https://www.youtube.com/watch?v=ltOf4-1jq0I Location of manufacturing
Where to locate manufacturing facilities is crucial to MNEs’ success. The factors that play a
key role in manufacturing configuration strategies include location-specific advantage, firm
-specific assets, and internalization (in-house manufacturing as opposed to outsourcing). To
develop manufacturing strategies, MNEs need to consider three basic configurations:
a. Centralized Manufacturing Strategy. Centralized manufacturing in a single country (basically a manufacture and export strategy).
b. Regional Manufacturing Strategy. Regionalized manufacturing in the specific regions served (a regionalized marketing and manufacturing approach).
c. Multidomestic Manufacturing Strategy. Local manufacturing in each country market served (multidomestic marketing and manufacturing approach) using country-specific manufacturing facilities to meet local demand.
Once an MNE has adopted a specific manufacturing configuration, it needs to then
coordinate and control its manufacturing facilities. Coordination represents the linking or
integrating of all manufacturing facilities around the world into a unified system. Control
embraces systems, such as organizational structure and performance measurement, which are
designed to help ensure strategies are implemented, monitored, and revised, when appropriate.
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