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Managing the International Value Chain in the Automotive Industry

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

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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. …show more content…

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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