Export Planning How to write an international marketing

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Learning objectives (learning tasks) Ch. 5 At the end of the chapter

Export Planning Supply chain set up in existing markets Example Source: R. Hüfler a.

Export Planning Operational elements to create a competitive advantage Quality Flexibility/ Responsiveness Costs Reliability

Export Planning Generic supply chain strategies Low Demand Uncertainty High Demand Uncertainty Low Supply

Export Planning Value chain model of Porter Primary activities Secondary activities Value Chain of

Export Planning Value chain model of Porter Value Chain Main tool for identifying ways

Export Planning Value chain model of Porter Value Chain The firm‘s success depends not

Export Planning Example: Supply chain set up for Pepsi. Co Value Chain Support activities:

Export Planning Value chain model of Porter Value Chain - Identifying capabilities and competitive

Export Planning Example: Supply chain set up for Nestlé Export Planning Institute _II_BPM Joris

Export Planning Chapter review questions (10 min. ) 1. Which three flows are parts

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Export Planning How to write an international marketing plan Chapter 5: Value chain and supply chain setup Internationalisation of the firm Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Learning objectives (learning tasks) Ch. 5 At the end of the chapter you are able to: 1. Describe a supply chain process and you understand why you can use the supply chain as a competitive weapon; 2. Apply the value chain model of Porter; 3. Name and explain the different business process models; 4. Identify key processes relevant for internationalisation within a company; 5. Analyse the existing supply chain set up of a company. Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Supply chain set up in existing markets Example Source: R. Hüfler a. o. , students HAN University Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Operational elements to create a competitive advantage Quality Flexibility/ Responsiveness Costs Reliability Ontime/ Speed Source: Leeman, 2009 Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Generic supply chain strategies Low Demand Uncertainty High Demand Uncertainty Low Supply Uncertainty Efficiency / Lean Reliability and cost orientation to fulfill Make -to-Inventory Responsive and speed to fulfill Make-to-Order High Supply Uncertainty Risk Hedging Reliable, flexible and on-time to fulfill Make-to-Inventory Agile Responsive and flexible to customer needs and Make-to-Order Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Value chain model of Porter Primary activities Secondary activities Value Chain of Porter Export Planning Infrastructure Human Resource Mgt Technology Development Procurement / Sourcing Inbound Outbound Operations Logistics Marketing And Sales Institute _II_BPM Margin Service Joris Leeman© , 2010

Export Planning Value chain model of Porter Value Chain Main tool for identifying ways to create more customer value; Every firm consists of a collection of activities performed to design, produce, market, deliver and support the firm‘s products; The value chain breaks the firm into nine value-creating activities to understand the behaviour of costs in the specific business and the potential sources of competitive differentiation; The nine value-creating activities include 5 primary and 4 support activities. Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Value chain model of Porter Value Chain The firm‘s success depends not only on how well each department performs its work, but also on how well the activities of various departments are coordinated. Focus on Core Business Processes - Product development process - Inventory management process - Order-to-payment process - Customer service process Successful companies develop superior capabilities in managing these and other core processes. In turn, mastering core business processes gives these companies a substantial competitive edge. Source: Kotler Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Example: Supply chain set up for Pepsi. Co Value Chain Support activities: Procurement and therewith cost is directly connected to (end) profit. Primary activities: Product availability and product acceptance are critical success factors. Supply Chain set up Pepsi. Co Suppliers Pepsi. Co concentrate plant Bottler Bottling plants Distributor Customers and Consumers Retail stores/warehouses Plant Warehouses/ Distribution Center Ingredients Transport Consumers Packaging Big shops Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Value chain model of Porter Value Chain - Identifying capabilities and competitive differentiators; - Output value > Cost value = Margin Drivers of Value Creation 1. Cost percentage 2. Relative cost compared to the competition 3. Factors influencing the cost 4. Sources of value differentiation 5. Value differentiation compared to the competition Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Chapter review questions (10 min. ) 1. Which three flows are parts of supply chain management? 2. What are the five operational elements to create a competitive environment? 3. Name four generic supply chain strategies to manage supply and demand. 4. Explain the value chain model of Porter. What is the use of this model? 5. Why is the choice of the right business process model so important? 6. Explain the meaning of a push-principle and pull-principle is. Give examples. 7. Make a drawing of a supply chain set up for a company of your choice. Export Planning Institute _II_BPM Joris Leeman© , 2010