BUSI2025 Chapter Notes - Chapter 13-14: Factors Of Production, Cost Leadership, Organizational Architecture
Document Summary
Traditional motivations: resource-seeking motive: key supplies and low-cost production factors, market-seeking behavior. Emerging motivations: more integration: scale economies, ballooning r&d investments and shortening product life cycles, global scanning and leaning capability, competitive positioning: cross-subsidization of markets. Firms need to pursue a strategy when internationalizing: a strategy is defi(cid:374)ed (cid:862)as a(cid:272)tio(cid:374)s that (cid:373)a(cid:374)agers take to attai(cid:374) the goals of the fir(cid:373) for its o(cid:449)(cid:374)ers a(cid:374)d shareholders(cid:863) Strategy as a link between the firm and its immediate environment. Value creation: the firm as a value chain. Company is a chain of primary and support activities which transform inputs into outputs valued by customers. Primary activities: r&d, production, marketing and sales, after-sales service and support. Support activities: procurement/logistics, hr, it, company infrastructure. Realize greater cost economies from experience effects. Cost leadership: appeal to the average customer, strong focus on manufacturing and materials management. Differentiation: many niches of market segmentation, uniqueness through quality, innovation and customer responsiveness.
