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87 14 materials management materials management flow

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87-14 Materials Management Materials Management Flow of materials Transportation options and speed Inventory levels Packaging Storage
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87-15 Defining Global Operations Defining Global Operations International business - engages in cross-border transactions Multinational Corporation - has extensive involvement in international business, owning or controlling facilities in more than one country Global company - integrates operations from different countries, and views world as a single marketplace Transnational company - seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness
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87-16 Some Multinational Corporations Some Multinational Corporations Workforce Company Home Country % Sales Outside Home Country % Assets Outside Home Country % Foreign Colgate- Palmolive USA 72 63 NA Dow Chemical USA 60 50 NA Gillette USA 62 53 NA Honda Japan 63 36 NA IBM USA 57 47 51 Citicorp USA 34 46 NA
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87-17 Some Multinational Corporations Some Multinational Corporations Workforce Company Home Country % Sales Outside Home Country % Assets Outside Home Country % Foreign ICI Britain 78 50 NA Nestlé Switzerland 98 95 97 Philips Netherlands 94 85 82 Siemens Germany 51 NA 38 Electronics Unilever Britain & Netherlands 95 70 64
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87-18 Pontiac - the LeMans Included the Pontiac - the LeMans Included the Following Following About $6,000 heads to South Korea for auto’s assembly $3,500 goes to Japan for engines, axles, and electronics $1,500 goes to Germany for design $800 goes to Taiwan, Singapore, and Japan for smaller parts $500 heads to England for marketing $100 goes to Ireland for information technology the rest 2245 $7,600, goes to GM and its US bankers, insurance agents, and attorneys.
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87-19 Reasons to Globalize Operations Reasons to Globalize Operations Reduce costs (labor, taxes, tariffs, etc.) Improve the supply chain Provide better goods and services Attract new markets Learn to improve operations Attract and retain global talent Tangible Intangible
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87-20 Trade and Tariff Trade and Tariff Maquiladoras - Mexican factories located along the U.S.-Mexico border that receive preferential tariff treatment WTO - an international treaty that helps promote world trade by lowering barriers to the free flow of goods across borders NAFTA - a free trade agreement between Canada, Mexico, and the United States
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87-21 Trade Pays Trade Pays GDP (PPP*) per Person 1990 Growth Rates, % GDP (PPP*) per Person 1990 Growth Rates, % -1 0 1 2 3 4 5 More globalized poor countries Rich countries Less globalized poor countries *PPP – Purchasing Power Parity ( 靠靠靠靠靠靠
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87-22 Free trade may take us into the era of the floating factory - a six person crew will take a factory from port to port in order to obtain the best market, material, labor and tax advantages
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87-23 Achieving Global Operations Achieving Global Operations -Four Considerations- -Four Considerations- Global product design Global process design and technology Global factory location analysis Impact of Culture and Ethics
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87-24
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