Unit – IV PRODUCTION, MARKETING, FINANCIAL & HUMAN

slide1. Unit – IVPRODUCTION, MARKETING, FINANCIAL & HUMAN RESOURCE MANAGEMENT OF GLOBAL BUSINESS<br>
slide2. 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<br>
slide3. 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<br>
slide4. Factors behind the selection of a location<br>
slide5. Global location decision Country Factors
Technology Factors
Product Factors
Government Policies
Organizational Issues
Business Strategy Issues
Inventory Management Policies<br>
slide6. 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…<br>
slide7. Scales of production Continuous production
EX: FMCG products
Batch Production
EX: Furniture, Auto Ancillary
Single Item Production
EX: Designers, Bicycle mfg<br>
slide8. Cost of Production Labour Costs
Capital costs and depreciation
Cost of materials<br>
slide9. Make or buy<br>
slide10. 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<br>
slide11. Advantages of Make or buy decision<br>
slide12. 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.<br>
slide13. Issues in global supply chain Costs
Exchange Rate
Time
Weather Conditions
Customs
Sourcing Plan
Supplier Selections
Additional considerations<br>
slide14. Significance of Making Lower Costs
Facilitating specialized investments
Proprietary product technology production
Improved scheduling<br>
slide15. Significance of Buying Strategic flexibility
Lower cost
offsets<br>
slide16. Global supply chain management Supply chain management deals with the total flow of material from supplier through the end user.<br>
slide17. Global supply chain business process<br>
slide18. 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<br>
slide19. Globalization of markets - Reasons Mass Production
Risk reduction
Increase Profits
Adverse Conditions of home country
To cater the demand of the foreign market
Unfulfilled needs of the customers by the domestic companies<br>
slide20. Marketing strategy The International Marketing Strategies should depends on the company’s
Marketing Orientation
Production orientation
Sales orientation
Customer orientation
Strategic marketing orientation
Societal marketing orientation
Targeting and segmenting markets<br>
slide21. Marketing orientations There are 5 common orientation
Production orientation
Sales orientation
Customer Orientation
Strategic Marketing orientation
Societal Marketing orientation<br>
slide22. Target Markets 3 Segmentations
By Country
By Global Segment
By Multiple Criteria<br>
slide23. Product Development Product development is the process of finding out the possibility of producing a product.
It involves the adding, dropping, and modification of item specifications in the product line for a given period of time.<br>
slide24. Factors contributing to product development Changing customer preferences
Technological changes
International laws and Govt. Policies
Product Life Cycle<br>
slide25. Challenges in product development<br>
slide26. Pricing Strategies Skimming Strategy
Penetration Pricing Strategy
Differential pricing Strategy
Geographic pricing Strategy
Product line pricing Strategy<br>
slide27. Pricing Strategies Factors affecting International pricing Strategies
Govt Interventions
Market Diversity
Export price Escalation
Fixed vs Variable Pricing
Relations with Suppliers<br>
slide28. Channel Management It is one of 4P’s ‘Place’
The term channel management has two meanings
1. The Physical movement of goods from the place of manufacture to a location in or close to points of purchase
2. A marketing channel can be seen as a concatenation of individuals and organizations involved in the process of making goods or services available for use or consumption<br>
slide29. Investment decisions Capital Budgeting
Country Risk Analysis
Sources of funds
Foreign Exchange Risk<br>
slide30. Sources of Funds Internal Sources
Funds from the parent (Equity / Loans)
Funds provided by operations
Loans from sister subsidiaries
Global cash management
Multilateral netting<br>
slide31. External Sources Debt financing
Venture capital
Equity financing
Factoring
Forfeiting
Equipment leasing<br>
slide32. Exchange rate risk The risk that a business operations or an investment’s value will be affected by changes in exchange rates.
Foreign exchange risk is the level of uncertainty that a company must manage for changes in foreign exchange rates that will adversely affect the money the company receives for goods and services over a period of time.<br>
slide33. Selection of expatriate managers There are four dimensions that seem to success in a foreign posting:
1. Self Orientation
2. Others Orientation
3. perceptual Ability
4. Cultural Toughness<br>
slide34. Selection of Expatriate managers<br>
slide35. Thank u<br>