BU491 Lecture 6: BU491 B Lecture 6 - Jan 27.docx
Document Summary
Do the most of the resources increase what we get. Global integration lower the cost of inputs. Economy of scale sell more and have better prices. Local responsiveness increase the value of outputs. Integration-responsiveness framework x-axis: differentiation benefits from national responsiveness y-axis: efficiency benefits from global integration automobiles. Heavy for shipping to another location higher costs. Ability to adapt to changing environment, manage changes. Scan and respond to discontinuities in global en. Dynamics of nd over time and global trends ** Scope economics divide the costs into different products and markets. Leverage the parent company"s knowledge and core competencies. Unable to take advantage of new ideas and innovations in the local markets. Recognize the differences and differentiate products to adapt. Duplications in operations losing the economies of scale operating as an individual business. No system to store and share the knowledge. Centralized and controlled largely by corp office. Downstream activities that are close to the consumers.
