What are the roles of compatibility, configuration, coordination, and control
in a global manufacturing strategy? Describe each of these four factors.
Chapter 18 Global
Production and Supply Chains
#Daniels #15edition #GlobalProductionandSupplyChains #GlobalProduction #SupplyChain #Chapter18International Business: Environments and Operations, 15e, Global Edition (Daniels et al.)
Daniels, 15edition, Global Production and Supply Chains, Global Production, Supply Chain, Chapter18
Answer: Manufacturing is just one piece in supply chain strategy. It is preceded by sourcing inputs from suppliers and followed by distribution of the final product to consumers. The success of a global manufacturing strategy depends on four key factors: compatibility, configuration, coordination, and control. Compatibility is the degree of consistency between FDI decisions and a company's competitive strategy. Some of the strategies managers must consider include cost-minimization strategies, dependability, quality, flexibility, and innovation. Managers must also determine the configuration of manufacturing facilities. MNEs consider three basic configurations: centralized manufacturing, manufacturing facilities in specific regions, and multidomestic facilities. Coordination is the linking or integrating of activities into a unified system. The activities include everything along the global supply chain from purchasing to warehousing to shipment. Control is the measurement of performance so that companies can respond appropriately to changing conditions. Another aspect of control structure is the organizational structure.
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