The goal of this class will be to develop a better understanding of the link between theory and practice with particular focus on global sourcing strategy. Global sourcing strategy generally refers to management of (1) logistics identifying which production units will serve which particular markets and how components will be supplied for production and (2) the interfaces among R&D, manufacturing, and marketing on a global basis. The primary objective of global sourcing strategy is for the firm to exploit both its own and its suppliers’ competitive advantages and the comparative locational advantages of various countries in global competition. From a contractual point of view, the global sourcing of intermediate products such as components and services by firms takes place in two ways: 1) from the parents or their foreign subsidiaries on an “intra-firm” basis (i.e., insourcing) and 2) from independent suppliers on a “contractual” basis (i.e., outsourcing). Similarly, from a locational point of view, multinational firms can procure goods and services either (1) domestically (i.e., onshoring) or (2) from abroad (i.e., offshoring).Class sessions will emphasize open discussions of this complex field of inquiry, and the course will use a mixture of theory and different case studies to illustrate corporate strategy issues and engage students in the discussion of applications oriented solutions. |
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