Wi Ti Ge R
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MGTC44H3S
.viewed best in 
Int'l Business Management

A 3rd year undergraduate course in the Division of Management,  University of Toronto at Scarborough

changes were last made to this web page 2004 Dec 01
 
Section A Section B. Section C. Section D. Section E. Section F. Section G.
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. The purpose of this section is to introduce the student to the important of the Supply Chain in International Business. Upon completion of this section, students will be able to 
  • explain the basic activities of an Intranet and Extranet in the context of a Supply Chain and international business
  • understand the role that Customer Relationship Management plays in enhancing the effectiveness of the Supply Chain
  • appreciate the increasing role of Human Resource Management in the context of the "environments" being equal
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Countertrade - see  www.witiger.com/internationalbusiness/countertrade.htm
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Chapter 18

page 631-633

 


 
Global Mfg. Strategies

"The success of a Global Manufacturing Strategy depends on four key factors

1. Manufacturing Compatibility
2. Manufacturing Configuration
3. Coordination
4. and Control"



1. Manufacturing Compatibility
cost minimization strategies - AKA trying to save money
  • economies of scale
  • "low-cost labour areas"
    • - labour the biggest component so this is how companies save money
2. Manufacturing Configuration
three basic configurations
  • centralized in one country - like heavy machinery company Caterpillar
  • manufacturing facilities in specific regions to service those regions - like IBM
  • multidomestic facilities in each country - like Bata shoes
3. Coordination
"the linking or integration of activities into a unified system"
4. and Control"
"... one aspect of control is the organizational structure"
org charts
  • by geography - Latin America division
  • by product - men's clothes, women's clothes
  • by customer - wholesalers, government accounts, institutional accounts
  • by function - shipping dept. mrkgt dept., accounting dept.
control is also - for lack of a better word, bossing, - that's telling people what to do and when and how
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Global Manufacturing Strategy
      Plant Location Strategies

"Once MNEs determine that they will engage in FDI to supply foreign markets, they need to determine which countries to invest in and where within each specific country" text page 633

Textbook discusses General Motors choice of Thailand over the Philippines

text notes "... there are more auto suppliers..."
They don't say this explicitly, but it refers to the fact that in Thailand, there are a critical number of First Tier Suppliers and Second Tier Suppliers - which we in MGTC44 have discussed earlier in this section as being important.

Attracting large MNEs to invest is a bit like a country winning the Olympics - a very contentious issue and raises many questions - some having to do with ethics.
 

Plant Location strategies is not a frequent consideration for Canadians in international business since our medium and large sized companies are more involved in resource extraction compared to manufacturing consumer goods.
Global Manufacturing Strategy
     Layout Planning Strategies

Text discusses Samsonite using the manufacturing technique of autonomous cells - which has also been used to great success by Japanese auto manufacturing companies in Japan, and to some small extent in North America.

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Chapter 18

page 636


 
Intranets / Extranets

We [MGTC44] will discuss some of the material in the text re: Intranets but in addition, the professor will ask you to note some additional information below.
 

text says page 636 
"... 40% of firms had customer extranets... 20-25% had supplier extranets..."

These exact percentages are not so important -  keep in mind one thing:  in 2004, a reasonable number of large size companies have corporate intranets, and many medium sized companies are also learning the advantages of intranets, but still only a small portion of SME's actually use extranets for supply chain management. Extranets remain primarily a tool used by large sized companies.
 

"The real attraction of the Internet in the global supply chain management is that it not  only helps automate and speed up internal processes in a company through the intranet but also spreads efficiency gains to the business systems of its customers and suppliers"
Page 636 Text

translated -

it helps our company be more competitive
it also helps our partners be more competitive
...

Intranets
and 
Extranets
 
 
 
 
 
 
 
 
 
 
 

go here to download the ppt for Chpt 7
 http://www.prenhall.com/divisions/bp/app/turban/cw/ppt/

Applications of Intranet page 244- Turban Text
the major functions that an Intranet can provide

  • corporate / departmental / individual web pages
  • database access
    • for better information about customers
    • inventory
    • assets and resources
  • search engines and directories
    • for companies handling massive quantities of text documents
    • eg. insurance and banking companies
  • interactive communication
    • chatting, audio, videoconferencing
    • in order to save costs
  • document distribution and workflow
    • very helpful in organizations were more than one person handles a file
    • eg. government agencies, eg. licensing agencies, health offices etc.
  • groupware
  • telephony
  • integration with electronic commerce
    • internet based sales have to be processed
    • processing can be economized with intranet structure for order fulfillment
    • eg. Amazon.com
  • extranet
    • geographically dispersed parts of the organization
.

 
 
 
 
 
 
 
 
 
 


Intranets
and 
Extranets


Information that is most often included in Intranets
(this list comes from some notes in the Turban text on page 244 - additional points added in by WTGR)
 
  • corporate policies
  • corporate procedures for caring out complex actions with many variables
  • timetables for people and events
  • scheduling information
  • directories
    • people
    • names, tel contacts
    • titles and functions
  • departments
    • part of reducing duplication of activity
    • enhanced use of existing resources
    • departmental "evangelism" (common in large organizations)
  • Human Resources
    • benefits and services to employees
    • performance evaluations guidelines
    • employment equity information and guidelines
    • stock information
    • intra-corporate employment opportunities
    • educational information
      • corporate training programs
      • schedules
      • descriptions, curriculum, participation forms
      • example  http://www.worldbiz.com/library.html 

      •  International Business Reports for Corporate Intranets
  • product catalogs
  • purchase orders
  • manuals
  • to enhance capability of service technicians 
  • to empower wholsalers and retailers
  • services
    • travel services
    • in-house services , eg. printing
  • archives
    • text, stories, documents, records
    • images (eg. for a newspaper)
    • video clips (eg. for a broadcaster)
.
 
http://www.witiger.com/ecommerce/intranets~extranets.htm  http://www.witiger.com/ecommerce/intranets~extranets.htm
This is a Unit on Intranets and Extranets which is mostly used for e-commerce classes - however since many medium and large sized companies involved in international business have online situation, the use of Intranets and Extranets has become a part of "doing International Business"
.

