International Business quiz 1

Quiz 1 chapter 1-3

27 cards·by annaleighnewall

What is a supply chain?

A web of all the entities/activities that are involved in producing and delivering a finished product to the end consumer

Upstream

suppliers, in many cases there are multiple tiers of suppliers. Starting with either raw materials or an input.

Focal firm

the internal activities that are a part of a company's GSC- most often include purchasing, logistics, operations and market channels

downstream

distributors, warehouses, wholesalers, retailers, end consumer

Global Supply Chain Management

Strategic function that involves the design of upstream activities/entities, the company's internal activities/downstream entities activity

Industry

All economies break economic activity into sectors.

10 U.S. industry sectors

Consumer discretionary, consumer staples, energy, financials, healthcare, transportation, telecommunications, IT, industrials, utilities

Primary ways to compete for advantage

1. Increase customer value 2. Increase shareholder value 3. Increase profitability and profit growth

Profitability is a function on 3 variables

value, price, cost

2 ways shareholder returns can be realized

dividends, capital appreciation

Profitability

the ability of a company to generate a profit on a consistent basis-result of how efficiently and effectively the company uses capital

Profit growth

the increase in net profit over time

2 ways to increase profitability

1. increase revenue 2. decrease expenses

What is the link between profitability and GSCM?

Generally speaking, costs associated with the SC account for about 50% of revenue

Alignment

coordinate the entities themselves and to ensure the appropriate linkages from one entity to the next

4 Broad industry drivers

1. market drivers 2. cost drivers 3. Government drivers 4. Competitive drivers

Market Drivers

largely depend on consumer behavior, the distribution channel and what the marketing practices are within the industry

Factors influencing market drivers

knowledge intensity and lifestyles, rising population, global firms

Industry Globalization Potential

likelihood that an industry will support and have the underlying conditions needed to facilitate the use of strategic GSCM

Industry conditions dictate the starting point for strategic implementation in 4 ways...

logistics, purchasing, operations, market channels

Logistics

Getting stuff from one entity or node of activity through the next- relevant on both upstream and downstream activities

NIC

Newly industrialized countries- account for most of global economic growth

Other costs of doing business

hiring, getting permits, bribery

Infrastructure that GSC's depend on

Transportation, utilities, communications and technology, security and risk, legal issues. documentation

EDI

Electronic data interchange

ERP

enterprise resource planning

RFID

Radio frequency indetification