Glossary

backward integration
refers to acquiring capabilities toward suppliers

forward integration
refers to acquiring capabilities toward distribution or even customers

multinational enterprise
an organization that sources, markets, and produces its goods and services in several countries to minimize costs, and to maximize profit, customer
satisfaction, and social welfare

offshoring
the building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control

operational structure
the configuration of resources, such as suppliers, factories, warehouses, distributers, technical support centers, engineering design and sales offices, and
communication links

outsourcing
the process of having suppliers provide goods and services that were previously provided internally

supply chain
the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial
transactions through the supply, production, and distribution processes

value
the perception of the benefits associated with a good, service, or bundle of goods and services (i.e., the customer benefit package) in relation to what buyers
are willing to pay for them

value chain
a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers,
through the facilities and processes that create goods and services, and that those deliver them to the customer

value chain integration

the process of managing information, physical goods, and services to ensure their availability at the right place, at the right time, at the right cost, at the
right quantity, and with the highest attention to quality

value proposition
a competitively dominant customer experience

vertical integration
refers to the process of acquiring and consolidating elements of a value chain to achieve more control