东华大学供应链管理课件Chapter 8 International Issues in SCM.ppt

Dr. Xinping SHI Wal-Mart in South America Why is Wal-Mart not as successful in Latin America as they are in the US? What mistakes did Wal-Mart make? If you were running Wal-Mart, what would you have done differently? Wal-Mart in South America Product differences Are there global products? Is this a trend? What is the balance between local tastes, global products? Dealing with established competition, aggressive competitors Developing market knowledge Wal-Mart in South America Lack of critical mass Different infrastructure/ business environment distribution problems different equipment standards cultural differences postdated checks Issues with foreign governments Deep pockets for success Taxonomy of International Supply Chains What are some advantages, disadvantages of: International distribution International suppliers Off-shore manufacturing Fully integrated global supply chain Increasing Globalization 1/5 of output of US firms produced abroad US Companies hold $500 Billion in foreign asset stocks (7% annual growth) 1/4 of US imports between foreign affiliates and US parent companies Over half of US companies increased the number of countries in which they operate (late 80’s to early 90’s) Forces Driving Globalization Global Market Forces Technological Forces Global Cost Forces Political and Economic Forces Global Market Forces Foreign competition in local markets Growth in foreign demand Domestic consumption from 40% to 30% of world consumption since 1970 Foreign sales fuel growth Global presence as a defensive tool Nestle’s and Kellogg’s Presence in state-of-the-art markets Japan -- consumer electronics Germany -- machine tools US: SUV’s Technological Forces Diffusion of knowledge Many high tech components developed overseas Need close relationships with foreign suppliers For example, Canon has 80% of laser engines Technology sharing/collaborations Access to technology/markets Global location of RD facilities Close to production (as cycles get shorter) Close