MGMT 3225 Lecture Notes - Lecture 12: Economic Surplus, Information System, Multinational Corporation
Document Summary
Operations: the firm as a value chain: operations: a value chain composed of a series of distinct value creation activities, including production, marketing and sales, materials management, r&d, human resources, information systems, and the firm infrastructure. This function can create a perception of superior value (v) in the minds of consumers by solving customer problems and supporting customers after they have purchased the product. Support activities: the support activities of the value chain provide inputs that allow the primary activities to occur. Global expansion, profitability, and profit growth: expanding globally allows firms to increase their profitability and rate of profit growth in ways not available to purely domestic enterprises. Location economies: location economies: cost advantages from performing a value creation activity at the optimal location for that activity, locating a value creation activity in the optimal location for that activity two effects: It can lower the costs of value creation and help the firm to achieve a low-cost position.
