heterogenous: Technology, Training, Automation Perishable: Services can’t be stockpiled Knowledge Gap: reflects the difference between customers’ expectations and the firm’s perception of those customer expectations. Delivery Gap: is the difference between the firm’s service standards and the actual service it provides to customers The longer it takes to resolve service failure, the more irritated the customers Gini Index: GDP plus the net income earned from invest abroad Infrastructure - is the basic facilities, services and installations needed for a community or society to function Government actions: Tariffs, trade agreement, quotas, exchange control Culture: is the shared meanings, beliefs, morals, values, and customers of a group of people Power distance: willingness to accept social inequality as natural Strategic alliance: collaborative relationships between independent firms, though the partnering firms do not create an equity partnership Language culture factors: most countries use symbols rather than writing In free markets decisions are more likely made with consumers and competitors in mind Learn as much as possible about the country where you are operating Countries typically have significantly internal differences Categorical Scorecards: requires simple check-offs to items that describe performance across different categories Weighted point Scorecards: includes a variety of performance categories; provides weights for each category Cost-based Scorecards: attempts to quantify the total cost of doing business with a supplier over time