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International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module C
11 Instructor’s Manual – Module C| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
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
12 Instructor’s Manual – Module C| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
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
15 Instructor’s Manual – Module C| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
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
16 Instructor’s Manual – Module C| Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
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
