COMMERCE 4SA3 Lecture Notes - Lecture 11: International Business, Voer, Experience Curve Effects
21 Feb 2017
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Strategy: a(cid:272)tio(cid:374) (cid:373)a(cid:374)agers take to attai(cid:374) the fir(cid:373)"s goal goal is to maximize long-term profitability. Profitability: ratio or rate of return managers can increase profitability by pursuing strategies that lower costs or add value to the firms products. Managerial philosophies affecting design: ethnocentric polycentric geocentric. Value creation 2 (cid:272)o(cid:374)ditio(cid:374)s deter(cid:373)i(cid:374)e a fir(cid:373)"s profits: a firm has high profits when it creates more value for its customers and has lower cost. Differentiation strategy focuses on increasing the attractiveness of a product: low cost and differentiation 2 strategies for creating value and attaining a competitive advantage. The firm as a value chain composed of value creation activities like production, hr, r&d, sales. Support activities: provides inputs that allow the primary activities to take place. Includes logistics, information system, hr, company infrastructure (org. structure, control systems and culture of the firm) Firms that operate internationally are able to:
