Presentation--Why go global, 6.20.2011-1

Presentation--Why go global, 6.20.2011-1 - 1 million...

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Introduction to International Business BUSM 430 Professor Kristie Seawright
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You are a producer of widgets in Europe, and you have decided to outsource the production of some fairly bulky components of your primary final product. Your CEO has decided to produce in either Senegal or Vietnam, and has asked you to recommend one or the other. Which do you recommend? A decision
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Why go global? Opportunities to create, protect, or sustain competitive advantage
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How going global impacts competitive advantage 1. Expand sales 2. Acquire resources 3. Diversify sources of sales and supplies 4. Manage competitive risk
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1. Expand Sales 1.2 billion thirsty gullets
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1. Expand Sales Example: Cost for new product development = $100 million 100 customers = $1 million revenues need to be generated per customer to cover costs
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Unformatted text preview: 1 million customers = $100 revenues need to be generated per customer to cover costs 100 million customers = $1 revenues need to be generated per customer to cover costs 2. Acquire Resources 2. Acquire Resources 1. Raw Materials 2. Component Parts 3. Labor 4. Financing 5. Technology 3. Diversify Sources of Sales and Supplies 3. Diversify Sources of Sales and Supplies 4. Manage Competitive Risk 4. Manage Competitive Risk 4. Manage Competitive Risk Tires: a commodity Commodities tend to compete on price How firms go global? Disney Theme Parks • Anaheim • Orlando • Tokyo • Paris How firms go global? Firms “born” global International Business Business Mgt. 430 Introduction to the course: Course syllabus...
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This note was uploaded on 11/16/2011 for the course BUS M 430 taught by Professor Seawright during the Summer '11 term at BYU.

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Presentation--Why go global, 6.20.2011-1 - 1 million...

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