Investor Presentaiton

Redefining Productivity in the Value Chain Firm Infrastructure (e.g., Financing, Planning, Investor Relations) Human Resource Management (e.g., Recruiting, Training, Compensation System) Technology Development I (e.g., Product Design, Testing, Process Design, Material Research, Market Research) Procurement (e.g., Components, Machinery, Advertising, Services) Operations Inbound Logistics (e.g., Incoming Material Storage, Data (e.g., Assembly, Component Collection, Service, Customer Access) Fabrication, Branch Operations) Outbound Logistics (e.g., Order Processing, Warehousing, Report Preparation) Marketing & Sales (e.g., Sales Force, Promotion, Advertising, After-Sales Service (e.g., Installation, Customer Support, Complaint Proposal Resolution, Writing, Web site) Repair) • Shared value purchasing • • Energy and resource efficiency Leveraging location of facilities Strengthening local distribution channels. 20121019 Mexican Competitiveness Presentation-FINAL 31 • • M a r g i n Logistical efficiency Enhancing the productivity of lower income employees and improving their wages Improving employee health Copyright 2012 Professor Michael E. Porter

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