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Six Sigma

An inclusive management framework which is defined by companies in two ways:

  • A set of tools for the improvement of processes and products.
  • An approach for the improvement of processes and business performance.
Six Step Model

Moberg and Palm developed the "Six Step Model" which was basically a means of treating internationalisation as a six step process, which consisted of six critical factors; finding out motives for going international, defining the state of ones company (through e.g. a SWOT analysis), deciding on the product or service which will be internationalized, selecting the right market to penetrate, deciding on the mode of entry and lastly finding the right moment to enter.

Standardisation

The strategy whereby a company undergoing internationalisation, uses the same marketing programme for all the markets they wish to expand to.

Strategic Business Unit

As the number and diversity of products increases the organisational structure is likely to be centred upon division called Strategic Business Units (SBU). SBUs are responsible for developing, manufacturing and marketing their own product or group of products.

Strategic Goals

Strategic goals are statements of what the company management wishes to achieve over the period of the strategy.

Structure of Costs

Structure of Costs includes the expenses that a company must take into account when manufacturing a product or providing a service. Types of cost structures include transaction costs, sunk costs, marginal costs and fixed costs. The cost structure of the firm is the ratio of fixed costs to variable costs.

Systematic Approach

Methodical approach repeatable and learnable through a step by step procedure.

 

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