Unique factor: political, culture, legal system, economic, distribution
4P: Product, Pricing, Promotion, Place
Product: Legal issues, culture perception (use), economic, brand name
Pricing: standard, two tiers, markinting
Promotion mix: advertising, personal sales, promotions, public relations
Place (distribution): length & step, amount of development, v-integration, direct sale
transforming input to output, using technology to create value.
value: cost, feature, durability/reliability, standard/customized, centralized/decentralized
1. Supply chain:v-integration, steps, make or buy, risk-capital, technology, control, flexibility
2. location: country factor(resource, infrastructure) , product factors(value to weight, efficient size, customer feedback, and cycle time)
3. logistics (distance, safety, needs)
intangible, not storable, customer usually participates(capacity plan, location plan, facilities plan, operations scheduling), downstream business, readiness to server.
International Financial Management:
1 choice of currency (hard, soft), 2. credit check-risk remedies, 3. Method of payment (pay in adv. open account, doc collection, letter of credit, cc, countertrade)
Manage working capital: 1 minimize balance, 2. min conversion cost, 3. min exchange risk.
Transaction exposure:1. go naked, 2. forward contracts, 3. option contracts, 4. offsetting assets.
FASB, GAP, SEC.
issues: asset evaluation, taxation, reserves, capitalization of leases &R&D, consolidation.
Transfer pricing:avoid taxes, repatriation limits, tax heavens, foreign sale corp.
Problems: cultures, economic, legal systems.
PCN: parent country national, expatriate, trust, CEO
HSN: host country national
Labor relations: trends, cultural, political, national union, international Union
Industry democracy: collective bargaining, codetermination, workers councils, shop floor participation, employee compensation.