Operations Management Chapter 2 Vocab – Flashcards
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Mexican factory located along the U.S.-Mexican border that receives preferential tariff treatment
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maquiladora
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An international organization that promotes world trade by lowering barriers to the free flow of goods across borders
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World Trade Organization (WTO)
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free trade agreement between Canada, Mexico, and the United States
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NAFTA
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European trade group that has 27 member states and has reduced trade barriers among the participating European nations through standardization and a common currency
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European Union
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the purpose or rationale for an organization's existence
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mission
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how an organization expects to achieve its missions and goals
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strategy
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creation of a unique advantage over competitors
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competitive advantage
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distinguishing the offerings of an organization in a way that the customer perceives as adding value
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differentiation
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engaging a customer with a product through imaginative use of the five senses
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experience differentiation
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achieving maximum value, as perceived by the customer
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low-cost leadership
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set of values related to rapid, flexible, and reliable performance
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response
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method that managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage
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resources view
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way to identify those elements in the product/service chain that uniquely add value
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value-chain analysis
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method of analyzing the forces in an organization's competitive environment
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five forces model
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method of determining internal strengths and weaknesses and external opportunities as threats
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SWOT analysis
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activity or factor that is key to achieving competitive advantage
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KSF
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set of skills, talents, and capabilities in which a firm is particularly strong
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core competency
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graphical link of competitive advantage, KSFs, and supporting activities
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activity map
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transferring a firm's activities that have traditionally been internal to external suppliers
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outsourcing
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theory which states that countries benefit form specializing in (and exporting) goods and services in which they have a relative advantage and they benefit from importing goods and services in which they have a relative disadvantage
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theory of comparative advantage
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firm that engages in cross-border transactions
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international business
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firm that has extensive involvement in international business, owning or controlling facilities in more than one country
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MNC
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strategy in which global markets are penetrated using exports and licenses
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international strategy
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strategy in which operating decisions are decentralized in each country to enhance local responsiveness
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multi-domestic strategy
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strategy in which operating decisions are centralized and headquarters coordinates the standardization and learning between facilities
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global strategy
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strategy that combines the benefits of global-scale efficiencies with the benefits of local responsiveness
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transnational strategy
