1. THE ENVIRONMENTAL ANALYSIS FRAMEWORK APPROACH TO INTERNATIONAL LOCATION

2. GLOBAL SOURCING & MANUFACTURING LOGISTICS: Superimposing Complexities
SUPPLY SOURCES
PRODUCTION
UNITS
DISTRIBUTION
CONSUMERS

3. GLOBAL SOURCING & MANUFACTURING LOGISTICS: Superimposing Complexities
SUPPLY SOURCES
CUSTOMS C C C
PRODUCTION
UNITS C C C
DISTRIBUTION C C
CONSUMERS

4. GLOBAL SOURCING & MANUFACTURING LOGISTICS: Superimposing Complexities
SUPPLY SOURCES C
CUSTOMS C
$/£
$/£
FOREIGN EXCHANGE C
PRODUCTION
UNITS
$/£ C
$/£ C C
DISTRIBUTION C C
$/£
CONSUMERS

5. GLOBAL SOURCING & MANUFACTURING LOGISTICS: Superimposing Complexities
Customs
SUPPLY SOURCES
Foreign Exchange C
$/£
$/£
Local, Intra-firm
JVs, Third Parties, etc. C
PRODUCTION
UNITS
$/£ C
Joint Ventures
$/£ C
Subcontractors C
Alliances
DISTRIBUTION C C
$/£
Third Party
CONSUMERS

6. THE “META-FRAMEWORK” (The Potpourri of all Frameworks)
UNDERSTAND THE FOUR DRIVERS OF THE INTERHATIONALIZATION OF YOUR MANUFACTURING PROCESS
TO EVALUATE POTENTIAL OPERATIONAL STRATEGIES USE A FOUR LEVELS ANALYSIS PROCEDURE
TO ASSESS A SPECIFIC PROPOSAL FOR LOCATING ABROAD USE A MATRIX OF IMPORTANT VARIABLES TO UNDERSTAND AND STRUCTURE THE TRADEOFFS

7. INTERNATIONALIZATION POTENTIAL OF THE MANUFACTURING PROCESS
MARKET DRIVERS
MANUFACTURING
PROCESS
INTERNATIONALIZATION
POTENTIAL
TECHNOLOGY
DRIVERS
COST
DRIVERS
POLITICAL & ECONOMIC DRIVERS

8. MARKET DRIVERS
AGGRESSIVE ENTRANCE OF FOREIGN COMPETITORS IN DOMESTIC MARKET
SIGNIFICANT GROWTH IN FOREIGN DEMAND
CHANGING COMPETITIVE PRIORITIES
FROM COST TO:
Time Delivery
Quality
Product Flexibility
CHANGES IN THE NATURE OF PLC
MARKET SOPHISTICATION (“STATE OF THE ART” MARKETS)

9. TECHNOLOGY DRIVERS TECHNOLOGICAL SOURCES OF CRITICAL COMPONENTS
SOURCES OF PROCESS TECHNOLOGY
OPPORTUNITIES FOR TRANSFER OF TECHNOLOGY/TECHNOLOGY SHARING
SOURCES OF HIGH QUALITY TECHNICAL LABOR

10. COST DRIVERS DIRECT LABOR OVERHEAD
CAPITAL INTENSITY OF PRODUCTION FACILITIES
TOTAL QUALITY COSTS
GOVERNMENT INCENTIVES
INTEREST RATE SUBSIDIES
TAX HOLIDAYS
COST SHARING ON EQUIPMENT

11. POLITICAL & ECONOMIC DRIVERS
EXCHANGE RATE FLUCTUATIONS
BILATERAL AND MULTILATERAL TRADE AGREEMENTS
EXPECTED POLITICAL EVENTS
MAIN MACROECONOMIC VARIABLES

12. ASSESSMENT OF OPERATIONAL STRATEGIES
INTERNATIONAL LEVEL
Bilateral Agreements, Multilateral Agreements and Industries
COUNTRY LEVEL
Macroeconomic Conditions, Government Strategies and Policies
INDUSTRY LEVEL
Local and Global
COMPANY LEVEL

13. AVAILABLE TOOLS OF ANALYSIS
COUNTRY LEVEL
Economic Framework for Comparative Advantage of Important Production Factors
From Competitive Priorities, Derive Important Dimensions for Country Comparisions
INDUSTRY LEVEL
Five Forces Model & “Mega-Force” for Feasibility Analysis
International Strategy Frameworks
COMPANY LEVEL
Value Added Chain
Manufacturing Strategy Framework
Corporate Objectives • Marketing Strategy
Order Winners & Qualifiers • Process Choice
Infrastructural Decisions

14. Quality (labor related) Product Flexibility Delivery DIMENSIONS
PRIORITIES
Price
Quality (labor related)
Product Flexibility
Delivery
DIMENSIONS
Labor Cost
Labor Skill
High
JAPAN
KOREA
TAIWAN
Labor
Skill
THAILAND
CHINA
Low
Labor Cost
Low
High

15. MATRIX OF IMPORTANT VARIABLES TO ASSESS SPECIFIC PROPOSALS
VARIABLES: Country Environment
Competitive Environment
Company Characteristics
MARK THE FAVORABLE CONDITIONS FOR YOUR PROPOSAL
PROPOSAL MIGHT INVOLVE DECISIONS ON
DEVELOPMENT OF MANUFACTURING FACILITIES
TECHNOLOGY CHOICE
CHOICE OF ALTERNATIVE ENTRY MODES
Exporting, Licensing, Subcontracting, Joint Ventures

16. NOTE: MF = Manufacturing Facilities AUTO = Automation
EX = Export LI = Labor Intensive

17. COMPETITIVE SITUATION
Low <<<>>>High
Industry Concentration -- MF
Relative Competitive Strength EX MF
Local Barriers to Entry MF EX or MF/JV
Local Competitors’ Strength MF EX
Global Competitors’ Strength MF EX
Supplier Availability EX MF
Local Substitutes MF EX
Global Substitutes MF EX
Strength of Customers FM EX
Government Strategies Volatility MF EX
Government’s Strength as:
Buyer FM
Supplier FM EX
Entrant MF EX

18. COMPANY CHARACTERISTICS
Low <<<<<>>>>>High