978-1259317224 Module C Part 2

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International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

o Control

o Planning

o Impediments to standardization of global

operations

o Economic forces

o Cultural forces

o Political forces

• Some design solutions

o Scaled-down design for local

manufacturing system

o Hybrid design

• Intermediate technology

technology

•

Lecture Outline and Notes:

II. Standardization and the Management of Global Operations

Standards – documented agreements or precise criteria used as guidelines, rules, definitions of

a product, service or process.

Benefits of Standardization of Global Operations

a. Ensures that materials, products, processes, and services are appropriate for

intended purpose

b. In most countries, standards are developed across product lines and for various

functions

c. International Organization for Standardization (ISO) – ISO 9000 & ISO 9001

1. Organization and Staffing

a. Simpler and less costly when standardized

b. Replication cuts costs by using less staff and labor hours

current

d. One integrated supply chain increases profits

e. Standardization guarantees interchangeable parts manufactured in different plants

f. Rationalization – Change from subsidiary manufacturing only for national market to

b. Production and maintenance control

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This

4. Planning

a. Design engineers need only copy drawings and lists of materials in their files.

b. Vendors requested to furnish previously supplied equipment.

c. Technical department sends current manufacturing specs without alteration.

d. Experienced labor trainers sent to new location not needing special training on new

equipment.

e. Reasonably accurate forecasts on plant erection time and output are based on

experience with existing facilities.

ii. Labor-intensive processes which employ more people operating semi-manual,

general-purpose machinery

iii. Computer-integrated manufacturing (CIM) is becoming available but its high

cost and high technological content limits its application to industrialized

nations

3. Political Forces

a. Developing countries needing job creation may insist on use of most modern

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International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

1. Scaled-Down Design for Local Manufacturing System

a. Except for plants in large industrialized nations, local manufacturing organizations

are commonly a scaled down version of that found in parent company

b. Local manufacturing operation is rarely integrated, vertically or horizontally, to

extent parent is

c. Horizontal integration is much less prevalent in foreign subsidiaries

2. Hybrid Design

a. When designing plants for developing nations, engineers commonly use a hybrid of

capital–intensive processes (to ensure product quality) and labor-intensive

processes (to exploit abundant unskilled labor)

3. Intermediate Technology

a. The press of growing population and rise in capital costs have forced governments

of developing nations to search for technology midway between capital– and labor-

intensive processes that will create more jobs, require less capital, but still produce

the desired product quality: intermediate technology, or production methods

between capital– and labor-intensive methods.

b. Means ICs cannot transfer technology they are familiar with but must develop new

and different manufacturing methods.

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

CONNECT TOOLS FOR CLASS PREPARATION

SmartBook

What is SmartBook?

SmartBook is a digital version of your course textbook. It contains the same content within the

textbook, but unlike a typical eBook, SmartBook actively tailors that content to your individual

needs as a student. SmartBook can be accessed online through your laptop, tablet or

smartphone and is also accessible when you’re offline!

How Does SmartBook Help You/Students?

• Assignable – assigning students their reading and studying their textbook content

ensures they are coming to class prepared.

• Proven to help students get a better grade. Studies show SmartBook technology can help

increase grades by a full letter.

• Save time. Study smarter. SmartBook makes sure students focus on the things you don’t

know so they can prioritize your study time wisely.

• No more cramming. SmartBook helps learners retain key concepts so you can learn—not

memorize.

• Accessible on the go. Use SmartBook on your laptop, tablet or smartphone–online or

offline–via your browser or mobile app.

• Results in real time. Track student progress–and prevents them from wait for midterms

or finals. Know how well you understand the material now.

How to assign SmartBook to ensure students come to class prepared?

• On the Connect course homepage click “add assignment” > LearnSmart > Select the

chapter

• Decide what content you’d like your students to study, and how much time you’d like

students to spend on their work. Start by narrowing down the content prior adjusting the

slider bar. – Many instructors find it useful to limit the assignment to a maximum of 45

minutes.

• Assign points to the assignment. Instructors have found that if they give the

LearnSmart/SmartBook assignment a minimum of 10% of the course grade that students

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This

document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

assignment. LearnSmart/ SmartBook is an adaptive study tool designed for students. It

can also show you where students are struggling to understand specific concepts.

• The student’s LearnSmart/SmartBook score in the Connect reports is based on their

mastery of the material at the time the assignment is due. Mastery is an evaluation of

the number of learning objectives they completed via performance on answering

questions.

• Students may, and are encouraged, to continue to use LearnSmart/SmartBook

throughout the semester. After the assignment due date, they can continue to access

this tool. Continued use of LearnSmart will not affect their LearnSmart/SmartBook

assignment results in the Connect reports, but has shown to improve test scores by as

much as a full letter grade.

