Operations Management Chapter 2 Vocab

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