Organisationstructure&operationsboth influencesandareinfluencedbystrategyof co. ExDifferentiationstrategyisadoptedthen creationof fd distinctproduct d /servicesfrom f competitors.QualitynotCost. If fcostleadership l d h strategy.????

InternationalSourcing/integration. Facilitieslocation Standardisation d d of ff facilities l Contractmanufacturing. Strategicrole l of ff foreignplant. l Supplychainmanagement. Quality l standards. d d InternationalisationofR&D

1.INTERNATIONALSOURCING&VERTICAL INTEGRATION. Make k orBuy Iforgdecidestomakeallcomponentsinhouse itisalso l asvertical lintegration. Itcanbeforward/backward. Reasons/advantages d Controloncost,supply,quality,financial strength, h protectingproprietarytechnology. h l

Whenafi Wh firmdecides d id to t buy b anyservice i or processisreferredasoutsourcingstrategy. ExHousekeeping p ginany yco. Advantages/reasons Itallowsfirmtofocusoncorecompetencies. Createacompetitiveadvantagewhilereducing thecost. Minimise investmentinnonvalueadded functions. functions Possibilityfromgettingordersfromcountrries pp arelocated. wheresuppliers

Dividingtheactivitiesintocategories Strategicactivities Critical lactivities Normalactivities.

Lookingatthebasiceconomiesof f outsourcing. Analysing l risk kassociated dwith hit. What&whatnottooutsource.Exwings Analysing l operational lrisk kassociated dwith hit. (dependency) Offsetting. ff

Countryfactors. Resourceavailability, f culture,infrastructure. Technological h l lfactors f single/ l multiple l l location. Product d factors f value l toweight, h needs d

Highthenoptimumlocation. Lowthenmultiplelocation. Universalneeds Differentiatedneeds.

Standardisationisused sedby b someco. co which hich offerscertainadvantages 1 Abilitytoshiftproduction&components 1.Ability acrosscountries. 2 Lessneedforproductionplanning&design 2. 3.simplicityincomparingdifferentplants. 4 Efficientinventorymgt. 4. mgt 5.expertiseinsettingnewproductionunits.

Placinganordertoalocalmanufacturer f whichco.sellseitherinthatcountryor worldwide. ld d Lessinvestment. Avoidance d of fFDI Difficultyinmaintainingquality,standards, d ff difference inmgt.styles. l

Roleof subsidiaryas faforeign f

Lowcostlocation Centreofexcellence R&D Assemblinglocation.

Asupplychainmayincludecustomers, retailers,distributors,manufacturers, suppliers l . Logistics fromsuppliertofirm&firmto customer.(distance, d regulatory l measures,transportmodes) Storagelocation l d decision Inventorydecisions Transportationdecisions d

Flowof suppliertofirm. fmaterialfrom f f Supplyofmaterialfromwithinunitsitself. 3basic b d differences ff b b/wd domestic& internationalMM 1.Distanceinvolve l inshipment. h 2.differenceintransportationmodes. 3.regulatory l context.

Qualityrefers f totheabilityof faproduct/service tomeetcustomerexpectations. TQMcustomersatisfaction, f employee l involvement,continuousimprovement. Settingbenchmarks. b h k Itisateamapproach, Decisionsbased b donfacts f notopinions. Qualitytools. Inclusion l of fsuppliers l inQM.

Organisedefforts directedtowards ff increasingscientificknowledgeand product/process d innovation. BasicresearchKnowledge Applied l dresearch hachieving h commercial l applications. Development l convertingapplied l dintonuseful f l commercialapplication.

1.SettinginHomecountryonly. 2.Settinginforeigncoaspressurizedbyhost country. NotdoingR&Datallassupplertakescareof it.

Inhost h countrywith halocal l lpartner. GloballylocatingR&Dcentersandtheseare attached h dtoglobal l b lproduct d research hdivision d