Chapter Two

Purpose of USMCA

phase out all trade and tariff barries among Canada, Mexico, and the U.S.

Mission

purpose or rationale for an organization’s existence; tells an organization where it is going

Competing on differentiation means

offering customers something unique

SWOT analysis

identifies and organization’s strengths and weaknesses and its external opportunities and threats

Compared to a global strategy, a multidomestic strategy has

higher local responsivess and lower cost reduction

Strategies for competitive advantage

differentiation, cost leadership, and response

Outsourcing

transferring activities that have traditionally been internal to external suppliers

Competitve advantage

implies the creation of a system that has a unique advantage over competitors

USMCA definition

free trade agreement between Canada, Mexico, and the US

Not an OM strategy/issue during the maturity phase

high production costs

Not an OM strategy/issue during the gRowth stage

Reduce capacity