Global Environment & Strategic Management
(Week 2)

Operation strategies for
competitive advantage

Differentiation

Response

Cost Leadership

Provide max value as perceived by customer

Flexibility in matching market changes in design innovation and volumes

Distinguishes offerings in a way that customers perceive as adding value

Reasons to globalize

Reduce cost

Improve supply chain

Provide better goods & services

Learn to improve operations

Attract or retain global talents

Understand markets

10 Strategic OM Decisions

Goods & service design

Quality

Process & capacity design

Location selection

Layout design

Human resources & job design

Supply chain management

Inventory

Scheduling

Maintenance

Global Operations Strategies

International Strategy

Global Strategy

Multidomestic Strategy

Transnational Strategy

Import / Export / License existing product

Standardized product
Economies of scale
Cross-cultural learning

Use existing domestic model globally

Franchise, joint ventures, subsidiaries

Move material, people, ideas across national boundaries

Economies of scale

Cross-cultural learning