Global Production Essay

5835 Words Jun 8th, 2015 24 Pages
Global Production, Outsourcing, and Logistics

Learning objectives

• 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
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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

Chapter Summary

Critical Discussion Questions

Closing Case: Making the Amazon Kindle


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

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