Pros And Cons Of Licensing

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1. Licensing is one of the mechanisms that a firm uses in globalizing. Licensing allows foreign firms to use the design of the original designer to make and sell the products in restricted markets. It involves the sales of like products with a new trademark in different countries. Merits of licensing, is useful for firms to reach international markets without establishing marketing arms. A firm expands its market and retain its earrings made in a foreign country through licensing. The products name and logo are the cultural aspects that are considered offensive in a foreign market. Drawbacks of licensing, is like if a firm sells its product in a foreign market, it must share its profit with the foreign country. The firm has lost its…show more content…
Increased free trade and communication between nations, along with increased access to technology, media, education, healthcare, consumer goods, and other resources are often considered advantages of globalization. Some disadvantages of globalization include exploitation of developing countries, cultural homogenization, and adverse effects on local economies and the environment. Globalization is a complex issue, and while some argue that it reduces global poverty, others argue that it increases wealth inequality worldwide. 3. There is great prestige in winning the Baldrige award. Firms that do not win the award but receive a site visit from Baldrige examiners, often include in their company brochures and other promotional material mention of themselves as being "Baldrige Qualified." The Baldrige Award, or even being Baldrige Qualified, helps firms attract high-quality suppliers, customers, and other stakeholders. The attention to quality that being involved in the Baldrige award helps a firm establish a culture of quality and helps a firm rally its employees around quality improvement…show more content…
Lean manufacturing is a production theory that emphasizes the elimination of waste in all forms. Resource expenditures that do not contribute to the value of a product are wasteful in a lean manufacturing environment. When waste elimination is the goal, the results are an improvement in customer service, efficiency and the quality of the products a business manufactures. Once a quality team identifies a defect or inefficiency, members can begin working on a root cause analysis. While some businesses implement inspection processes to remove defective material from production, lean organizations conduct a root cause analysis to resolve the problem and stop the defects from ever occurring. Root cause analysis traces the cause of a defect back to its origin. Causes may include machinery failure, human error, raw material defects or a problem with the work process. Lean manufacturing principles include a zero-defect policy that encourages workers to create error-free
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