Global Business Chapter 13

Front 1

service system

Back 1

a production system in which services dominate the value of the product

Front 2

production facilities

Back 2

the site where production takes place

Front 3

production stages

Back 3

steps in the production process

Front 4

Domestic outsourcing

Back 4

when the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in the same country

Front 5

Global outsourcing

Back 5

when the firm doing the outsourcing and the supplier that will provide the outsourced goods and services are located in different countries; also called offshoring

Front 6

manufacturing system

Back 6

a production system in which goods dominate the value of the product

Front 7

supply chain

Back 7

all activities associated with the flow and transformation of goods and services from the raw material stage to the end user, together with the corresponding flows of monetary funds and information

Front 8

Multi-currency

Back 8

a property of ERP systems to handle multiple currencies

Front 9

hollow corporations

Back 9

a company that only completes product design and outsources all other production process functions

Front 10

Supply-chain management

Back 10

the management of all activities in the supply chain, in order to minimize the total cost of the supply chain, and to maximize the value of the product to the end user

Front 11

components

Back 11

goods and services that integrate a product

Front 12

production system

Back 12

the system that businesses use to produce products

Front 13

make-or-buy decision

Back 13

determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers; also called the sourcing decision

Front 14

Multi-language

Back 14

a property of ERP systems to simultaneously operate in multiple languages

Front 15

global procurement

Back 15

when a firm buys components and raw materials globally

Front 16

Telecommunication networks

Back 16

collections of computer hardware and software arranged to transmit information from one place to another

Front 17

Internetworking

Back 17

the linking of separate networks into an interconnected network, where each network retains its own identity

Front 18

global production

Back 18

when a firm globally produces goods and services

Front 19

offshoring

Back 19

when a firm and the supplier are located in different countries

Front 20

Enterprise resource planning (ERP) systems

Back 20

software packages designed to integrate the majority of a firm’s business processes, execute all transactions related to the firm’s business processes being integrated, store each piece of data only once in an enterprise-wide database, allow access to data and information in real time, and operate in a client-server environment, traditional or web-based

Front 21

location decision

Back 21

determining if products made in-house will be produced in one or more facilities, and if these facilities should be located in one or more countries

Front 22

Operations management

Back 22

the management of the direct resources that are involved in the production system of a business organization

Front 23

Multi-national

Back 23

a property of ERP systems to handle the accounting standards of multiple countries

Front 24

raw materials

Back 24

materials used to produce components

Front 25

dual sourcing

Back 25

when components and raw materials are produced in-house and purchased from suppliers

Front 26

insourcing

Back 26

when the firm has been buying goods and services from suppliers, and then decides to make these goods and services in-house

Front 27

outsourcing

Back 27

when a firm has been making goods and services in-house, and then decides to buy these goods and services from suppliers