Rechtswissenschaften

+ increases overall sales, improve market share

+ economies of scale (reduce per-unit cost of manufacturing)

+ firm can use export for testing before doing FDI

+ minimizies risk and maximizes flexibility

Yes:

- quick delivery

- inhouse production --> flexibility

- centralized design & development

= The mangement of the flow of goods and services

- involves the movement and storage of raw material

- movement of finished goods from point of origin to point of cunsumption

- design, planning, exectuion, control and monitoring of supply chain activities

- aim creating net value

the procurement of products from independent suppliers (or subsidiaries located abroad) for consuption in the home country.

- sourcing from numerous suppliers requires efficient supply-chain mngt

CAPTIVE sourcing = sourcing from firms own production facilities

CONTRACT manufacturing: focal firms contracts with an idnependent supplier

The relocation of a business process (or entire manufacturing facility) to a foreign country

The procurement of selected value-adding activities (eg production of goods, HR,  IT, customer service) from independent suppliers

--> giving a part of the chain to another copany so they do it for us.

= Business Process Outsourcing

- outsourcing of business functions to independent suppliers (eg HR, IT, Finance)

Back  office = UPstream business (payroll, billing)

Front-Office = DOWN-Stream (technical support)

Should we conduct a particular value-chain activitiy ourselves, or should we source it from an outside contractor?

core competences = internalization

Third party logistical providers = FedEx, UPS

the firms integrated network of sourcing, production, and distribution, organized on a world scale, and located in countries where competitive advantage can be maximized.

0. Endogenous

1. Man-made disruptions

2. Innovation

3. Customer dynamics

4. Macroeconomics

5. State

6. Natural disruptions

Phänomen im Risikomangement

- grosse Nachfrage an Lieferanten weitergegeben

- grosse Mengen aufgegeben um von Rabatten zu profitieren

- Hamsterkäufe da Angst um Knappheit und Versorgungsengpässe

= Preisschwankungen

--> key word: communication

Meeting or exceeding the expectations of customers

quality is in the eye of the customer

eg create a tolerance line so you can intervene before you overcome the tolerance = you will never produce bad parts

--> ISO zertifizierung

-Total Quality Management (TQM)

-Six Sigma

Plan

Do

Check

Act

1. Packing

2. Labeling (when its not correct they can block our shipments eg, give it to DHL to be on the right side)

3. Documentation

4. Insurance requirements

Ocean transport: Cheap, time consuming

Land Transport (Truck, Train) Costly, flexible

Air Transport for light and valuable things: most expensive, quickes, highly predictable

- Use container bc of protection, you can stuck dem up on each other

- fast in loading and unloading

- standardized containers (6/2.4/2.6)

- carry thousands of containers

- Humidity

- loss of cargo

- damage

- impact (dirt)

1. Receiving, storing and delivering products

2. Just in time (JIT) --> just as they are needs, efficient but supplier needs to handle it

3. Just in sequence (JIS) --> delivering products in the order the customer needs them

--> Efficient and cost-effective inventory mngt often depends on automated invetory systems

1. job losses in home country (creates new jobs ins other country)

-Offshoring is a process of creative destruction (Zerstörung) creates new jobs but also destroys jobs

2. Reduced national competitiveness (losing skills, know how)

3. Reduction of the organizations capability for creative organizational development

4. Long held knowledge and skills could drain away to other countries

5. Lower labor costs improves companies profits BUT it could also pull down home countries wages = decrease living standard

6. MNE may be ineffective in proetecting the environment, promoting human rights, labor practises and working conditions abroad

- keep the cost of doing business low

- ensure a strong educational system

- Maximize worker flexibility to help those who lose jobs find other positions

- Implement rules to guarantee minimal ethical behavior over the supplychain

global sourcing = global procurement = global purchasing = buying products and services from foreign sources and bringing them into the home country.

- Technological advances (internet)

- falling costs (tarrifs have declined)

- Entrepreneurship

1. Large-scale manufacturing (must be cost efficient)

2. High labor intensty

3. Uniform customers need and standardized technologies (eg automobiles)

4. Established products with a predictable pattern of sale

5. Information intensity whose function can easily be transmitted through internet

6. Outputs that are easily transmittet through internet (eg payroll, accunting)

- focus their resources on performing instead of administration things (eg R&D, building relationships, etc)

- access to qualified personell abroad (Disney drawers from Japan)

- increased speed to market

- access to new markets

half of all outsourcing arrangements are terminated earlier than planned:

- lower-than-expected costs savings (more complex than expected, needs time)

- environmental factors (currency fluctuation, labor strike)

- weak legal environment ( intellectual property law)

- inadequate or low-skilled workers

- overreliance on suppliers (put work aside when gain a more impoartant client)

- risk of creating a competitor

- Erosion or morale and commitment among home-country employees (work side by side can reduce commitment)

- job losses

- reduced national competitiveness

- declining standards of living

- Go offshore for the right reason (cost cuttigns will deline after the first year)

- Get employees on board (alternatives for laid off workers)

- choose suppliers carefully

- Euro brings economic stability bc same currency = no exchange losses

- increases transparency and competition in Europe

- a small country (eg Dutch) has now more power

- foreign bond markets

- local stock exchanges

- foreign banks

- venture capital firms

- intracorporate financing

--> it depends from where they get the cheapest money

firm obtains capital by selling shares of stock

+ capital without paying interest rates

- firms ownership gets back

loans from banks (in exchange for repayment of interests) and sale of bonds (Obligationen)

+ firm does not give up ownership

- borrowing money from banks is difficult bc of banking law, fluctuating exchange rate

--> using debt financing can add value to the firm bc some governments allow firms to deduct interest payments (Zinszahlung) from their taxes.

1. Decide on the Capital Structure: ideal long-term mix of debt vs. equity financing

2. Raise Funds (FlüMi) for the Firm (Wertschriften, Bankdarlehen..)

- global money market  = short term financing

- global capital market = long term financing (acces from a larger pool = competitive interest rates)

3. Working Capital and Cash Flow Management: Nettoumlaufvermögen (=working capital) = Umlaufvermögen - Verpflichtung. The bigger the company the bigger the working capital, should keep me going for 3-6 months

4. Capital Budgeting (Investitionsrechnung) = which projects fit, which are too risky

5. Currency Risk Management = in general keep as few currencies as possible bc investing gives us interest payments. make a black list which currencies you should not have too much of it.

6. Manage the Diversity of International Accounting and Tax Practices = learn to operate in a global environment with diverse accounting practices and international tax regimes