Quiz #2 Material - MG 402 Module 2 Global Operations
Quiz #2 Material - MG 402 Module 2 Global Operations MG 403
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This 5 page Class Notes was uploaded by Haley Hummer on Saturday September 12, 2015. The Class Notes belongs to MG 403 at University of Alabama at Birmingham taught by Dr. Philip Musa in Fall 2015. Since its upload, it has received 36 views. For similar materials see Operations Management in Business, management at University of Alabama at Birmingham.
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Date Created: 09/12/15
Quiz 2 Material MG403 Module 2 Chapter 2 Operations Strategy in a Global 0 0 Environment Examples of Global Strategies Boeing sales and production are worldwide Benetton moves inventory to stores around the world faster than its competition by building exibility into design production and distribution Sony purchases components from suppliers in Thailand Malaysia and around the world Volvo considered a Swedish company but until recently was controlled by an American company Ford The current Volvo S40 is built in Belgium and shares its platform with the Mazda 3 built in Japan and the Ford Focus built in Europe Haier A Chinese company produces compact refrigerators it has one third of the US market and wine cabinets it has half of the US market in South Carolina 0 Reasons why companies Globalize 0 00000 O O O O O 0 Reduce costs labor taxes tariffs etc Improve supply chain Provide better goods and services Understand markets Learn to improve operations Attract and retain global talent Reduce Costs Foreign locations with lower wage rates can lower direct and indirect costs Maquiladoras what is it World Trade Organization WTO North American Free Trade Agreement NAFTA APEC SEATO MERCOSUR CAFTA European Union EU 0 Improve the Supply Chain 0 O Locating facilities closer to unique resources Know why these are examples I Auto design to California I Athletic shoe production to China I Perfume manufacturing in France Provide Better Goods and Services 0 There are some Objective and Subjective characteristics of goods and services 0 For example I Ontime deliveries I Cultural variables I Improved customer service 0 Understand Markets 0 Interacting with foreign customers and suppliers can lead to new opportunities 0 Cell phone design from Europe 0 Cell phone fads from Japan 0 Extend the product life cycle 0 Learn to Improve Operations 0 Remain open to the free ow of ideas 0 General Motors partnered with a Japanese auto manufacturer to learn new approaches to production and inventory control 0 Equipment and layout have been improved using Scandinavian ergonomic competence 0 Attract and Retain Global Talent 0 Offer better employment opportunities 0 Better growth opportunities and insulation against unemployment O Relocate unneeded personnel to more prosperous locations 0 As you globalize Some Cultural and Ethical Issues 0 Cultures can be quite different 0 Attitudes can be quite different towards I Punctuality I Lunch breaks I Environment I Intellectual property I Thievery I Bribery I Child labor 0 Also Companies should Consider 0 National literacy rate Rate of innovation Rate of technology change Number of skilled workers Political stability Product liability laws OOOOO Export restrictions Variations in language Work ethic Tax rates In ation Availability of raw materials Interest rates Population Number of miles of highway Phone system OOOOOOOOOO Developing Missions amp Strategies 0 Mission statements tell an organization where it is going 0 The Strategy tells the organization how to get there Mission 0 Mission where are you going 0 Organization s purpose for being 0 Answers What do we provide society 0 Provides boundaries and focus StrategyAfter all missions are developed 0 Action plan to achieve mission 0 Functional areas have strategies 0 Strategies exploit opportunities and strengths neutralize threats and avoid weaknesses Strategy Development and Implementation 0 Identify key success factors 0 Do SWOT analysis 0 Build and staff the organization 0 Integrate OM activities with other areas activities Again the Strategy Options for Competitive Advantage are 0 1 Differentiation better or at least different 0 2 Cost leadership cheaper O 3 Response rapid response Competing on Differentiation O Uniqueness can go beyond both the physical characteristics and service attributes to encompass everything that impacts customer s perception of value Competing on Cost 0 Provide the maximum value as perceived by customer Does not imply low quality Competing on Response 0 Flexibility is matching market changes in design innovation and volumes I A way of life at HewlettPackard 0 Reliability is meeting schedules I German machine industry 0 Timeliness is quickness in design production and delivery Managing Global Service Operations 0 Requires a different perspective with regards to I Capacity planning I Location planning I Facilities design and layout I Scheduling Theory of Comparative Advantage O O O 0 If an external provider can perform activities more productively than the purchasing firm then the external provider should do the work Purchasing firm focuses on its core competencies and outsource the other activities that it still needs to remain competitive Extreme care should be taken in selecting firms to which you outsource activities There are advantages and disadvantages in outsourcing Strategic Planning Core Competencies and Outsourcing O O Subcontracting contract of manufacturing complete product or components Outsourced activities tend to include I Legal services I Travel services I Payroll I Production I Surgery Rating Outsourcing Providers 0 O 0 Insufficient analysis is the most common reason for failure in outsourcing We can use Factor Rating Method for selection of providers to outsource activities to Points and weights are assigned for each factor to each company under consideration
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