Unit – IV PRODUCTION, MARKETING, FINANCIAL & HUMAN

Transcript:Unit – IV PRODUCTION, MARKETING, FINANCIAL & HUMAN:
Unit – IV PRODUCTION, MARKETING, FINANCIAL & HUMAN RESOURCE MANAGEMENT OF GLOBAL BUSINESS INTRODUCTION – GLOBAL PRODUCTION Global production provides an unparalleled opportunity for companies to grow into new markets while at the same time boosting their competitiveness. Reasons Import restrictions Raw materials Inputs Human resource Labor laws Logistics management Export Different consumers Location of production Meaning – location of production It determines the cost of marketing and availability of the products to the international customers. Meaning – production location Production location is concerned with the establishment of manufacturing facility at a particular place or location Factors behind the selection of a location Global location decision Country Factors Technology Factors Product Factors Government Policies Organizational Issues Business Strategy Issues Inventory Management Policies Scale of operations The term scale of production refers to the quantity or numbers of a product made. Its decisions will be influenced by the: Volume or quantities of products required Types of materials used to make the products Type of product being manufactured Input factors: Land , labour, capital, resources, and technology… Scales of production Continuous production EX: FMCG products Batch Production EX: Furniture, Auto Ancillary Single Item Production EX: Designers, Bicycle mfg Cost of Production Labour Costs Capital costs and depreciation Cost of materials Make or buy Make or buy decisions The make or buy decisions is the act of making a strategic choice between producing an item internally (in house) or buying it externally (from an outside supplier). The buy side of the decision also is referred to as outsourcing Outsourcing Advantages of Make or buy decision Global Supply Chain It is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end users. Issues in global supply chain Costs Exchange Rate Time Weather Conditions Customs Sourcing Plan Supplier Selections Additional considerations Significance of Making Lower Costs Facilitating specialized investments Proprietary product technology production Improved scheduling Significance of Buying Strategic flexibility Lower cost offsets Global supply chain management Supply chain management deals with the total flow of material from supplier through the end user. Global supply chain business process Quality considerations Quality defined as meeting or exceeding the expectations of the customer. It is the conformance to specifications, value, fitness for use, support and psychological impressions Globalization of markets - Reasons Mass Production Risk reduction Increase Profits Adverse Conditions of home country To cater the