8/13/2019 DNI _13 2013

1/18

Agenda

1Facultad de Negocios, UPCCarrera de Administracin y Negocios Internacionales

Debate: China, la fbrica del mundo, necesita mano de obra

Global production, Outsourcing and Logistics

Global Human Resource Management

Conclusiones

Semana 13

El alumno explica ydebate sobre loscomponentes de laestrategia de produccinglobal, logstica y RRHH.

Logro

8/13/2019 DNI _13 2013

2/18

Nuestro Mapa de Direccin

2Facultad de Negocios, UPCCarrera de Administracin y Marketing

Globalizacin vs Internacionalizacin The World is Flat

El Entorno Global

Estrategias de Internacionalizacin Factores para el comercio y la inversin, Las

Multinacionales.

Planeamiento yEstrategias de

Internacionalizacin

Joint ventures, Alianzas Estratgicas, IED Plan de Marketing Internacional

Entry Modes + EstrategiaMarketing Internacional

Organizacin de la Multinacional, Produccin ,Logstica, RRHH, Tecnologa de la Informacin

Organizacin y Control deOperaciones Empresa

Internacional

8/13/2019 DNI _13 2013

3/18

Los recursos y partners clave paraasegurar la produccin y la logstica

Dnde estn las fbrica msrentables del mundo? Estasseguro?

3Facultad de Negocios, UPCCarrera de Administracin y Negocios Internacionales

Despus del mercado, los

consumidores y la marca, esimportante

8/13/2019 DNI _13 2013

4/18

Global Production,Outsourcing, and Logistics

1

4

8/13/2019 DNI _13 2013

5/18

Production is the activities involved in creatinga productCan be both service and manufacturing activities

Logistics is the activity that controls thetransmission of physical materials throughthe value chain

Production and Logistics are closely linkedsince a firms ability to produce depends ontimely, high quality inputs

5

Strategy of Production & Logistics (1)

8/13/2019 DNI _13 2013

6/18

Production and logistics must be able to respondquickly to shifts in customer demand

In addition to lowering costs & improving quality, 2other objectives have particular importance

6

Production and logistic functions must be ableto accommodate demands for local responsiveness

Strategy of Production & Logistics (2)

1

2

8/13/2019 DNI _13 2013

7/18

Arguments for concentrating production to a fewlocations include

Fixed costs are sometimes substantialMinimum efficient scale is high

Flexible manufacturing technologies availableArguments to manufacture in all major markets thefirm operates in include

Fixed costs are sometimes lowMinimum efficient scale is lowFlexible manufacturing technologies unavailableTrade barriers and transportation costs remain major issues

7

Manufacturing Location

8/13/2019 DNI _13 2013

8/18

2 product features affect location decisions

Value to weight ratioProduct serves universal needs

2 basic strategiesConcentrating in a centralized location andserving the world market

Decentralizing them in various regional or national locations close to major marketswhen opposite conditions exist

8

Product Factors & Location Strategies

8/13/2019 DNI _13 2013

9/18

1. Initially, established where labor costs are low

2. Later, important centers for design and final assembly

3. Upward migration caused by pressures to:Improve cost structure

Customize product to meet customer demand

An increasing abundance of advanced factors ofproduction

9

Strategic Role of Foreign Factories

8/13/2019 DNI _13 2013

10/18

Advantages of making own components: Lower costs if most efficient producer Facilitating specialized investments Proprietary product technology protection Improved scheduling

Advantages of buying components: Flexibility in sourcing components Lower firms cost structure Alliances with suppliers give benefits of vertical integration

without the associated problems

Should a firm make or buy component parts?

10

Make or Buy Decision

8/13/2019 DNI _13 2013

11/18

Firms increasingly use Electronic Data Interchange (EDI) tocoordinate the flow of materials into manufacturing,through manufacturing, and out to customers

EDI systems require computer links between afirm, its suppliers, and its shippers; theseelectronic links are then used:

To place orders with suppliersTo register parts leaving a supplier

To track them as they travel toward a manufacturing plantTo register their arrival

11

Role of Information Technology & the Internet

8/13/2019 DNI _13 2013

12/18

Global Human Resource Management

2

8/13/2019 DNI _13 2013

13/18

Activities carried out by a firm to use its humanresource effectively

Staffing, management development, performance evaluation,compensation

Across national borders the process increasesin complexity

Environmental differences of: labor markets, culture, legalsystems, economic systems

HR differences: compensation practices, labor laws, motivationissues

13

Human Resource Management

8/13/2019 DNI _13 2013

14/18

What are the pros and cons of differentapproaches to staffing policy in internationalbusiness?

Why do managers fail in foreign postings?How can such managers be helped tosucceed?

What is the role of training, managementdevelopment, and compensation practicesin managing international human resources?

14

Key Issues

8/13/2019 DNI _13 2013

15/18

Staffing

Philosophy

Adapted

Strategy

Positive

aspects

Negative

aspects

EthnocentricKey overseas

positions staffed byhome managers

International

Puts qualifiedmanagers in place

Creates globalculture

Transfer of core

competences

Local managerresentment

Cultural myopia Immigration barrie

Costly

PolycentricKey overseas

positions staffed bylocal managers

Multidomestic

Decrease the effectsof cultural myopia

Inexpensive toimplement

Limits careermobility

Isolates HQ fromoverseassubsidiaries

Geocentric

Best for job type

Global&

Transnational

Uses HR efficiently Builds strong global

culture & informalmanagement

Costly

immigration barrie

Staffing & International Strategy

8/13/2019 DNI _13 2013

16/18

Managers assigned to unit in a countryother than that of their national origin

High failure rates for US MNCs (in order ofimportance)

Spouse cannot adjust culturallyManager cannot adjust culturally

Other family adjustment problems

Managers lack of personal or emotional maturity

Managers inability to cope with broader responsibilityoverseas

16

Expatriate Managers

8/13/2019 DNI _13 2013

17/18

Self-orientationStrengthen self-esteem, self-confidence, mental well-beingAdapt to food, music, sport, outside interestsSuperior technical competency

Others-orientationEnhance ability to interact effectively with host nationalsRelationship development, willingness to communicate

Perceptual abilityUnderstand why people in other countries behave the way they do

Non-judgmental, non- evaluative in interpreting others behaviorCultural toughness

How tough is host culture to adjust to?

17

Expatriate Success Factors

8/13/2019 DNI _13 2013

18/18

Performance evaluation

Two groups with conflicting perspectives/culturesevaluate the expatriate: the home managers nd thehost managers

CompensationDifferent national standards

Expatriate pay issues: base pay, cost-of-living,

housing, education, hardship, foreign-service-premium, double-taxation, medical/pension benefits,home leave

18

Performance Evaluation & Remuneration