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CONTROL SYSTEMS OF

INTERNATIONALBUSINESS

  BY  

SREEJITH VM

 

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International business consists of all commercial

transactions—including sales, investments, and

transportation—that take place between two or more

countries

INTRODUCTION

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Global business organizing system

Information system

Global business control system

Integration of international business

CONTROL SYSTEMS OF IB

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Logistic management

Logistics is the process of pla i g, impleme ti g a d

co trolli g the efficie t, cost-effective flow a d storage

of raw materials, i - process i ve tory, fi ished goods

a d related i formatio from poi t of origi to poi t of

co sumptio for the purpose of co formi g to customer

requireme ts

he mission of logistics is to get the right goods or

services to the right place, at he right time, and in the

desired condition and quantity in relation to customers

order 

1. GLOBAL BUSINESS

ORGANIZING SYSTEM

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cooperate with marketing to set customer servicelevels, facility location decisions,

transportation activities !eg" transportation modeselection, vehicle scheduling, carrier routing#

inventory management !inventory short -termforecasting, planning and control, cooperate withproduction to calculate $%&, sequence and timeproduction #

Information collection and flows and orderprocessing,

warehousing and materials handling, packaging and packing

MAIN LOGISTICS ACTIVITIES AND

DECISIONS:

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'rinciple () *egment +ustomers ased on *ervice eeds

segments customers based on logistics and supply chain needs

'rinciple .) +ustomize the Logistics etwork

stresses the need to develop supply chain approaches that are

responsive to the needs of individual customer segments

'rinciple /) Listen to *ignals of 0emand and 'lan 1ccordingly

see that demand planning is responsive to and aligned with market

signals such as point-of-sale information

7 PRINCIPLES OF SUPPLY

CHIAN MANAGEMENT

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'rinciple 2) 0ifferentiate 'roducts +loser to the +ustomer 

postponing product differentiation and gaining greater understanding and

control of cycle times, supply chain efficiency and effectiveness will be

positively impacted

'rinciple 3) *ource *trategically

e4cellent supply chain management requires customers and suppliers to

work together to meet overall supply chain ob5ectives 

'rinciple 6) 0evelop a *upply +hainwide echnology *trategy

replace infle4ible, poorly integrated transactional systems with enterprise-

wide systems

'rinciple 7) 1dopt +hannel-*panning 'erformance 8easures

the realization of supply chain ob5ectives will be essential to the long-termsuccess of the individual participants

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he international channel system consist of . sub

systems , namely

0omestic system

9oreign system

here are two types of e4porting, namely

  0irect e4porting

Indirect e4porting

2. INTERNATIONAL

CHANNEL SYSTEM

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It refers to the sale in the foreign market directly by the

manufacturer" 9irms with considerable e4port business

usually resort to direct e4porting

ypes of foreign intermediaries

Importers

0istributors

:holesalers

;etailers

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he indirect method is more popular with firms which are 5ust

beginning their e4porting activities and with those whose e4port

business is not considerable" . alternative channel for indirect

e4porting

International middleman

  $4port merchants

  rading companies

  1gents or brokers

+o operative organizations

  the co operative e4porting organizations which represents a

cross between a direct and indirect e4port carries on e4porting

activities on behalf of several producers and is partially under the

administrative control of the manufacturer 

INDIRECT EXPORTING

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• 'roduct characteristics

• 8arket and customer characteristics

• 8iddleman characteristics

• +ompany characteristics and ob5ectives

• +ompetitors characteristics

• $nvironmental characteristics

FACTORS INFLUENCING

CHANNEL SELECTION

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Integrating logistics with marketing into the strategic planningprocess can be a means to improve customer service and increasesales"

wo strategic orientations)

'rocess orientation) creating a system of only value-addinglogistics activitiesInformation = channel orientation) focus on coordination andcontrol within supply chain by synchronizing logistics activitieswith related information

Important questions to ask) who are our customers how do wesegment them> what do our customers need> what are our

customer service goals for the upcoming year> what are ourcurrent capabilities

Logistics vision includes what the organization hopes toaccomplish in the future

$ach option to achieve the vision should be weighed and comparedusing a cost=benefit analysis

Logistics value proposition is a unique commitment of a firm to anindividual or selected customer groups"

DEVELOPING LOGISTICS

STRATEGY 

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Large firms have been running internal global information

system

he business use of internet can be in the form of internet

support service, sales of goods and service and marketing"1ccess to the internet may promote an international

strategy as it provides an easy access to an e4port market"

he use of electronic data interchange increase the speed

with which businesses can respond to their customers" he

use of email promotes the personal service provided by the

business

  eg logistic company use internet to support customer in

tracking consignments across the globe from thei"r origin

to final destination

  3. INFORMATION

SYSTEM

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Global business control system are the metrics that are

used to measure the perfomance of sub units and make

 5udgements on how well international firms are running

them"In today?s globalized world, the market legislation and

business control take different forms and varieties in all

countries" $very country has to determine the level of

market liberty adequate to promote sustainable growth

4. GLOBAL BUSINESS

CONTROL SYSTEM

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he term economic integration is a procedure in which

countries work together with one other in order to trim down

or get rid of obstruction to the world wide flow of goods,

labor, resources

he most important advantage associated with economic

integration is trade creation, i"e", the member countries have

broader choice of product, service and provisions not

available earlier obtainable at a comparatively lesser price

subsequent to trade barriers as reduced tariffs or elimination

of tariff to motivate more trade1n economic integration motivates trade emancipation and

result in market place growth , e4tra savings to the country

and larger dissemination of know-how generates additional

 5ob prospects

INTEGRATION OF

INTERNATIONAL BUSINESS