chap07 - Chapter Seven Global Manufacturing and Supply...

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1 Prentice Hall, 2002 Chapter 7 Daniels Chapter Seven Global Manufacturing and Supply Chain Management
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2 Prentice Hall, 2002 Chapter 7 Daniels Chapter Objectives To understand the conditions that shape how companies set up foreign manufacturing facilities To appreciate the relationship between a company’s strategy and the design of its global manufacturing system To grasp the trade-offs that companies face in designing a competitive manufacturing system To understand the idea of global supply chain management To realize how global supply chain management helps companies meet international objectives To appreciate the decisions that companies face in making and moving products around the world
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3 Prentice Hall, 2002 Chapter 7 Daniels Introduction Managers must now resolve: Where in the world to put a factory How in the world to move goods and services from suppliers to factories to customers What in the world to do themselves versus outsourcing to someone else Complications arise from many multinational enterprises’ (MNEs’) reaction to tough global competition by rushing overseas to lower manufacturing costs or reach new markets
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4 Prentice Hall, 2002 Chapter 7 Daniels Introduction
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5 Prentice Hall, 2002 Chapter 7 Daniels Global Manufacturing Strategy We use the generic term manufacturing to describe the efforts of industrial and service companies to make products that are sold to foreign markets The idea of global manufacturing strategy brings into play a mix of economic, competitive, legal, political, and environmental conditions Common patterns of decision making among well-run MNEs suggest that the success of global manufacturing strategy depends on how well managers deal with the 4 Cs: Compatibility: the degree of consistency between where and how managers set up their foreign manufacturing system and the company’s competitive strategy There are many ways that managers can improve compatibility
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chap07 - Chapter Seven Global Manufacturing and Supply...

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