1. 6.03 Exemplify why there is a global war for talent, and why companies outsource parts of the value chain

2. The global talent war: ◦ Businesses seek out employees who understand international marketing because:  Business operations are now global, not just domestic  Managers must be able to manage locally, but develop strategies globally  Large opportunities for growth in developing countries  Example: China, India, Central & South America  Birth rate lagging population replacement rate in many developing countries  Declining workforce motivates companies to find new employees

3. The global talent war: How companies can locate talented employees ◦ Draw talent from around the world ◦ Immigrant: someone who leaves his home country to live in another ◦ Expatriate: someone from one country who works in another country

4. The global talent war: Issues with gender discrimination  Many countries practice gender discrimination: not allowing women to have jobs in positions of leadership or management

5. The global talent war: Issues with gender discrimination  Gender empowerment: evaluation conducted by United Nations to measure ◦ women’s involvement in legislatures, ◦ higher positions in private & government employment, ◦ academic & technical work, ◦ estimated income

6. The global talent war: Issues with gender discrimination Glass ceiling: Barrier that prevents individuals from being promoted into top management positions ◦ Less than 1% of top CEO’s in U.S. are women ◦ Some women choose personal lifestyle over professional goals ◦ Women often excluded from informal men’s networks ◦ Women are stereotyped in many cultures ◦ Very few women role-models as CEO’s ◦ http://www.youtube.com/watch?v=SiQnDtjrBcE http://www.youtube.com/watch?v=SiQnDtjrBcE

7. Value chain outsourcing ◦ Value is created in a business through the combination of unique functions operating together ◦ Value Chain: divides a business into functional areas, for example:  Procurement  Production  Distribution  Promotion  Customer support  Goal for a company is to perform one or more functions better than competitors, and at least match competition in all other functions

8. Outsourcing ◦ Outsourcing: finding another company with expertise to perform a business function, for example:  Advertising  Shipping  Why use outsourcing?  When another company can perform the function more efficiently  Reduce costs  Allow companies to concentrate on what they do best  Identify low-cost manufacturing in low-wage countries  Outsourcing  http://www.youtube.com/watch?v=eRGQ_CJ17zg http://www.youtube.com/watch?v=eRGQ_CJ17zg  http://www.youtube.com/watch?v=aw4TMTYKxno http://www.youtube.com/watch?v=aw4TMTYKxno

9. Offshoring  Offshoring: outsourcing of jobs to other countries ◦ Advantages of offshoring:  Economic growth from cost savings & lower consumer prices  Raises income levels in developing countries  Helps train workers and mangers in lesser developed countries ◦ Disadvantages of offshoring:  Domestic jobs are lost, increasing unemployment

10. United States workforce preparation ◦ Growing concerns about U.S. workforce ◦ U.S. lags many countries in math skills and foreign language skills ◦ Need to focus on research and development ◦ Entrepreneurship and innovation need to be encouraged ◦ http://www.youtube.com/watch?v=8jc5fDsgVw0 http://www.youtube.com/watch?v=8jc5fDsgVw0 ◦ Edwards Deming ◦ http://www.youtube.com/watch?v=gpBUZZnoZTI http://www.youtube.com/watch?v=gpBUZZnoZTI