Mgt 485 Chapter 3

1. Mgt 485Chapter 3 GLOBAL COMPETITIVENESS

2. Useful Links • http://globalgateway.t-bird.edu/GlobalGateway/ • http://www.camcnty.gov.uk/sub/cominfo/ethnic/ • http://international.loc.gov/intldl/intldlhome.html • http://www.fita.org • http://www.submitshop.com/services/regional-search-engines.html • http://www.usitc.gov/tata/hts/bychapter/index.htm • http://www.geert-hofstede.com/hofstede_netherlands.shtml

3. Summary of Global Competitiveness • Finland as the most competitive economy, holding first position in the Growth Competitiveness Index rankings due to a good all-round performance. • Six European economies are ranked among the top ten with notable good performance from the Scandinavian countries. • The United Kingdom and Canada have dropped to 15th and 16th position respectively • mainly due to a perceived decline in the quality of their public institutions (particularly significant in Canada). • Taiwan and Singapore, ranked 5th and 6th respectively, are Asia’s best performing countries. • Taiwan’s position is largely due to its excellent performance in technology • Singapore’s to its sound macroeconomic environment and quality of public institutions. • Chile (28th) is the highest ranking economy in Latin America, way ahead of Mexico (47th), the second highest ranked economy in the region. • Gradually, through a combination of good macroeconomic management and a broad range of institutional reforms, Chile is joining the ranks of the most competitive economies in the world, effectively migrating, in a figurative sense, away from the economically troubled region Adopted from: http://www.psoj.org/pressrelease20031112.html

4. TQM Organizations • Recognize the Technology Paradox • Create A Climate for Innovation • Create High Quality Goals & Services

5. Technology Paradox The quality/cost dilemma Wrong: As quality increases, the cost of production also increases Right: Quality and costs are inversely related

6. Creating a Climate for Innovation • Create corporate databases to link experts in diverse technologies • Take advantage of Experts from outside the company • Encourage Scientists to present innovations to peers • Create visions by looking to the future • Benchmark competitors • Create a wide array of products that cannot quickly be copied by the competition

7. Quality-Cost (Traditional View)

8. Quality-Cost (Evidence)

9. “Quality Pays Off” • Auto manufacturing • U.S. automakers have continued to increase their quality • Asian services • Asian airliners and hotels are top ranking internationally • Aircraft manufacturing • Major manufacturers are delivering high quality and cost effective products worldwide

10. Learning Organizations • “Learn how to learn” • anticipate change and discover new ways of creating products and services • Openness • encourage and anticipate, rather than accept change • Creativity • promote risk taking • encourage personal flexibility • Self-Efficacy • Enhance confidence that employees have the personal resources needed to accomplish specific tasks within the organization

11. Examples of learning organizations • Anticipate change • General Electric • Sony • Kodak • Openness • Whirlpool • Creativity • Sony • Chrysler • Efficacy • IBM

12. Customer Based Continuous Improvement Flexible or Virtual Organizations Creative Human Resource Management Egalitarian Climate Technological Support World Class Organizations

13. World Class Organizations • Citigroup • General Electric • Exxon-Mobil • Altria (Formerly Kraft / Phillip Morris) • Royal Dutch – Shell Group • Bank of America • Pfizer • Wal-Mart • Microsoft • Toyota Fortune 500 Magazine v148, n2, p 122 “Global 500” (annual) The 192 U.S. companies on the list lost $461 billion in revenues

14. World Class Organizations • Citigroup • General Electric • Exxon-Mobil • Altria (Formerly Kraft / Phillip Morris) • Royal Dutch – Shell Group • Bank of America • Pfizer • Wal-Mart • Microsoft • Toyota Fortune 500 Magazine v148, n2, p 122 “Global 500” (annual) AOL Time Warner (#80), showed a 2001 - 2002 loss of $98.7 billion

15. New Paradigm Organizations Organizational Development 1985 1990 1995 2000+ Time World Class (continuous improvement to become and sustain being the best) Learning (keeping ahead of change) Total Quality (adaptive)

16. e-Go • Central Issues to “going international” • Customer Focus? • Market • Economics • Quality • Technology?

17. Exercise #4 • http://www.census.gov/foreign-trade/reference/codes/index.html • http://www.census.gov/foreign-trade/regulations/forms/index.html • http://www.unzco.com/basicguide/ • http://www.officialexportguide.com/ • http://www.oted.wa.gov/trade/importexport/default.htm

18. Export Import Codes • Schedule B codes (for exports) • Harmonized Tariff Schedule (HTS) codes (for imports) The HTS assigns 6-digit codes for general categories. Countries which use the HTS are allowed to define commodities at a more detailed level than 6-digits, but all definitions must be within that 6-digit framework. The U.S. defines products using 10-digit HTS codes. Exports codes (which the U.S. calls Schedule B) are administered by the U.S. Census Bureau. Import codes are administered by the U.S. International Trade Commission (USITC).