Managing the International Value Chain in the Automotive Industry

60457 Words242 Pages
Managing the International Value Chain in the Automotive Industry
Strategy, Structure, and Culture
Stefan Schmid, Philipp Grosche

Table of contents

Foreword Authors Acknowledgments International value chains: Current trends and future needs, as exemplified by the automotive industry 1. Internationalizationofthevaluechainintheautomotiveindustry 2. Configurationandcoordinationascrucialdimensionsinshapinginternational  valuechains 3. Bestpracticesandoptionsformanagingtheinternationalvaluechain Glocal value creation in the Volkswagen Group: Moving toward greater decentralization of production and development 1. TheVolkswagenGroup’snewglobalstrategy 2.
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areshowing alarmingweakness,havingrestedfortoolong onthelaurelsoftheirearliersuccessesandfailingtorecognizechangesthatweretakingplace inthemarket.

solelybysuchfactorsascost-savingproduction,leanprocessdesignorinnovativecapacity.Inordertoprofitfromtheglobalmarket,a companymustbeabletocreateandmanagean internationalvaluenetworkanddelegatevalue functionstothepropersites.Thisappliesto salesandprocurementaswellastolaborand capitalmarkets. Despitepredictionsthatglobalizationwouldlead toahomogeneousworldmarketwithbarelydifferentiatedproducts,ithasbecomeclearthat culturaldifferencesstillplayamajorrolein customers’purchasingdecisionsandinthecommitmentofacompany’semployees.Moreover, therearesubstantialdifferencesintheproductionandquality-relatedprocessesneededinthe emergingmarketsrelativetotheindustrialized countries,andthisaffectseverythingfromproductuse,pricinganddevelopmentpotentialto distributionandcommunicationschannels.

StefanieSohm
Project manager

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Today,thechallengeforacompanycompeting ontheinternationalstageistoadjustquicklyto localcircumstanceswhilesimultaneouslyintegratingitsdivisionsandsitesworldwide,based onidenticalprinciplesandasharedunderstandingofthecompany’spurposeandobjectives. Integratingthevarioussitesintocorporate
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