BA101 Introduction to Business International Business Module
BA101 Introduction to Business International Business Module
BA101 Introduction to Business International Business Module
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<strong>BA101</strong> <strong>Introduction</strong> <strong>to</strong> <strong>Business</strong><br />
<strong>International</strong> <strong>Business</strong> <strong>Module</strong><br />
<strong>International</strong> Supply Chain<br />
Management
Learning Objectives<br />
� Understand technology innova<strong>to</strong>rs<br />
and adopters and centers of<br />
consumption<br />
� Review global trends aging and low<br />
cost manufacturing centers<br />
� Review <strong>International</strong> Supply Chain<br />
Management<br />
� Understand steps in movement of<br />
goods
A Map of the New World
The World Economy Today is … Flat<br />
Where do you think the centers of consumption are…?
Aging Populations
Low-Cost Labor Source Pre-2008
Logistics & Supply Chain Management<br />
Logistics<br />
“Logistics is that part of the supply chain process that plans,<br />
implements, and controls the efficient, effective forward and<br />
reverse flow and s<strong>to</strong>rage of goods, services, and related<br />
information between the point of origin and the point of<br />
consumption in order <strong>to</strong> meet cus<strong>to</strong>mers' requirements.”<br />
<strong>International</strong> Logistics<br />
The process of planning, implementing, and controlling the flow<br />
and s<strong>to</strong>rage of goods, services, and related information from a<br />
point of origin <strong>to</strong> a point of consumption located in a different<br />
country.<br />
The Eli Broad Graduate School of Management,<br />
Michigan State University, 2008
The Eli Broad Graduate School of Management,<br />
Michigan State University, 2008<br />
Timeline of Supply Chain
Logistics & Supply Chain Management<br />
Supply Chain Management<br />
� Supply Chain Management integrates supply and<br />
demand management within and across companies. It<br />
includes coordination and collaboration with channel<br />
partners, which can be suppliers, intermediaries,<br />
third-party service providers, and cus<strong>to</strong>mers.<br />
<strong>International</strong> Supply Chain Management<br />
� Supply Chain Management is inherently global, with<br />
firms buying from foreign suppliers or selling <strong>to</strong><br />
foreign cus<strong>to</strong>mers, but domestic logistics activities<br />
and international logistics activities are distinct and<br />
managed differently.<br />
The Eli Broad Graduate School of Management,<br />
Michigan State University, 2008
Elements of <strong>International</strong> Logistics<br />
<strong>International</strong> Logistics’ Characteristics:<br />
� The environment in which international logisticians operate is<br />
quite different from the domestic environment.<br />
� The decisions regarding international transportation are<br />
eminently more complicated.<br />
� The number of intermediaries involved is greater .<br />
� The inherent risks and hazards of international transportation are<br />
much more significant.<br />
Specifically:<br />
� <strong>International</strong> insurance is much more complex.<br />
� <strong>International</strong> means of payment are more involved.<br />
� Terms of trade are much more complicated.<br />
� The crossing of borders represents specific challenges.<br />
� Inven<strong>to</strong>ry is managed differently.<br />
The Eli Broad Graduate School of Management,<br />
Michigan State University, 2008
Inco-terms in Action – Movement of Goods
The Economic Importance of<br />
<strong>International</strong> Logistics<br />
� The costs of <strong>International</strong> Logistics represent<br />
about 15% of the <strong>to</strong>tal volume of the<br />
international trade; that is about US$ 1.5<br />
trillion world-wide.<br />
� In addition, <strong>International</strong> logistics generate<br />
approximately US $500 billion in additional<br />
government revenues (Cus<strong>to</strong>ms duty).<br />
The Eli Broad Graduate School of Management,<br />
Michigan State University, 2008
Our New Realities…
Resources<br />
� Global Edge Video Deposi<strong>to</strong>ry: (right click and select open<br />
hyperlink)<br />
� Selected Topical Videos from Deposi<strong>to</strong>ry:<br />
On Wednesday, April, 2007, Dr. Robert Rosen, CEO of Healthy Companies, and author of “Global<br />
Literacies ” was interviewed on Ask the Experts. He discussed "Skills Needed <strong>to</strong> Succeed in a<br />
Globalized World. Below are the excerpts. (right click and select open hyperlink)<br />
• What are the four global literacies highlighted in your book “Global Literacies”?<br />
• What can companies do <strong>to</strong> globalize?<br />
• How can young professional develop these global literacies without leaving their<br />
borders?<br />
• What can Americans and others do <strong>to</strong> overcome ethnocentrism?<br />
• How can we learn about other cultures?
Resources<br />
Video: (right click and select open hyperlink)<br />
• Ahead of G8 Summit, Attention Turns <strong>to</strong> Food Crisis<br />
• In Arkansas, Trade Policies May Influence Voting<br />
• Companies Question Globalization's Benefits<br />
• World's Largest Toy-maker Issues Major Recall<br />
• New Tainted Chinese Products Add <strong>to</strong> Safety Worries<br />
• Hanes Brands Relocates Manufacturing <strong>to</strong> Asia
Learning <strong>Module</strong>s<br />
Multinational Logistics<br />
(right click and select open hyperlink)<br />
Multinational Sourcing
Exercise & Simulations<br />
(right click and select open hyperlink)<br />
A Journey <strong>to</strong> Sharahad - Phil Darg<br />
In this exercise (in PDF) the participants role-play American business persons who journey<br />
<strong>to</strong> Sharahad looking for distribu<strong>to</strong>rs. Even though both Americans and Sharahadans want<br />
<strong>to</strong> do business with each other, there are some substantial barriers present based on their<br />
cultural behaviors and communication barriers. The author, Phil Darg, has generously<br />
agreed <strong>to</strong> globalEDGE making this exercise available for download at no charge (for<br />
educational purposes only).<br />
Focus: <strong>International</strong> <strong>Business</strong> Format: Role-Playing<br />
CESIM Global Challenge - CE-Simulations Oy<br />
An online business simulation game where teams representing mobile<br />
telecommunication companies compete by making international business strategy<br />
decisions in different areas of international business management.<br />
Focus: <strong>International</strong> <strong>Business</strong> Format: Web Based<br />
<strong>International</strong> Operations Simulation (INTOPIA) - In<strong>to</strong>pia, Inc<br />
In<strong>to</strong>pia focuses on IB strategy, and the consequent challenges <strong>to</strong> integrate functional,<br />
regional/cultural, and product areas of the MNC. Key features include negotiation and<br />
networking, in- and outsourcing, the value chain, logistical and currency issues. The<br />
setting is hi-tech products (chips and PC) in both the consumer and industrial markets<br />
of Brazil, EU, and the US. Special features include entrepreneurship and global events<br />
scenarios. The game can be cus<strong>to</strong>mized through flexible parameters.<br />
Focus: <strong>International</strong> <strong>Business</strong> Format: Software