25.02.2013 Views

BA101 Introduction to Business International Business Module

BA101 Introduction to Business International Business Module

BA101 Introduction to Business International Business Module

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<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

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!