Global Services
Global Services

Core competencies: “capabilities that are critical to a business achieving competitive advantage.” From

Economies of Scale: producing large quantities of goods for a low prices per unit. So instead of printing 25 newspapers for $50 (1 newspaper/$2), one prints 1000 newspapers for $100 (1 newspaper/ ten cents).

Human capital: Investments that increase the value of an employee. Examples include education, training, medical care, etc.

Innovation: “the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organisation or external relations.” Oslo Manual (OECD, 2005: 46)
Knowledge-intensive service activities: activities that rely heavily on professional knowledge, usually a high percentage of professionals carry them out (employees with a  graduate degree). They link the production of knowledge to innovative activities and are used to analyze a firm’s innovation.

OECD: Organisation for Economic Co-operation and Development: “a group of 30 member countries, with a shared commitment to democratic government and the market economy, that has active relationships with some 70 other countries via nongovernmental organizations. Formed in 1961, its work covers economic and social issues from macroeconomics to trade, education, development, and scientific innovation. Its goals are to promote economic growth and employment in member countries in a climate of stability; to assist the sustainable economic expansion of both member and nonmember countries; and to support a balanced and even-handed expansion of world trade.”;rbDictionary

Off-shoring: Move (some of a company’s processes or services) overseas to take advantage of lower costs.

Outsourcing: to procure (goods or services needed by a business or organization) under contract with an outside supplier.

Service Economy: services are a diverse group of economic activities not directly associated with the manufacture of goods, mining or agriculture

Strategic Business Unit: “Company division, product line within a division, or single product or company brand that has an objective and mission different from other company business and that can be marketed independently from the rest of the company.”

Structural barriers: “Barriers to entry are factors which prevent or deter the entry of new firms into an industry even when incumbent firms are earning excess profits. Structural barriers to entry arise from basic industry characteristics such as technology, costs and demand. A narrower definition of structural barriers suggests that barriers to entry arise only when an entrant must incur costs which incumbents do not bear. This definition excludes scale economies as a barrier.”