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International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This

document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

ENGAGEMENT & APPLICATION (FACE TO FACE & ONLINE & HYBRID)

BOXED TEXT DISCUSSION QUESTIONS WITH SUGGESTED ANSWERS

IB IN PRACTICE: Zara: Using Innovative Supply Chain Management to Transform the

International Fashion Industry

The focus of this IB in Practice explores “Zara: Using Innovative Supply Chain Management to

Transform the International Fashion Industry.” Zara’s revolutionary approach to supply chain

management in the fashion industry has allowed it to dictate industry standards and to

transform how firms compete in this dynamic sector.

1. How does Zara’s approach yield advantage over companies using more traditional

approaches to logistics and supply chain management? What might make it difficult for

competitors to imitate Zara’s approach?

2. What factors might limit over time the international success of Zara’s approach?

Again, answers may vary on this question. Zara’s advantage has been achieved through an

integrated set of operations activities centered around their Spain-centered supply chain. The

performed so well in.

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International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

GLOBAL DEBATE: The Ethics of Exporting: Do Home Values Apply?

The focus of this Global Debate explores “Is Cognizant Technology Solutions Leveraging Low–

Cost Talent or Exploiting It?” Cognizant is employing low cost technical personnel, particularly

within India, in combination with local service teams to create an innovative “offshore–

onshore” business model that enables the company compete on price, speed, and adaptability.

In conjunction with this business model, the company has invested in an advanced international

communications infrastructure to facilitate effective coordination of its internationally

dispersed teams. This internationalized model in business services is interesting to students and

can provide the basis for insightful class discussion. Asking questions such as, “What benefits

might result from the use of a multi-nation client management team approach?” and “What

challenges might result from such a set-up, and how could they be managed?,” will serve as a

starting point for class discussion on some of the key strategic, operational, organizational, and

external environmental issues that face companies that attempt to develop and implement

innovative international business models.

Online and Hybrid: A classroom discussion option is to assign individuals, groups, or the

class as a whole to examine the evolving issue of using labor from low-cost nations to gain

advantage in serving customers from higher-cost developed countries. The students’ findings

Face-to–Face: Students develop responses to the questions in class in teams/groups, or

else assign perspectives and conduct an in-class debate and discussion.

1. Does the use of a multination client management team approach create value for

companies and workers in both a developing country like India and a developed country such

as the United States? Why or why not?

The answers to this question will vary, and it is intended to help people think through the issues

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

might be either displaced due their company’s use of lower cost labor in developing nations, or

2. Although many U.S. companies have argued that the H-1B temporary visa program is

vital to their continued success because it allows them to import skilled workers that are

difficult to find in the United States, critics charge that such programs are susceptible to abuse,

harming both imported and domestic employees. What are the merits and limitations of each

3. Is it better to allow foreign workers to come to the United States under a program such

as the H-1B temporary visas, or to merely locate activities in a foreign site? Why? How might a

program be designed to enable U.S. companies to bring in immigrant talent from abroad

without harming the interests of employees in the United States?

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

GET THAT JOB! FROM BACKPACK TO BRIEFCASE Jamie Cignetti at the Guateca School

in San Pablo, Guatemala: A Life-Changing Experience

The focus of this Get that Job! From Backpack to Briefcase box explores a student’s efforts to

become involved in international sustainable economic development issues through

participation in the establishment of an appropriate technology school in a rural community in

Guatemala. The discussion examines some of the background of the program as well as the

nature of the student’s involvement. Some of the challenges of establishing an effective program

are discussed, as well as challenges and rewards associated with living and working abroad in a

less-developed context.

Online and Hybrid: Virtual teams evaluate Cignetti’s advice for their own career

development and their ability to understand and adapt to life in another culture, particularly one

that is quite different from one’s home culture. Share conclusions with class, either online or in

face-to–face setting.

Face-to–Face: Students evaluate their own career strategy in light of Cignetti’s advice.

1. What do you think of the nature of the international work that Cignetti was involved

in? Would this sort of activity be interesting and fulfilling to you? Why or why not?

Students will have various answers to this question, depending on their training, interests, and

2. What do you think about Cignetti’s comments about the challenge of creating effective

relationships between her institution and the Guatemalans? What were the challenges and

why did they arise? How might they be managed most effectively?

Students will have various answers to this question. She emphasizes the importance of

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module C

detract from building strong cross-cultural understanding can be a useful starting point for an

1. What recent developments have caused supply chain management to become

increasingly important to international companies? Do you expect supply chain management

to become less, or more, important as 3D printing technology becomes more commercially

viable? Explain your rationale. 

2. Is the reduction of inventory an appropriate goal of supply chain management

systems? What benefits might result from reducing inventory? What problems might result

from inventory reduction efforts? 

3. What are the main differences between sequential and concurrent approaches to the

design of products and services? What problems might a company encounter if it decided to

use concurrent design?

The main difference between sequential and concurrent approaches to design is who within