Markrting Managemeny

• A situation where a reduction in production will result in less overhead allocated to the respective product

2 Reduced waste: With improved systems there would be reduction in waste and fewer defects in the products. This will help in adding to the profits. Logistical improvements will help in better organisation of physical space required and viable transportation and reduction in the waiting times for the materials required, thus giving lesser room for wasting time.

* Examine the manner in which the firm’s decision to outsource offshore is impacted by foreign exchange. Determine whether or not it matters where the company outsources offshore. Provide a rationale for your response.

It adds value to the business i.e. it enhances the business operations which would inturn have a positive impact on the business

The amount of work in progress is minimized. Fewer tools are needed. The parts do not have to travel between the work stations. The control systems becomes redundant, everything takes place in the garage.

2. How would leveraging capabilities with respect to the Indonesian market differ between an Australian/New Zealand producer of computer software and an Australian/New Zealand manufacturer of automotive parts?

IKEA’s products like the PAX wardrobe, the BILLY bookshelf, the LACK table and the SULTAN bed, sold in IKEA store are to a large scale sourced from a global network of suppliers. To take the sliding doors of PAX wardrobe as an example, IKEA just sourced different parts of the door form different countries but within consideration of total cost. Table 1 shows an overview of 8 major component of the

Internal efficiency through the decrease of marketing costs, reduction of order taking and fulfillment costs and improving the retention rates of our customers.

Besides, the facilities maintenance for TIS would be less expensive because it could more effectively manage floor space, heating and air conditioning, and power consumption, and its facility was located in a less expensive city. Lastly, TIS had less disaster recovery and corporate overhead costs because it had more efficient management and economies of scale.

Proximity to raw materials gives benefits on distribution channel which is already organized by formers. This also gives an added advantage in reducing transportation costs

By reducing the introduction of new products, cost such as product development, R&D and advertising can be avoided.

1. IF you were CEO of Harley Davidson, How would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?

The manufacturing cost can be lower as the rearrangement of the production line to meet urgent order can be minimize or even eliminated.

One building, circular in shape, had four floors connected ingeniously so that customers could move easily from floor to floor. This building acted as the main display area for furniture. The second building consisted of three floors and a basement and acted as the stockroom and service unit, where there was also a selling area for smaller pieces of furniture and home furnishings. Customer services ranged from a baby carriage hire service, a children 's nursery, and a restaurant with seating for 350, to cloakrooms, toilets, a bank, and parking for 1,000 cars.

To efficiently reduce operating costs, they can set up factories in areas in which labor and rent costs are lower.