. CRM is a part of Supply Chain Management. 

Why? 

Because in a Market Oriented company -customers voting with their wallets, lead the direction of what products will be successful with particular FABs. The process of satisfying the customer leads to taking information about that relationship, and using it to affect production and delivery of the product.

WTGR

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Basics of CRM

"Customer Relationship Management (CRM) is developing into a major element of corporate strategy for many organisations. CRM, also known by other terms such as relationship marketing and customer management, is concerned with the creation, development and enhancement of individualised customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value....Narrow functionally-based traditional marketing is being replaced by a new form of cross functional marketing - CRM.... the focus is shifting from customer acquisition to customer retention"

Why is time and money spent on CRM worthwhile, Payne notes "Research shows that a 5% points increase in customer retention yields a profit, in net present value terms, of between 20% and 125%"

 http://www.ittoolbox.com/peer/AP_website.htm
Professor Adrian Payne, 
Director Centre for Relationship Marketing, Cranfield University
http://www.ittoolbox.com/peer/AP_website.htm
 

CRM for Dummies
 http://www.crmassist.com/peer/docs/crm_dummies.asp
by Sambasivan TN for Origin Information Technology

"...why the sudden talk about CRM?... With a general slowdown of the global economy companies are finding it hard to get going....Gone are the days where you had a technological edge over your archrival. With new and affordable technologies your competitor is just a matter of days behind you in terms of product launch. So what are you left with as a key-differentiating factor? ...customers need to be looked at more seriously than ever before ... information is the key to success. Information about the customer made available to the person coming in contact with the customer can go a long way not only in clinching the deal but also creating a very good relationship with the customer for future business...
Organizations over the past had products as their key focus. The way an entire organization works would be built around this focus area. Since this cannot be used as a key-differentiating factor anymore, companies have begun to focus on the customers. This not only brings about a change in focus, but also changes the way the entire organization works"
 

WTGR - does this mean you torture yourself to satisfy every single customer as best you can? Answer, no. You use various software tools and information tracking methods to determine which customers spend the most money on particular products, and you then focus on them


Sambasivan adds
"not all customers are equally profitable. The key herein lies in identifying the customers who pay you more for the kind of services that you offer and focusing your valuable efforts into taking special care of those customers. This not only helps by improving your bottom line, but also helps you to focus your efforts where it is required the most."
 

WTGR - in the past companies relied on sales people with good personal contacts and networking skills to build up good will with customers and create CLV - Customer Lifetime Value - problem was, when these people left the organization, all these contacts went with them (in fact many good salespeople are often headhunted to obtain new accounts). These situation became one of the weakness of organizational information structure - that being the point that people possessed information, not institutions. CRM is an attempt to build "institutional knowledge" regardless of the individual salespeople's personal contacts and information.


Sambasivan concludes
"The need for accurate and timely information to the sales team is really important. The advantages being that the knowledge gathered by a particular person who has been interacting with the customer, now lies with the organization and not with the person alone."

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..
http://www.witiger.com/internationalbusiness/TQM.htm..

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KAISEN see  www.witiger.com/internationalbusiness/kaizen.htm 

TQM and Kaizen are mentioned briefly in the text - we value these discussions so we have expanded on this. In addition; these two concepts are based on the fact that consideration of the customer is more and more important; therefore we will take a brief space to talk about relationship building with the customer -  AKA C.R.M.

FYI - CRM is increasingly more and more important when you consider the international customer base of many consumer product companies.

ISO 9000

Supplier Networks

Inventory management

FTZs - Foreign Trade Zones

Transportation Networks
(the fourth P - Place,  in "The 4P's)
 
 
 
.Key
Points for
Understanding
The environments within which international business is carried out in 2004 and beyond, are increasingly competitive.
  • The technological environment is such that technology supremacy is fleeting and since it does not last long - cannot be considered a strong advantage of a company.
  • The economic environment is effected by too many uncontrollable factors which means a stable economic situation is less certain and can be effected negatively by things which large companies and federal governments have no control over.
  • The political environment responds to the socio-cultural environment - which in many countries, is undergoing the stresses of large immigration movements and cultural and religious frictions. Very few regions of the world are free of conflict in this area so no place has a distinctively advantageous political environment
The one area in which companies can become more competitive is having the best people and having those people serve their customers in the best way.

Therefore one of the key things for companies in the "new new" economy is to focus on the people in the company, and the customers they serve - ergo, Human Resource Management has become a "big issue" for international business.

WTGR

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Human
Resource
Mgmnt
 
 
 
 
 
 
 
 
 
 

Human
Resource
Mgmnt

Chapter 21
 
Human Resource Management
in
International Business
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. Although Dilbert has many jokes about Catbert, the "Evil H.R. Director", fact is, morale of employees is increasingly important, especially in international business, since companies are more and more challenged to cut expenses, and the # 1 expense cut is staff cuts - meaning, more productivity out of fewer people.

The way to get more productivity is partly by enhancing morale.

WTGR

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Human
Resource
Mgmnt
 
 
 
 
 
 
 
 
 
 
 
 
 

Human
Resource
Mgmnt

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. There is good information in the text on this topic, which we will refer to, and there are also a good number of sites which discuss HRM issues in an International Business context.

WTGR

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This web site discusses HRM issues specific to the Asia Pacific region. 

There are a number of good articles available herein which would be useful for you to read.


 
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