Fragebogen Teil 5

A value chain is a set of activities that an organization carries out to create value for its customers. Divided into to activitiy categories, in primary activities and support activities.

Primary activites = Operations, R & D, Production, Sales and Marketing,

Support activities = Management ( Strategy & Planning, Organization, Human Ressources), Accounting & Reporting, Corporate Finance

• Centralised

• Value creation through Economies of Scope (lower cost production —> through wider range of products)

• Medium relatedness between countries

• Transferring skills and knowledge is competitive advantage

• moderate need for coordination with few integrating mechanism and moderate need for cultural controls

• Highly decentralised and locally responsive

• Value creation through local responsiveness

• Low relatedness between countries

• Portfolio management is competitive advantage

• Low need for coordination with little/no integrating mechanisms and little need for cultural controls

  
  

  Advantages

  • Good adaptability to local markets

  • Limited coordination needs for

    central management/ headquarters

  Disadvantages

  • Redundancies (dev. of local strategy,

    org. culture, processes)

  • Little incentive for collaboration(knowledge sharing)

  • Limited potential to achieve economies of scale

• Highly centralised

• Focused on efficiency

• Value creation through economies of scale

• High relatedness between countries

• Resource sharing is competitive advantage

• High need for coordination with many integrating mechanisms and high need for cultural controls

• Locally responsive

• Value creation through scale, scope and responsiveness

• no national home

• Varying relatedness between countries

• Restructuring, sharing, transferring, and cocreation are competitive advantages; focused on efficiency, learning and sharing; balancing relatedness and unrelatedness

• Very high need for coordination with very many integrating mechanisms and very high need for cultural controls

Advantage

1) Yes because of EOS

2) use the comparative advantage

3) easier to plan Production plan

protecting the global property

Disadvantage

1) dependent on one country

2) difficult to respond to changes in demand

Sales is always interactive between people and culture. Focus is on the customer in the special country.

Show the customer one face. Standatasize Sales Representatives —> Speaking the same languages, have the same attitude

interactive with its happenning at the place and often related to national laws, know labour laws to

Ghemawat so-called AAA framework offers three generic approaches to global value creation.

Adaption —> to adapt the product of a company to local needs and preferences, such as Mc Donalds in India for selling just Burger with chicken multinational Strategy

Aggregation —> Achieving EOC (VW and Toyota produce a lot of cars. (Global Strategy)

Arbitrage —> Reducing costs by using national advantage.

Apple , concentrate their Marketing in US

Production in Asia, Innovation ( Software and Design also in US.)

GDP growth and Income per Capita.

GDP growth the average

Income per Capita

=Total income

———————

population number (country)