Global Production Essay
• Explain why production and logistics decisions are of central importance to many multinational businesses.
• Explain how country differences, production technology, and product features all affect the choice of where to locate production activities.
• Recognize how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge.
• Identify the factors that influence a firm’s decision of whether to source supplies from within the company or from foreign suppliers.
• Describe what is required to efficiently coordinate a globally dispersed production system.
This chapter focuses on two …show more content…
Opening Case: Did Boeing Outsource Too Much Work on the 787?
Strategy, Production, and Logistics
Where to Produce Country Factors Technological Factors Product Factors Locating Production Facilities The Hidden Costs of Foreign Locations
Management Focus: Philips in China
The Strategic Role of Foreign Production Sites
Management Focus: GE Moves Manufacturing from China to the United States
Management Focus: Hewlett-Packard in Singapore
Outsourcing Production: Make-or-Buy Decisions The Advantages of Make The Advantages of Buy Trade-Offs Strategic Alliances with Suppliers
Managing a Global Supply Chain The Role of Just-in-Time Inventory The Role of Information Technology and the Internet
Critical Discussion Questions
Closing Case: Making the Amazon Kindle
CLASSROOM DISCUSSION POINT
Using the auto industry, ask students to reflect on the production decisions of several companies. Why does BMW produce cars in Alabama? Why does General Motors have a plant in China? Why does Nissan have design studios in Southern California? Try to get students to address all of the basic production