Professional Documents
Culture Documents
The Strategy of International Business
The Strategy of International Business
International Business
Chapter 12
Organizational infrastructure
Support
Information systems
activities
Human resources
Research and development
Materials management
Manufacturing Marketing
Primary activities
Figure 12.1
Par
Sal ts
es
Advertis Design
ing
Par
Pontiac LeMans Par ts
ts
© McGraw Hill Companies, Inc., 2000
12-6
Caveats
◎ When making location decisions:
◉ Consider trade barriers and
transportation costs.
◉ Assess political and
economic risks.
Unit costs
Moving down the curve reduces
the cost of creating value
B
Accumulated
output
Figure 12.2
◎ Reduce costs.
◎ Be responsive to local
needs.
Low High
Figure 12.3 Pressures for local responsiveness
High
Global Transnati
Strategy onal
Strategy
Cost
pressures
Multi
Internati
domestic
onal
Strategy
Low Strategy
Low High
Pressures for local responsiveness
Figure 12.4
Low High
Pressures for local responsiveness