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OPERATION STRATEGY DEVELOPMENT IN A GLOBAL ENVIRONMENT -NUR AISYAH…

- - - - Improve the supply chain - Locating facilities closer to unique resources.
        
        Improve operation - Understand differences between how business is handled in other countries.
        
        Reduce costs and exchange rate risks - Risks associated with the currency exchange, reduce direct and indirect costs and trade agreements can lower tariffs.
        
        Understand markets - Interacting with foreign customers, suppliers, competition can lead to new opportunities.
- - - - Disadvantage - Increased logistic and inventory costs, loss of control, negative impact on employees, risks may not manifest themselves for years.
        
        Rating Outsourcing Providers - Insufficient analysis most common reason for failure, factor-rating method, points and weight assigned for each factor to each.
- - - - National literacy rate - Work ethics
        
        Rate of technology change - Inflation
        
        Export restrictions - Transportation infrastructure
- - - - Multidomestic strategy - Use existing domestic model globally, franchise, joint ventures, subsidiaries, example Heinz, Mcdonald's, The Body Shop, Hard Rock Cafe
        
        Transnational strategy - Move materials, people or ideas across national boundaries, economics of scale, cross-cultural learning, example Coca-Cola, Nestle
- - - - Strategies for competitive advantage - Differentiations (better or at least different). Cost leadership (Cheaper), Response
        
        Experience Differentiations - Engaging a customer with a product through imaginative use of the five senses.
        
        Competing on Cost - Provide the maximum value as perceived by customers, does not imply low quality.
        
        Competing on Response - Flexibility is matching market changes in design innovation and volumes, reliability is meeting schedules, quickness in design, production and delivery.
  - - - Sample Company Mission - To manufacture and service an innovative, growing and profitable worldwide microwave communications business that exceeds our customer's expectations.
        
        Sample Operation Management Mission - To produce products consistent with the company's mission as the worldwide low-cost manufacturer.