TY - JOUR
AU - Cerny, Keith
AB - Building Competitive Advantage through a Global Network of Capabilities Andrew Bartmess Keith Cerny h e transition to global competition in many U.S. manufac­ turing industries has added significant complexity to facility Tlocation decisions. Unfortunately, few companies have responded well to this challenge. Many plant location decisions made during the past decade could be characterized as tactical, stop-gap actions which resulted in short-lived benefits and in company facility networks that are unbalanced, inefficient, or ineffective. The finan­ cial performance of the resulting plants has frequently been disappointing. 'TYpical management comments include: "Our savings were significant initially, but wage rates at our overseas plants have risen consistently. and at the current exchange rates our savings are almost insignificant." "We save a lot on labor over there, but we have also added a lot of new people here to support the foreign plants and additional finished goods to support our customers." 'The process of communicating with our (South American country) plant is incred­ ibly burdensome. They are almost never in synch on engineering changes and timely new product releases are next to impossible." There have, however, been some exceptions to this pattern. A few com­ panies have made location decisions that have 
TI - Building Competitive Advantage through a Global Network of Capabilities
JF - California Management Review
DO - 10.2307/41166723
DA - 1993-01-01
UR - https://www.deepdyve.com/lp/sage/building-competitive-advantage-through-a-global-network-of-GonvNTHaXP
SP - 78
EP - 103
VL - 35
IS - 2
DP - DeepDyve
ER -