1. THE IMPORTANCES OF STRATEGIC POSITIONING
1.1. Pick a viable position on the efficiency frontier
1.2. configure internal operations to support that position
1.3. Have the right organization structure in the place to execute the strategy
2. HOW ARE A FIRM'S OPERATIONS CONFIGURED?
2.1. Operations can be though of a value chain composed of a series of distinct value creation activities
2.2. Value creation activities can be categorized
2.2.1. Primary activities
2.2.2. Support activites
3. FIRMS INCREASE PROFITS THROUGH INTERNATIONAL EXPANSION
3.1. 1. Expand their market
3.2. 2. Realize location economies
3.3. 3. Realize greater cost economies from experience effects
3.4. 4. Earn a greater return
4. IMPORTANCE OF LOCATION ECONOMIES
4.1. 1. Lower the costs of value creation and achieve a low cost position
4.2. 2. Differrentiate their product offering
5. HOW CAN MANAGERS LEVERAGE SUBSIDIARY SKILLS?
5.1. 1, Recognize that valuable skills
5.2. 2. Establish an incentive system
5.3. 3. Have a processs for identifying
5.4. 4. Act as facilitators
6. WHICH STRATEGY SHOULD FIRMS CHOOSE?
6.1. 1. Global
6.2. 2.
6.3. 3. Transnational
6.4. 4. International
7. WHAT IS STRATEGY?
7.1. A firm's strategy refers to the actions that managers take to attain the goals of firm
7.2. Firms need to pursue strategies that increase profitability and profit growth
7.2.1. 1. Add value
7.2.2. 2. Lower costs
7.2.3. 3. Sell more in existing markets
7.2.4. 4. Expand internationally
8. HOW IS VALUE IS CREATED?
8.1. The firm's value creation is the difference between V ( the price that the the firm can charge for that product given compepetitive pressure and C ( the costs of producing that products)
8.2. Profits can be increased by
8.2.1. 1. Using a differentiation strategy
8.2.2. 2. Using a low strategy
9. FIRMS LEVERAGE THEIR PRODUCT AND COMPETENCIES
9.1. Firm can increase groth by selling goods or services developed at home internationally
9.2. The success of firms that expand internationally depends
9.2.1. 2. Their core competencies
9.2.2. 1. The goods or services they sell
10. WHY EXPERIENCES EFFECTS IMPORTANT?
10.1. By moving down the experiences curve, firm reduce the cost of creating value
10.2. Firms can use a single plant to serve global markets
10.3. Economies of scale refer to reductions in unit cost achieved by producing a large valume of a product
10.3.1. 1. spreading fixed costs over large volume
10.3.2. 2. utilizing production facilities more intensively
10.3.3. 3. Increasing bargaining power with suppliers
11. PRESSURES EXISTS IN GLOBAL MARKETPLACE
11.1. Types of pressure in Global Marketplace
11.1.1. 1. Pressures for cost reductions
11.1.2. 2. Pressure to the locally responsive
11.2. Pressures for Cost Reductions greatest
11.2.1. 1. When major competitors are based in low cost locations
11.2.2. 2. Where there is persistent excess capacity
11.2.3. 3. Where consumers are powerful
11.3. Pressures for Local Responsiveness Greatest
11.3.1. 1.Differences in distribution channels
11.3.2. 2. Host government demands
11.3.3. 3. Differences in consumer tastes and preferences