INTERNATIONALE OMGEVING:
SESSIE 1: INTRODUCTIE → GEEN LEERSTOF.
EXAM: multiple choice questions. → 90% of the multiple-choice questions will be different in character from
the ones from blackboard. The quizzes on blackboard are short and just a little check-up. The questions on the
exam are going to be more tricky, you need to really understand it.
SESSIE 2: STABILITEIT EN VERANDERING IN DE INTERNATIONALE ECONOMISCHE
OMGEVING:
3 VRAGEN:
MNE = multinational Enterprise
Which Belgian city is home to Belgian largest MNE?
= ABibnev in Leuven.
How many Gigafactory’s does Tesla operate outside of the US?
= 2 in Berlin and Shanghai.
→ this explains what multinationals do, they invest in other countries (firms) outside their home country, and
they invest there in productive assets.
What is the “League of Nations”?
= doesn’t exist anymore but it was an international governmental organization like the UN. It had a great
presence between the first and the second war.
LEARNING OBJECTIVES:
Firm: a resource transformation system, embedded in its environment, and understand the importance of
stability for corporate decisions and performance.
, - We see a production line where every person has their specific task so in the end, we get the final
product.
- We also see that one person can ruin the whole product line.
- Input and output → workers, automation, production, supervisors, management, etc.
It’s a visualization of the company where things are being transformed from parts into final products and that
there is an organization around that enables that.
The value chain = it’s a tool to decompose the firm into a set of discrete activities. It shows us how a firm
works.
So, I can look at an activity and say okey this helps me with differentiating like technology development.
On the left side we have the inputs like the raw materials and components that we use and on the other side
we have the output like the product of service that we use.
,We have a vertical and a horizontal structure.
- Vertical: primary activities.
= these are activities that do something with the inputs like the manufacturing line. So when we think
of the flow of inputs that are transformed in an organization, it goes through:
• inbound logistics which is organizing when the trucks come in and unloading etc.
• operations like manufacturing.
• Outbound logistics: sending them distribution centers and customers.
• Marketing and sales: make sure that people know what we are doing.
• Service: maintenance.
→ value adding process in the firm.
- Horizontal: supporting activities.
= These supporting activities enable or allow primary activities to be performed. We don’t need them
for the transformation from inputs to outputs, but we need them because people can work on the
assembly line like a structure, facility, etc. example) a parking lot, administration, develop technology,
recruit people, legal department etc.
Margin: these activities should cost less than what we get in from our customers. (income)
We have players that give us all the inputs we need, and we have customers, distributors, or logistics firms etc.
that help us to sending the product around.
→ it’s a set of relations where firms are embedded in and it is necessary to have that transformation function
working because if some of the suppliers from our inputs have some problems meaning that they can’t
produce, distribute, etc. then we need to hold our own production and then we can’t create an income.
, We can even broader our spectrum from the firm to its immediate web of relations. (Customers, distributors,
unions, competitors, suppliers, government = stakeholders)
All the activities that happen in the firm is also embedded in a macro environment.
• Demographic forces: aging society and that has an impact on jobs, salaries, social securities, etc.
• Cultural forces: different cultures (we go deeper in the next chapters)
• Political forces: policy shift.
• Technological forces: AI.
• Economic forces: upswings, downswings, etc.
• Environmental forces: warming planet.
SO, A FIRM IS EMBEDDED IN A SET OF RELATIONS.
Stability is good for companies because it’s a reliable basis for companies to make investments, for creating
employment, value, innovating, etc. but not too much because otherwise there is no possibility to change and
increase market share.
We have a lot of sources of uncertainty and change triggers that affect our organization.
