【正文】
strategy 27 MANAGING OPERATING EXPOSURE B. Proactive Marketing and Production Initiatives (con’t) 2. Production: product sourcing input mix plant location raising productivity 28 MANAGING OPERATING EXPOSURE II. Marketing Management Adjustments A. Market Selection 1. use advantage to carve out market share 2. Market segmentation 29 MANAGING OPERATING EXPOSURE B. Pricing strategy: Expectations critical 1. If HC value falls, exporter gains petitive advantage by increasing unit profitability and market share. 2. The higher price elasticity of demand, the more currency risk the firm faces by product substitution. 30 MANAGING OPERATING EXPOSURE 3. Following HC depreciation, local firm may have much more freedom in its pricing. C. Promotional Strategy 31 MANAGING OPERATING EXPOSURE D. Product Strategy exchange rate changes may alter 1. The timing of new product introductions, 2. Product deletion , 3. Product innovation. 32 MANAGING OPERATING EXPOSURE III. Product Management Adjustments product sourcing and plant location are the principal variables to manipulate. A. Input mix B. Shift production among plants C. Plant location D. Raising productivity 33 MANAGING OPERATING EXPOSURE IV. Planning For ExchangeRate Changes A. With better planning and more petitive options, firms can change strategies substantially B. before the impact of an currency change makes itself felt. C. Implication: paction of adjustment period following an exchangerate