Professional Documents
Culture Documents
C1-Chiến lược KDQT
C1-Chiến lược KDQT
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1. Primary Activities
Organization architecture - the totality of a firm’s
Involves creating the product, marketing organization - formal organizational structure,
and delivering the product to buyers, and control systems and incentives, organizational
providing support and after-sale service culture, processes, and people
to the buyers of the product Organizational structure -
2. Support Activities The formal division of the organization into subunits
The location of decision-making responsibilities within
Provides the inputs that allow the primary that structure
activities of production and marketing to The establishment of integrating mechanisms to
occur coordinate the activities of subunits including cross
functional teams and or pan-regional committees
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2. Choosing a Strategy
Pressures for cost reductions are greatest: Pressures for local responsiveness arise
In industries producing commodity type products that from:
fill universal needs - needs that exist when the tastes and 1. Differences in consumer tastes and preferences
preferences of consumers in different nations are similar
2. Differences in traditional practices and
if not identical
infrastructure
When major competitors are based in low cost locations
Where there is persistent excess capacity 3. Differences in distribution channels
Where consumers are powerful and face low switching 4. Host government demands
costs Firms facing these pressures need to
To respond to these pressures, firms need to lower differentiate their products and marketing
the costs of value creation strategy in each country
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A global standardization strategy focuses on Firms should locate value creation activities where
increasing profitability and profit growth by reaping economic, political, and cultural conditions are
the cost reductions that come from economies of most conducive to the performance of that activity
scale, learning effects, and location economies Firms that successfully do this can realize location
economies - the economies that arise from performing
• The goal is to pursue a low-cost strategy on a global a value creation activity in the optimal location for that
scale activity, wherever in the world that might be
• Makes sense when there are strong pressures for Locating value creation activities in optimal
cost reductions and demands for local locations:
responsiveness are minimal Can lower the costs of value creation
Can enable a firm to differentiate its product offering
from those of competitors
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Learning effects - cost savings that come from A localization strategy focuses on increasing
profitability by customizing the firm’s goods or services
learning by doing
so that they provide a good match to tastes and
preferences in different national markets
Economies of scale - the reductions in unit cost
achieved by producing a large volume of a • Makes sense when there are substantial differences
product across nations with regard to consumer tastes and
preferences, and where cost pressures are not too
Serving a global market from a single location intense
is consistent with moving down the experience
curve and establishing a low-cost position
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